How do I go about buying stock?

Question

I want to know how to buy stock,I'd like to buy the stock myself instead of doing it through a company like E Trade or any other.

Answer 1

Hi Tyler
If you're really interested in this there's a ton of info on the web...
1. Buying Stock without a Broker
... article discusses the advantages of buying stock without a broker the three ... Investing 101 Stocks, Options & Warrants Mutual Funds Real Estate Investing ...beginnersinvest.about.com/cs/brokers1/a/042501a.htm
2. Stocks Basics: Buying Stocks
... behind the stock market, but how do you actually go about buying stocks? ... 6) Stocks Basics: Buying Stocks. 7) Stocks Basics: How to Read A Stock Table/Quote ...www.investopedia.com/university/stocks/stocks5.asp
3. Why Aren't You Buying Stocks on Sale?
... impulses to lose money and take advantage of stocks on sale. ... Stocks '07 Report. Stock Advisor. TMF Green Light. More... Investing. Bonds. Broker Comparison ...fool.com/investing/value/.../why-arent-you-buying-stocks-on-sale.aspx
4. optionsXpress | Investing 101: Buying Stocks
... including the players in the market and how the process works for buying and selling securities. ... Exchanges. Reading the Stock Tables. Buying Stocks ...optionsxpress.com/educate/investing101/buying_stocks.aspx?sessionid
and about a thousand others...

But first you need to understand the theory. Here's a few books to get you started...
Stock Market Logic by Norman Fosback. Another classic.

Jim Cramer's Mad Money: Watch TV, Get Rich by James J. Cramer and Cliff Mason

Real Money: Sane Investing in an Insane World by James J. Cramer

Stock Investing For Dummies by Paul Mladjenovic

How to Make Money in Stocks: A Winning System in Good Times or Bad by William J. O'Neil

The Motley Fool Investment Guide, by David and Tom Gardner

Beating the Street by Peter Lynch

7 Chart Patterns that Consistently Make Money by Ed Downs (you can get it for free at Omnitrader)

A Random Walk Down Wall Street by Burton G Malkiel

You can get most of these and many others in your public library. HAPPY READING THIS SUMMER and don't forget to have fun!
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Answer 2

The answers that tell you that you need a broker really push the thought that getting investing advice from strangers can be dead wrong.

I currently own 3 DRIP's (Dividend Reinvestment Plans). General Electric, Johnson & Johnson and HSBC. I've had the for over 15 years. There are 100's of well known companies that have these plans where you can buy the shares directly from them at little or no cost.

Charles (or Chuck) Carlson has written several books on this topic. Search his name nd "DRIP". You should come up with what you need. I'd also try Amazon.com.

Good luck!

Answer 3

1. You need a broker.

Brokers like E-trade, Zecco, Tradeking, etc. are needed to buy stocks. They are needed because stocks are traded on exchanges, and it is the brokers who have access to the exchanges, so unless your a floor-trader, you need a broker. I know Tradeking is $4.95 and Zecco is $0.

2. Find the right stock.

Don't go with the crowd, or some article written by "experts", or what your friends/family, etc. tell you. If you don't know what stocks to pick, buy index funds, and ETFs. They track market benchmarks like the Dow Jones, Nasdaq, AMEX, S&P500, and many many more. These benchmarks have always posted gains over time.

Answer 4

First you have to deal with some type of broker to buy stocks. But before you invest in anything, my advise is to read, read, read! Know what you're doing or you will lose a bundle!

Answer 5

I see you are interested in investing in the stock markets. Start trading stocks is as simple as opening a trading account with no minimum investment amount and then picking a stock for as low as $100 and then buy. You need to buy through a broker, there are no way around this. However, that simplicity is truly the wolf beneath the sheep's skin.

There are quite a number of things you need to learn before you can even start thinking of the stock markets ...

1. You need to understand how the stock market works and what it is exactly about.

2. You need to know what are the different styles of trading in stocks and shares.

3. You need to read about why so many people lose their shirts in the stock markets so that you can avoid their mistakes and also decide if this is a risk you want to take.

For all these issues and more, you can read about them from some of the articles that I wrote at http://www.mastersoequity.com/articles.htm

After you are adequately armed with the basic concepts and ideas, you need to know how to find profitable stocks to trade or invest in. You can do that the easy way by subscribing to stock pick services (example http://www.stockpickmaster.com ) or you can learn to use charting tools and softwares to find stocks with parameters that you can pre-define. (example http://worden.mastersoequity.com/).........

Remember, the slogan "Just Do It", Just won't do for the stock markets. If profiting in the stock markets is as simple as buying a single stock , then why are so many people still poor?

After you have all the above mentioned knowledge, you need to ask the following golden questions before you can decide whether a stock is worth buying or not :

1. Why are you of the opinion that this stock will rise?

2. Is your opinion valid in the first place?

3. When are you expecting it to rise? Can you hold on for that period of time or longer?

4. What is your expected entry price? After what price would your expected profit margin be too thin to enter upon?

5. Where is your expected stop loss point? What is your stop loss point based on? Where will you tell yourself that it is time to take a loss and get out?

6. Where is your expected profit taking point? What is your profit taking point based on?

7. Does the way you are buying the stock allow you to hold on until your expected profit taking point?

8. How much of your money should you dedicate to this one trade?

9. What is the level of primary, secondary and idiosyncratic risk you are undertaking when deciding how much of your fund to use?

10. What is your cashflow need? Does your cashflow needs allow you to hold the full lifetime of the stock?

After you are able to answer all these questions confidently, THEN you are ready to... PAPER TRADE your stock strategy. Yes, even at this point, you are NOT READY to trade for real. You should trade on PAPER for at least 6 months and become consistently successful BEFORE you take your stock strategy into real life.

Then.. you are ready to start... but there is still no guarantee of success as paper trading is very different from real trading. You will need another maybe 1 year or 2 trading very little money and be consistently successful BEFORE you are ready to increase your stakes.


So, as you can see, success in the stock markets is not easy at all the the less knowledge you have, the more risk you undertake. I lost hundreds of thousands in the stock markets before I become successful.

Take heed and good luck.


All in all, investment and trading is a lifelong education and non stop learning. No one is ever done learning and catching up with changes in the markets.

If you care to read about how I went from completely broke to retired millionaire trading stocks and options by 28 years old, you can go to http://www.mastersoequity.com/


In conclusion, what I am saying here is that trading stocks and investing for profit is a professional game that takes years and a lot of money to learn, so it is not something that someone in need of college fees should do ... now.... but you should certainly start to learn about it right now.

Hope these information helps.


http://www.optiontradingpedia.com/

http://www.mastersoequity.com/

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Answer 6

The way you buy stock is through a brokerage like Etrade, Schwab, etc...

Answer 7

you can buy sell only through a broker
the best among them is

icicidirect.com
for further information contact Rupesh:9895531846