stocks

Two Main But Very Different Places Where To Buy Stocks

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There are a few different places where to buy stocks. You must buy your stocks and other securities through a registered broker who works for a registered brokerage house. Stock trading is really easy. Making money with stock trading is not.

While stock trading is the main focus of this site, know that you dont have to limit yourself to simply stocks. You can also buy such things as options, ETFs and currencies. If this sounds good to you, you may want to check out the other markets.

But, for now, back to what we’re all here for, stock trading.

I hope by the end of this you understand the difference between a full service broker and an online discount broker. Those are the two places where to buy stocks. I use a online discount broker, Scottrade. I use them because I prefer to do all the research myself. But if you are someone who isn’t familiar with which stocks to buy, you may want to opt for a…

Full Service Broker

The place where to buy stocks if you would rather trust your money with a professional is with a full service broker. They are the most costly of the two, with a fee based on the amount of stock you buy instead of a fixed fee. They will give you advice and talk with you on a one-on-one basis. Online discount brokers don’t offer this.Hundred dollar bills

My grandma uses a full service broker. I often talk to her about technical analysis and choosing stocks since I am more of a hands-on guy. I like to know exactly when and why I’m buying a stock. I do it for the knowledge. I don’t mind losing a few hundred bucks, as long as I learn from my mistakes, which I usually do.

She is happy for me but prefers to trust her money to the professionals, like many Americans who prefer not to be bothered with all the work. Full service brokers generally focus on long-term gains, and diversifying your portfolio. They employ a whole department focused on research to find the best stocks for you and to monitor your current investment. Where to buy stocks would be a full service broker if you are like my grandma and feel safer dealing with a professional.

Online Discount Brokers

Another place where to buy stocks is from an online discount broker. Scottrade has a minimum opening account balance of $500. This is one of the reasons why I chose Scottrade. Soon, I may be changing over to another online discount broker that doesn’t charge as much. But, Price is not the only important thing for me. With Scottrade, you get the benefits of a larger company, with still the low trading price. Scottrade also has many offices around the country.

The lowest charging brokerage as far as I can tell, charges only 2.50 per trade. But, since I will be only doing between two to five trades per month, I might stick with the same broker.

The small minimum opening balance is a big seller for Scottrade. they also provide other benefits such as $0 account closing fee, and 444 branches nationwide, which are more offices than the other leading brokers.

This is a big difference from the not so well known online discount brokers, which many have only a few or no offices.

Now You Know The Difference

So, if your going to get a full service broker, good luck. I’m not familiar which one is the best. But, they do compete often with one another. So, try to find a good deal with the top players.

For me, I prefer an online discount broker and to do all the research myself. If your in the same boat, I look forward to teaching and hearing back from you as I continue to write this site, as this site is focused around technical analysis.

7 Facts To Help You Understand The Stock Market (For Beginners)

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1) Origins Of The Stock Market

Understanding the stock market for beginners starts with understanding the idea of the stock market. Originally, it came to America with Alexander Hamilton. He quickly spread the idea, with the use of his public status. With that, the idea exploded.

The stock market was a way to build up the economy, since it was still in its beginning stages. Today, there is a statue of him in the heart of the financial district of New York.

2) What Is The Purpose Of The Stock Market

There are two purposes for the stock market. The first being for the anyone with a few bucks and a little knowledge to make some money. Of course, if you only have a little knowledge, you are taking much more of a risk.

The second is for businesses to make money. There is much less risk with this. However, there are down sides to this. The first being that the company must give up part of they’re ownership. The second being that they must become completely transparent.

3) Why Buy Stocks?

To understand the stock market for beginners, you must understand, “just why buy stocks?”.

I love to trade stocks. The stock market is real, it’s not a fly by night scheme. It is also hard to master, as with anything worth doing. I enjoy the passion and excitement of being able to invest in the real world as well as being able to learn at the same time.

To me, I see two main important factors for why to buy stocks. The first is to make money. The second is the incredible amount of information you can gain just from practice.

4) Where To Buy Stocks?brokers

One of the basics of understanding the stock market for beginners, is understanding exactly how to go about buying stocks. This is simple. You buy stocks from a stock broker. That’s where I trade. That’s actually the only place. There are two kinds of stock brokers. Both with advantages and disadvantages.

Some charge more, some charge less. Some even manage your money for you. They are all in competition for you. So, make sure you get the facts before choosing one.

5) Stock Exchange Symbols

Stock exchange symbols range from one letter to five letters. In the beginning, with the NYSE, stocks were only assigned one or two letter symbols. The companies that were most actively traded were rewarded with one-letter symbols. Originally, you could tell which exchange a stock was being traded on just by looking at they’re symbol. But, that all changed in 1997.

6) Extended Hours Trading Of Stock

As well as with trading on the regular markets, you can also trade stock in the evening. The stock is not traded on the same exchange as during the day, but something called an ECN. If you wish to trade at this time, you must find a broker that matches your needs. But first, you should learn a little bit about the risks and rewards.

7) Stock Investment Risks

Understanding the stock market for beginners also includes understanding just what you are getting yourself into.

There are risks associated with stock investing, as there are with any true investment or business. Each trading strategy has it’s own set of risk. Of course, with more risk comes the possibility of more reward. So, what exactly is the perfect blend of risk and reward for you? I hope this helps you make your decision.

If you’re not comfortable with the risks associated with the stock market, then perhaps a more conservative approach to making money and managing money will work better for you.

