Buying Stocks: How and Where to Start Investing in Stocks
If you are interested in the stock market you will surely have wondered how to buy shares and sell them , that is, how to do stock trading . To trade on stocks , some steps are required that we will explain in this guide.
First of all, stock trading must not be just a passion, but an in-depth study of each stock you bet on is required to invest your money in shares .
A good financial education to start playing on the stock market should be the basis of every form of trading , therefore also in the currency market ( Forex ), commodities, cryptocurrencies and so on.
In this article we are going to see how to invest in shares and therefore how to buy and sell shares , i.e.
How to Buy Shares and Where?
To invest in shares and therefore to buy the shares (or perhaps to sell them) you need to contact a financial intermediary. It can be your bank or a broker .
In the first case, you have three ways to be able to do stock trading , that is to contact your bank by phone, person or access your online bank account . From the latter you can basically do online trading on shares .
By broker we mainly mean two figures. The first is a person, i.e. a financial advisor who is licensed to do this job. He will take commissions and often works at a bank or investment fund.
On our site or in general when we talk about online trading , when we hear about brokers we mean a financial brokerage company, that is a Forex / CFD broker, which allows the trader to be able to buy and sell shares (but not only) directly from home. In this case we are talking about buying shares and selling them online .
So before you can buy and sell stock exchange products , including investing in shares, you need to choose the right financial intermediary. We at Meteofinanza.com have compiled a list of the best Forex brokers that also allow trading on stocks . All of these brokers are regulated and licensed.
One of these is certainly eToro , the leading social trading broker who has convinced more than 20 million traders to choose its platform! You can try its demo account for free and without paying any money. For you immediately $ 100,000 virtual to be used on the whole platform!
Investing in Stocks: Meaning
When you buy a stock , you are essentially buying a slice of a publicly traded company . Investing in shares therefore means buying a part of a company in the belief (and hope) that the share price will rise and thus obtain a capital gain.
Once you buy a share you become a shareholder in the company and with a good amount of shares bought you may be eligible to attend shareholders' meetings and the right to vote.
When the company detaches the dividends , the holders of shares of the company in question will receive the money. Therefore, those who intend to start a long - term strategy it is important to evaluate the "dividends" item and understand what is the amount you will receive if you own the shares .
Not all publicly traded companies pay dividends, those who do mean they are healthy and in good economic condition. Giving a dividend means distributing a portion of the company's profits to shareholders , ie those who hold a slice of the market .
When you sell a share , it means that you are selling your shareholding to that particular company. If you think a stock could go down, you could opt for short selling .
In this way you can make a profit from the decline in the value of the shares on the stock exchange .
Buy Stocks online
Buying and selling stocks online means basically not having to go to a bank branch . So you will not have to leave the house, face the daily traffic, search for a parking space and queue at your bank office . All these drawbacks are not present in online trading .
Trading online is therefore more convenient even if you want to buy and sell shares within the day . Going to the branch could jeopardize your short-term strategy . If, on the other hand, you are a drawer investor , that is, if you intend to buy shares and keep them for a long time, even years, timeliness is not essential.
Buying and selling shares online is especially suitable for those who have an intraday trading strategy , i.e. those who intend to open and close a position on the stock market during the same day, therefore in a single trading session .
Shares to Buy with CFDs
An alternative to the classic purchase of shares are CFDs . With this financial instrument the trader is not really owning the stock , but is just speculating on the rise or fall of the price. As there is no "physicality", the trader can therefore indifferently buy or sell the share .
CFD stands for " Contract for Difference ", which can be translated into " Contracts for Difference ".
With a long position the investor is buying stocks , conversely with a short position he is selling stocks .
Compared to the classic investment, buying and buying shares with CFDs is cheaper and you can take advantage of additional services. With CFDs you can in fact invest using the financial l eva . It allows our investment to become more substantial, how? Let's see it right away with an example.
