So you are at the point where you are thinking you'd like to grow your portfolio, and you think that to buy stock is the way. No one will tell you that to buy stock isn't risky business, and that is simply because it really can be.
At the same time, of course, the reward can be high. Buying stock can be an easy thing, but before you dive right in, do yourself the favor of following a few steps.
Begin by researching the stock that interests you. The internet is a good start before you buy stock. As well, periodicals, and specialized TV stations give sound advice. The more adapt you become at this, the more you develop a feeling for a particular stock.
When you start to feel comfortable, and feel like you are at a point where you can buy stock for the first time, you will want to open an account with an online broker. This is becoming the most common way to buy stock, but if you feel like you might need a bit more assistance, you might want to try a full service brokerage instead.
This is the best place to start. You will be assured of experience and confidence, making the purchase of the stock relatively painless.
Ask the broker for information about the stock. For example, how much growth has the stock seen over the last year? How well has it done over the past five years? Ask about the company that is selling the stock. How well are they doing compared to other similar companies? Inquire about the fees to buy stock and the selling commission.
After you have made your stock purchase, you are far from done. I would venture out to say that the real important part starts now. You need to carefully examine and watch your stock.
You will be able to check your stock purchase daily so that you can properly evaluate its performance. You will hope, of course, that it will do well, but if it doesn't you will quickly need to learn to cut your losses and move on.
The stock market can be a great way to earn money and save towards retirement, but it needs to be done with prudence. Always perform proper due diligence before you buy stock, and after purchasing make sure you are aware of what your stock is doing so you can make the correct decision.
Looking to buy stock? Make sure you read James' buy stock guide now!
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