When to Start?

        You may be wondering when the best age to start investing is. Well, it doesn't matter! Starting in your preteen years, or later on makes little difference. It is just a matter of experience, research, and common sense. Spring Break and Summer Vacation are often the perfect time for students to start investing because of all the free time on their hands. This means fewer distractions, and more time to research and start earning your fortune!

        The first thing you will need is a brokerage firm, or the middle-man for investing. There are a variety of firms that adhere to each trader's preferences, some of which are listed below:

• Vanguard
• Fidelity
• Options Express
• E*Trade
• TD Ameritrade
• Tradeking
• Scottrade
• Charles Schwab
• Sharebuilder

A comparison of these firms can be found on http://brokerage-accounts.findthebest.com/.

        Also, you will need to find a site that suits your preferences when it comes to researching stocks. These site will help you obtain crucial information and statistics on the state of a company. Some sites that are commonly used are Yahoo! Finance, Google Finance, Bloomberg, Financial Visualizations, etc. With help from these sites, you will soon become accustomed to working with stocks!

If you have any questions, feel free to contact us or leave a comment below. We will reply promptly. Also, please add us on Google+ and don't forget to subscribe.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

An Investing Overview

        After reading about stocks, and the profits that they can bring, you may be wondering “How do I invest?” Look no further than this guide, which will teach you how to start picking stocks. Stock picking is easy, but requires a lot of planning and research. You are using real money here, and if you make a mistake it could be disastrous. (If you want to practice before investing, many companies have websites that simulate the market with fake money.) However, with proper planning, research, caution, common sense, and a lot of luck, you can minimize losses and maximize gains. With that in mind, let’s learn to invest!

        The first step is research. While this step may seem unimportant, it is critical for successful investing. Websites, such as Yahoo Finance or Google, provide information on PE Ratio, Market Cap, Enterprise Value, etc. You might want to pay attention to these company summaries. Is it in debt? Is it releasing any new products or undergoing a massive change? What is the target price for the stock? What are analysts' opinions? There is a lot amount of information on the Internet that can be harnessed (not all of it is reliable), but you need to know how to use it. Make sure you have done extensive research before deciding to buy a stock.

        Once you have decided on a stock and done research, you have to open an account with a brokerage firm. A brokerage firm is simply a company that facilitates the buying and selling of stocks for you, adding convenience and speed to a once arduous process. Think of them as the middle-man between you and the market. With online brokerage firms, you can buy nearly any stock wherever there is a computer. There are many different brokerage firms to choose from, each catering to a different breed of investor. Do some more research on different firms and choose wisely. Once you have decided on one, make an account and put some money in it. Now that you have your account, money, and knowledge on what stock to buy, it’s time to invest!

        This step varies from firm to firm, so you may need to consult the FAQ of your firm’s website. Usually, you go to the “Trading” tab and find the stock you want to buy. You then create a market order, which outlines the time when you want the stock purchased, how many shares of the stock, and which source of money to use. There are many different types of orders, and firms usually explain these in detail. Now, look over your order. Makes sure everything is as it should be, and if you are satisfied, submit it. If you send the order during market hours, a broker will get your order and will buy the stock(s) for you. If you send the order when the market is closed, as soon as it opens a broker will receive your order and buy your stocks for you. You will receive a notification when your stocks have been bought. Once you get that notification, congratulations! You have now bought your first stock!

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

What Are Stocks?

    Throughout the course of your life, you have probably heard stocks mentioned in all sorts of situations: in the news, on the radio, by your parents, etc. So, what exactly are stocks? Over the past few decades the way they work has come to change greatly. However, in the 21^st century you can come to think of a stock as owning a portion of a company.

            Stocks are counted in shares. One share represents a small portion of the often hundreds of millions of shares of a company. They can be bought and sold through the stock market in large or small amounts. Generally, you want to buy a stock at a low price and sell it at a high price. That way, you earn money!

            Shareholders are the people or companies that own shares of a company. If you own a large percentage of a company’s stock, you can get a seat on the board (or a say in the way the company runs things). If you own over 50% of the stock, you theoretically own the company. When you start out, this may seem difficult to achieve, but by slowly growing your bottom line, this possibility isn't that far away.

            In the United States, there are a plethora of laws on how the stock market must run. For beginners, trading stocks generally requires a stock trading accounts, which are provided by most major banks and investment firms. Trading usually costs anywhere between $4-$12, and the government takes a portion of your earnings as income tax.

            The value of money constantly changes due to inflation; so leaving it in the bank could possibly reduce its value. On the other hand, the stock market provides a method of earning money right from your computer! However, you shouldn't take to investing in stocks lightly because there are many risks. Poor investments could cause you to loose all your money. You can think of the stock market as gambling: sometimes you win, sometimes you loose. However, unlike gambling you can reduce your risks through research and experience.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.

An Introduction

Investing in the stock market provides a method of earning money from the convenience of your home computer. Though it is a huge risk, with proper education, insight, and a bit of luck, you can earn a lot of money. Stock Quests will provide tips and information on investing. If you have any questions, leave a comment below.

Disclaimer: Trading stocks has extremely high risks, and should not be taken to lightly without a thorough understanding. This is written from a purely commentary point of view and is not meant to suggest buying, selling, or holding a stock. All traders must do their own research prior to investing. We (StockQuests) are unaffiliated with all of the companies that are mentioned on this blog, and can't be held responsible for any losses that may occur. Invest at your own risk.