Stock Buying 101: Top 5 Beginner Tips for Buying Stocks

In recent years, surveys have shown that more than half of Americans own at least some stocks. Some people buy and sell stocks individually, while others own them as part of retirement packages that they’ve put together.

If you’re thinking about buying stocks for the first time sometime in the near future, you shouldn’t jump into it blindly. Instead, you should learn the basics of stock buying 101 so that you’re ready to make some money while stock buying.

Those who don’t know how to buy stocks often make costly mistakes when doing it. You should avoid this at all costs if you can.

Here are five tips for buying stocks as a beginner.

1. Begin by Making Sure You’re Buying Stocks for the Right Reasons

Before we begin breaking down stock buying 101, we want to make one thing crystal-clear: Buying and selling stocks is not a get-rich-quick scheme. You’re going to need to be patient if you’re going to make any money buying and selling stocks.

We wanted to point this out because, far too often, people look at buying and selling stocks as a way to potentially make a lot of money in a short period of time. And it sometimes leads to them making big mistakes when they start messing around with the stock market.

If you’re not buying and selling stocks for the purpose of trying to make some money over the long run, you’re probably doing it for the wrong reasons. And buying and selling stocks might not be for you.

Read Also: The Pros And Cons Of Net Stocks Investing

2. Find the Right Online Stockbroker for You

As long as you’re committed to playing the long game when it comes to the stock market, you should be ready to get down to business and start buying stocks. But before you do, you’ll need to find the right online stockbroker.

Look for one that isn’t going to charge you much in terms of fees when you make transactions through them. Then, apply for an account through them and fund your account so that you can begin buying stocks.

3. Research the Stocks You Might Be Interested in Buying

Once you have an online stockbroker account all set up, you’ll be in a position to begin buying stocks. But prior to doing it, you’re going to want to do the necessary research on the companies that you’re interested in investing in.

You can do this by checking out the annual reports that different companies release. You can also do it by browsing through news articles about companies. It’ll make you feel more confident in buying stocks in them.

4. Start Small When Buying Shares of Stocks

When you go to buy your first stocks, you’re going to be asked how many shares you want to purchase. You should ideally try to start off small by only investing in a few shares so that you can see how the stock market works before investing more.

You might even want to buy just one share at the very start and track it over the course of a few weeks to get a better feel for the stock market. It’s always a good decision for beginners to take things slow so that they don’t get overwhelmed.

5. Celebrate Your First Stocks by Purchasing Certificates for Them

Want to make sure that you always remember the first stocks you bought? You can make this possible by purchasing stock certificates for them.

These stock certificates will make you feel like you really own a piece of a company. If you want to see what a stock certificate looks like, check it out here.

Stock Buying 101: Are You Ready to Get Started?

You can spend all the time you want to read about stock buying 101. But the best teacher with regards to the stock market is almost always experiencing.

You’ll learn a lot when you begin buying and selling stocks. Take the lessons that you learn and apply them in the future when doing stock trading.

Find out about some of the most common mistakes that first-time stock buyers make by reading the other articles on our blog.