Why Successful Stock Trading?

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How’s your stock trading doing? Have you been successful in the past ten years? Or has your 401K or personal investing account been sucked dry the gyrations of the stockmarket over the past few years?

Are you looking to get started with your first time investments? Or are you now dipping your toes back in trading because you want to rescue your current investment from its double digit losses?

Can you answer ‘yes’…?

Where are your stocks trading?

You’ve read the newspapers, you’ve watched the TV news, perhaps you’ve even dabbled less than successfully with a few stocks …

Successful Stock Trading aims to take you from setting your foundations right through to finding and making successful stock trades.

While we won’t tell you which stocks to buy or sell, I’ll be giving you examples of what works, what doesn’t, and tips on managing your money and your investing.

This site should be especially appropriate if you can answer ‘yes’ to any of the following questions:

  • Have you bought and held only to find some stocks go to $0?
  • Have you lost a lot of your portfolio in the recent market gyrations?
  • Have you traded in and out of stocks with no clear goals or direction or profits?
  • Are you facing personal finance troubles and suspect that stock investing or stock trading could help you get out of them?

Your Financial Journey Begins…

This site started out as a personal journey on another website, a journey for me that began in 1995. What happened you may ask? One of life’s turning points: my marriage. For many people, the onset of marriage, the birth of a child, the prospect of retirement or redundancy, all act to focus the mind on one’s personal finances.

While I take you through the steps to successful stock trading, I will encourage, describe and examine the basic steps in light of my own personal experience. However, each of your own situations may be quite different from mine, and the story of how you arrived at your current place also different. As you correspond with me, I’ll try to offer my own insights, too.

Start at the very beginning

For those interested in stock trading, it’s a risky field, but one thing is certain: everyone needs proper foundations. By building up your foundations before you start investing, you will lay the the concrete for a stronger and much more satisfying experience in the stock market.

So let’s take a look at the basic steps to successful stock trading.

Order, order!

Step 1: put your financial house in order

In the excitement to invest or trade stocks, many investors risk losing (and do lose) their shirts because what starts out as a gamble on a hot tip often means that person’s savings have gone down the tube, or perhaps even their next mortgage payment or more.

So putting your finances in good stead, though the least exciting part of the journey to successful stock trades, is in fact the most important.

You will learn the basics of how to budget, why to pay down high interest loans, the risks of borrowing. More than this, you will gain an insight into the laying of your foundations. You will also find out how and why you should set aside some real savings in the bank, even before you make your first successful trade.

This blog doesn’t aim to be a personal finance blog, so we won’t necessarily delve as deeply into this area as could be done. You’ll be pointed to other resources for that.

Ready, set, … wait!

Step 2: We will find out about the stockmarket, what trading is, ways to trade stocks, which brokers are best, and which are suitable for successful stock trading. We’ll also look briefly at the different markets you can invest in: stocks, bonds, commodities, options, and much more.

We may even do some paper trading to help you see what mistakes you might make, and we’ll look at some online tools for those.

Risk vs. Reward

Step 3: We’ll look at what kind of risk profile and rewards you are looking for by taking part in the stockmarket.

Are you looking for early retirement, saving for a house, your child’s education or you just want to be ‘rich’… Whichever of these is your situation, we may have some suggestions that you could look at to help you manage risk, review your risk profile, and determine what your longer term goals are.

Nitty Gritty

Step 4: This gets down to looking at some of the companies on offer and examines how to read financials for the fundamental investor. We’ll also be having a look at some stock portfolios that you could trade. Although I won’t be suggesting particular trades, we’ll look at some strategies and ways of organizing your portfolios.

Research, read, and reward

Why do all the good words start with ‘re’? Simply because it’s your REsponsibility to do your own due diligence (check out any trades/stocks and information) on what you intend to buy or sell. No one else can do this for you. Nor should they. Many a pundit will want you to follow their model, their trades, and charge you a PRETTY PENNY for this information.

I won’t. That’s my promise to you. I’ll provide as much good value information as I can. Of course, you need to consider my input carefully before you make your decision. After all, it’s better to make your own decisions using your own research rather than accept the glib tenets and tired advice of some commission-based ‘expert’, isn’t it? That’s my aim, simply.

Qualified? Hell, no!

What qualifications do I bring to this whole affair? None. I’m a teacher who fell into business, started working on website development and reading about the stock market in depth nearly 15 years ago. I’ve traded stocks through the dot com boom era, earning a decent return before losing it all in the bust that followed.

I’ve clawed my way back with some effort to a portfolio that is currently worth around 50% of the dotcom boom period, but with a monthly dividend, and about 10% in cash at the moment. And I’ve decided to share my experience with you in the hope that you will learn from my mistakes, enjoy reading my website, and may even find a few decent resources to help you in your quest for successful stock trading.

The right tools: the right know-how!

Thoughts for investors:

Sometimes you have to act without having certainty. That is not to say you are acting irrationally. You are just acting with incomplete information. And sometimes you have to bide your time. Wisdom comes from being able to discern what course of action is required at the given point in time.

 Either way, you are going to need the right tools to help you do successful stock trading, aren’t you? And in these crazy times, this goes doubly so, after all… Don’t forget to read my disclaimer, though!

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Whatever investing you decide to do, remember:

* no investment is guaranteed,
* any returns need a combination of research and insight and guts
* and avoid loss of principal.