investing guide

Trading Stocks for Beginners

trading stocks

Trading stocks for beginners can sometimes seem like an overwhelming process. This simple step-by-step guide will show you just how simple it really can be. The example is very basic in nature involving a simple market order.

Step 1 - After you choose a stock to purchase you would simply click on the buy button for which ever online broker you are using.

Step 2 - After this you will then select how many shares of the stock you wish to purchase.

Step 3 - Next your online broker will give you an estimated cost for this purchase based on the current stock price. As an example if you wanted to buy 500 shares of a stock and the current asking price for that stock was 5 dollars your investment cost would be:

(500 shares x $5.00 = $2,500 dollars)

Step 4 - If all is what you expected then you would execute the order. Depending on how many shares you bought it could be filled instantly or take a few minutes to fill a typical order.

That really is all there is to being a basic stock owner. It really is a simple process, and anyone who has ever used online banking can easily understand online trading.

Please remember this is just a simple breakdown on how a simple stock purchase occurs. There are many other more technical ways to buy and sell stock using such things as limit orders. This was just meant to show you that buying shares of stock is really not a complex process.