Learners Quest
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Playing the stock market is a high-risk, high-reward way to make money. Find out how to research stocks and get started trading with this simple guide from an experienced stock trader.
1. Read books or articles about investing in general and the stock market in particular. Learn about the various risks involved in investing, as well as what not to do (like following hot tips).
2. Determine why you want to play the stock market - are you looking for a long-term venture or just trying to earn some quick bucks? What kind of investor are you (eager but inexperienced with risk, comfortable with low-to-moderate risk)?
3. Pick a brokerage firm that suits your needs. If you are investing for the long-term, you will want a discount broker - there's no need for bells and whistles, just good prices and solid research. If you're a risky but experienced investor, you might want to go with a high-end firm so that you can invest in more speculative stocks and rack up some quick profits. Fees, commissions and finder's fees are generally all built into these packages, so don't worry about additional costs here.
4. Open a trading account. Most firms will require that you start investing a minimum amount - usually about $1000. Some will allow you to start with $500, but if you're just starting out it's probably best to start with more.
5. Decide what kind of investor you are (see #2). If you're a newbie, you'll want to stick to low-to-medium risk investments for the first year or so before trying anything too risky. Personally, if I wanted to play stocks for fun I would have a very wide range of stocks from which to choose - ranging from super low risk (Starbucks, Hershey) to fairly high risk (Apple Computer).
1. Read books or articles about investing in general and the stock market in particular. Learn about the various risks involved in investing, as well as what not to do (like following hot tips).
2. Determine why you want to play the stock market - are you looking for a long-term venture or just trying to earn some quick bucks? What kind of investor are you (eager but inexperienced with risk, comfortable with low-to-moderate risk)?
3. Pick a brokerage firm that suits your needs. If you are investing for the long-term, you will want a discount broker - there's no need for bells and whistles, just good prices and solid research. If you're a risky but experienced investor, you might want to go with a high-end firm so that you can invest in more speculative stocks and rack up some quick profits. Fees, commissions and finder's fees are generally all built into these packages, so don't worry about additional costs here.
4. Open a trading account. Most firms will require that you start investing a minimum amount - usually about $1000. Some will allow you to start with $500, but if you're just starting out it's probably best to start with more.
5. Decide what kind of investor you are (see #2). If you're a newbie, you'll want to stick to low-to-medium risk investments for the first year or so before trying anything too risky. Personally, if I wanted to play stocks for fun I would have a very wide range of stocks from which to choose - ranging from super low risk (Starbucks, Hershey) to fairly high risk (Apple Computer).
