After the economic crash of 2008, many people turned to different methods of making money. Some, while non-traditional, enabled folks to build a nest egg in case another financial storm wreaked havoc on the word. While you do need to hire an accountant who serves at an investment brokerage firm to help you, here are five basic tips that you should know before trading stocks.
In the investment and stock world, as with any industry, people use their own types of slang and jargon. It’s important for you to know these phrases if you decide to make investment choices without a stockbroker to explain what the different terminology means. Talk to friends, family members, or professional peers who are already in the stock training business, purchase literature about stocks, and also visit online forums to learn about the different phrases and words used.
Set Your Goals
If you have no clue where your target it, you will probably miss the bull’s eye. The same is true when it comes to investing. You must determine an investment and financial goal before you make your first stock trade. This will not only help to guide your investment decisions, but it will also aid you in what stocks you buy into.
Do Your Homework
As with any new activity, it’s important to do your research on the stock market and investment trading before you dive head first into it. Learn from people who already do it, talk to a stockbroker, and read books and online websites about the subject.
Open an Account
You can do this by simply depositing cash or stock into a brokerage account. Companies such as Citigroup’s Smith Barney or Charles Schwab both offer brokerage account options that you can manage online from the comfort of your own home or with a broker face to face.
Websites such as Ameritrade and E-Trade are good companies to use if you prefer to do everything online. As stated above, research the stock market to see which company is best for you.
You should decide if you want to invest in stocks online or go through a brokerage firm. After scrutinizing the stock, decide how much money you’d like to put down and know if you want to make a market or limited order. To save money on expensive broker fees, you can also buy stocks directly from companies.
Buying stocks are a good way to boost your income and save for a rainy day. Just remember to learn the terminology, do your homework, and set goals for yourself. Before you know it, you’ll be taking the stock world by storm.