| Buying and selling shares of stocks is a very | | | | required, of which any lower will mean additional |
| profitable activity. Of course, you must learn how to | | | | service charges. |
| buy and sell stock before the possibilities of profits | | | | Study the Market |
| are realized. Bear in mind that the stock market is a | | | | You have to study the market for at least a few |
| complicated world filled with technical jargons, | | | | weeks before making your investment and/or trade |
| analytical tools and other economic factors. | | | | moves. This is the time to apply the knowledge |
| Learn the Ropes | | | | learned during your research and paper trading days. |
| You can choose from many ways to learn | | | | When choosing the best stock picks, you have to |
| everything about shares of stocks. You should start | | | | determine if it fits into your overall investment plans. |
| with the public library, which is an excellent source of | | | | Then, you must look at your predetermined |
| information with its books on investments, trade | | | | parameters like the price-earning ratio, the company's |
| journals and business newspapers. You may also use | | | | reputation and the movement of the stocks in |
| the Internet to gather knowledge and information on | | | | relation to the rest of the industry. |
| the subject. You will find many educational sites like | | | | Buy and Sell the Stocks |
| Investopedia and Yahoo! Finance. Beware of sites | | | | When you have chosen the shares of your choice |
| that offer insider information since these are usually | | | | based on fundamental and technical analyses, you can |
| scams. | | | | then instruct your stockbroker to purchase said |
| Once you have learned the theory, you are now | | | | stocks. It is strongly recommended to buy in bulk to |
| ready to apply your knowledge. Take advantage of | | | | maximize the profits. You can instruct the |
| the paper trading feature of most online brokerage | | | | stockbroker in two ways: Limit Order and Market |
| sites. Basically, you can practice investment skills in a | | | | Order. When you say limit order, it means that you |
| paper trading account by treating it as a real one. | | | | authorize the stockbroker to purchase or sell a |
| You open an account, invest virtual money and make | | | | specific number of shares at a predetermined price, |
| buy and sell decisions. This is the best way on to | | | | within a limited period only. For example, you want to |
| how to buy and sell stock without actually | | | | buy 600 shares of Company X at $3 per share until |
| jeopardizing your real money. | | | | January 1, 2011 only. |
| Open an Account | | | | When you say market order, it means that you are |
| This time, you will open a real online trading account | | | | willing to buy or sell stocks at the current market |
| with either a full service or a discount stockbroker. | | | | price. Keep in mind that unless otherwise specified, |
| The requirements will differ from one company to | | | | your order will be considered a market order. The |
| the next, so it is important to do your research. You | | | | important thing about learning how to buy and sell |
| must also fund your account, which can start from | | | | stock is that you exert your best efforts and pour in |
| as little as $500 to as much as $10,000, depending on | | | | the time to do so. Your research, analysis and gut |
| the stockbroker company. This may or may not | | | | instinct borne of experience must work together to |
| form part of the minimum maintaining balance | | | | ensure profits at the stock market. |