Looking for the fundamentals on stock trading? You can come to the right place.
This stock trading tutorial will tell you all you need to know to get started with stock trading.
True, there are many places online that you can go to find basic information on stock trading.
We have compiled the most pertinent information that can help you get on your way to trading online so you do not have to look in multiple places; it's all right here.
What is stock trading? How does it work? Have you heard of the New Stock Exchange, NASDAQ and the American Stock Exchange? This is where stocks can be bought and sold in person- in the stock market.
Stocks can also be bought and sold online using the online stock exchange; all you need is a computer and access to the internet.
Two Types of Markets One important thing for you to take away from this stock trading tutorial is that there are two types of markets- the primary market and the secondary market.
In the primary market, stocks are made available via public offering.
What this means is that a company makes shares of their business available for purchase by the public.
Individuals that choose to purchase shares of the company are then part owners of said company.
The size of the share purchased dictates what size ownership you have in the company.
In the secondary market, shares that were previously introduced into the market are traded but the company that initially offered shares is involved in the trades.
Buying Stocks Another crucial piece to this stock trading tutorial is telling you how you can go about purchasing stocks.
There are a number of ways to purchase stocks, but the most popular way is to buy stocks through a stock broker or a brokerage agency.
There are two types of brokerages- a full-service brokerage or a discount brokerage.
A full-service brokerage will not only provide advice, but they will also handle the accounts for the buyer.
Discount brokerage will buy stocks for you, but that's it.
They do not offer any advice nor will they manage your accounts.
Another option that you have when it comes to buying stocks is to purchase the shares directly from the company.
You can do this via direct investment plans or dividend reinvestment plans.
Protecting Your Investments As an amateur investor, it is important to educate yourself as much as possible on buying and selling shares.
There is a wide variety of software and courses available online that can help you learn about trading stocks.
Though many people say that trading stocks is all about luck, which is not the case;trading stocks is very methodical.
It requires planning and having a system in place.
This is where educating yourself becomes very important.
It is also advisable to not try to buy too many stocks at one time; ease your way into the stock market little-by-little.
Once you get the hang of things, then you can start taking on more stocks and trading for more money.
Kudos for you to reading this stock trading tutorial and taking the first step into taking charge of your stock trading future.