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.