With a leverage of 5: 1, an investment of € 100 would become € 500. The remaining 400 € are "lent" by the broker who takes them back at the end of the operation. To be able to open positions of this type it is necessary to have sufficient economic availability, that is, you must have margin .
Both profits and losses will be related to the investment that has been leveraged , so in our example 500 €. Care must be taken because losses could wipe out the invested capital and translate into substantial losses. For this reason it is always advisable to insert a stop loss , which allows you to stop losses before the capital is exhausted.
Buying Stocks Today: What are the hours?
The exchange follows very specific hours and is not open 24 hours a day like Forex . Each stock exchange follows the hours imposed by the national stock exchange . For example , the Italian Stock Exchange is open from 9 to 17.30 from Monday to Friday; while the New York stock exchange ( NYSE ) opens trading at 3.30 pm Italian time and closes them at 10.30 pm. The oriental stock exchanges , such as that of Tokyo ( Nikkei ), are open during the Italian night.
We can see that the trading period on stocks is limited compared to Forex . With good portfolio management and therefore diversifying your investments you will be able to trade on the stock market for an extended time.
In fact, the purchase of European, American and Asian shares in the same portfolio leads the trader to have an almost uninterrupted operation. The breaks are not that bad .
When an exchange is closed, such as on the weekend, a trader can find out more about the shares he owns, wants to buy, or wants to sell short.
Start buying Shares
Anyone who decides to start buying stocks is a novice trader who wants to invest in the stock market. How to start buying stocks?
First you need to have a financial intermediary who allows you to buy shares. Not sure who to look for? We help you! You can invest in shares in the bank, but also through stock brokers , which act directly online and therefore allow you to invest from the comfort of your home, often without commissions!
How to buy shares without intermediaries
So no, you can't buy stocks without intermediaries , but that's not bad news.
In fact, many financial intermediaries are minimally invasive , i.e. they allow you to act independently on the trading platform they offer, often for free, as in the case of eToro and Plus500 .
Platforms for investing in stocks
There are many stock brokers , for example Plus500 is an intermediary that offers the possibility of trading with CFDs on a huge number of shares from many parts of the world. Do you want to try it? Today you can do it for free!
Alternatively, remember that a suitable platform to buy shares directly and not necessarily using CFDs is eToro . In fact, on eToro it is possible to buy shares without commissions and become shareholders of listed companies.
How to do? You can buy shares directly on the eToro platform, at the time of purchase remember to deselect the financial leverage , or when it asks you which multiplier you want to apply enter X1 .
This results in a direct purchase of shares and not the use of CFDs. This option is valid, however, only in the purchase phase and not in the sale phase. On eToro, the sale of shares is always with CFDs , therefore with financial leverage and without direct ownership of the share.
Do you want to buy shares on eToro today? Access the platform now by clicking below!
Your capital is at risk. Other fees apply. For more information, visit etoro.com/trading/fees
Best Bank to Buy Stocks
As you may have guessed, for us buying shares through the bank is not the best possible way, given the fees present. Especially if you are a trader who does not just want to buy shares, but diversify across multiple products, it is not convenient to think of the bank as your intermediary.
Clearly it is our point of view and it is not an absolute truth. If you disagree, freely express your opinion in the comments!
How to buy oil stocks
You can buy oil shares on the different trading platforms that we have listed, without necessarily having to invest in oil .
In fact, one way to take advantage of the rises and falls of this commodity is not simply to invest directly in oil itself, whether Brent or WTI .
Throughout the world, but also in Italy, there are various oil-related stocks. In Italy, for example, in the FTSE MIB we find Eni, Saipem and Tenaris , which are considered oil stocks.
These companies work in the oil field, i.e. in production, transportation and even storage. The speech for Tenaris is slightly different , in fact the company is the world's largest producer and supplier of pipes and services for the exploration and production of oil and gas.
The performance of the three Italian companies listed above is strongly influenced by the price of oil, even if other factors intervene, such as the trend of the national stock exchange and the Italian economy.
Posting Komentar untuk "Buying Stocks: How and Where to Start Investing in Stocks"