open your own stock trading account first. then, you can either choose online trading or having your own broker.
then start your investment journey by picking the best potential stock, make due diligence on how much it worths (or calculate its intrinsic value) and start buying them when the price is right (within its margin of safety).
Happy Investing & GoodLuck!
Step-by-Step Stock Investing for Beginners
http://www.stock-investment-made-easy.com/
2007-07-23 03:22:37
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answer #1
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answered by BigBen 5
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Before picking the right stock you need to do some analysis. There are two major types of analysis: 1. Fundamental Analysis 2. Technical Analysis Fundamental analysis is the analysis of a stock on the basis of core financial and economic analysis to predict the movement of stocks price. On the other hand, technical analysis is the study of prices and volume, for forecasting of future stock price or financial price movements. Simply put, fundamental analysis looks at the actual company and tries to figure out what the company price is going to be like in the future. On the other hand technical analysis look at the stocks chart, peoples buying behavior etc. to try and figure out what the stock price is going to be like in the future. Earnings per share (EPS) ratio EPS = Net Earnings / Outstanding Shares There are three types of EPS numbers: Trailing EPS – last year’s numbers and the only actual EPS Current EPS – this year’s numbers, which are still projections Forward EPS – future numbers, which are obviously projections . Price to earning (P/E) ratio The P/E looks at the relationship between the stock price and the company’s earnings. The P/E is the most popular stock analysis ratio, although it is not the only one you should consider. You calculate the P/E by taking the share price and dividing it by the company’s EPS (Earnings Per Share that we saw above) P/E = Stock Price / EPS For example: A company with a share price of Rs.40 and an EPS of 8 would have a P/E of: (40 / 8) = 5 What does P/E tell you? Some investors read a high P/E as an “overpriced stock”. However, it can also indicate the market has high hopes for this stock’s future and has bid up the price. Conversely, a low P/E may indicate a “vote of no confidence” by the market or it could mean that the market has just overlooked the stock. Many investors made their fortunes spotting these overlooked but fundamentally strong stocks before the rest of the market discovered their true worth. In conclusion, the P/E tells you what the market thinks of a stock. It tells you whether the market likes or dislikes the stock. PEG (Price to future growth ratio!) The market is usually more concerned about the future than the present, it is always looking for some way to figure out what is going to happen in the companies future. A ratio that will help you look at future earnings growth is called the PEG ratio. You calculate the PEG by taking the P/E and dividing it by the projected growth in earnings. PEG = (P/E) / (projected growth in earnings) For example, a stock with a P/E of 30 and projected earning growth next year of 15% would have a PEG of 30 / 15 = 2. What does the “2” mean? Technically speaking: The lower the PEG number, the less you pay for each unit of future earnings growth. So even a stock with a high P/E, but high projected earning growth may be a good value. So, to put it very simply, we are interested in stocks with a low PEG value.
2016-05-21 00:22:54
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answer #2
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answered by ? 3
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I would open a halifax sharebuilder account. This is much cheaper than using a dealer.
Every time you buy shares with a dealer you will be charged a fee which is normally a minimum of £10. This is fine if you want to make large transactions, but if you just want to invest small amounts it is a significant chunk of your money.
Halifax charges £1.50 per transaction. The downside is you can only invest on 4 dates in every month. This is perfect if you are using it as a long term investment. Other advantages are that you can manage your shares online, and the website has lots of investor info.
2007-07-23 09:38:20
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answer #3
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answered by Anonymous
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Unless you have a seat on the exchange, you have to go through a stock broker
There are countless online brockerages, eg e-trade, suretrade..
Remember that if you buy a share for 100 and it rises to 110 you may still not make money if the transaction fee is 10. Compare transaction fees of different brockerages when you choose
2007-07-23 03:05:41
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answer #4
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answered by Hasski 2
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Hi you cant buy shares in every company it has to be a PLC (public limited company) You need to find a broker as you cannot buy directly the best broker i have used is Barclays brokers do charge for their service but barclay is only £2 per transaction.
2007-07-23 03:49:26
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answer #5
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answered by davetumalty 4
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Hi,
It's better for you to take some short-term courses on investing before buying stocks. You can also visit http://www.stockswatcher.info and get some useful insight into stocks trading. Good luck to your great financial future.
2007-07-23 04:08:06
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answer #6
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answered by Anonymous
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If you want to make money with binary options then this detailed educational articles and strategy guides. Go here https://tr.im/tHGvs
These will teach you to efficiently trade financial assets and increase your winning probabilities. You can implement these strategies at binary options brokers. The idea is to always choose legit and reputable brokers to avoid being scammed
2016-02-13 16:52:24
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answer #7
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answered by Anonymous
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Go to a stock broker or a discount broker. You could try Charles Schwab.
2007-07-23 02:54:35
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answer #8
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answered by hottotrot1_usa 7
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