Investing in the stock market is not very hard but you do have to pick an online broker and open an account. There are many online discount brokers and one of the best for beginner investors is TradeKing. This is because their fees are low and there are no account minimums.
Generally, if you have less than $1,000 to invest in stocks, I would say don't bother but with TradeKing you can open an account for what you have, no matter how little it is. This makes them a great choice for anyone who wants to set up their first stock account online.
TradeKing (Now Ally Invest) has won all sorts of awards from Barron's and SmartMoney for their customer service which can be very important for someone who is just starting out and has questions. They also offer stock trades at $4.95 which is lower than almost all other online brokers. A really good thing is that broker assisted trades are at the same $4.95 rate which is WAY lower than other brokers. A "broker assisted" trade is when you actually talk to someone on the phone and they place the trade for you instead of you doing it all by yourself online.
Whether you pick TradeKing or someone else, you will need to put money in that account which is called "funding" the account. Usually that is done by wiring money from your bank to your new broker account but you can also send a paper check to them if you like. Either method of funding is safe and all brokers will have instructions on how to do it.
Once your money is credited to your stock account (it will obviously take longer if you send a check), you will then be able to immediately start buying and selling stocks. Even though you may be a stock market beginner, you need not be intimidated by all the stock market advice that everyone wants to give. It is quite simple really - when you buy a stock it is either going to go up or go down.
You always have to be prepared to lose money in stocks because it can happen with any stocks you pick. No stock goes up all the time and your investment strategy should be to find companies that are solid, have good products that people like, and are well poised to make money in the future. Invest money for the long term if you want to have the best chance of making money and overcoming all the ups and downs the market goes through.
You always have to be prepared to lose money in stocks because it can happen with any stocks you pick. No stock goes up all the time and your investment strategy should be to find companies that are solid, have good products that people like, and are well poised to make money in the future. Invest money for the long term if you want to have the best chance of making money and overcoming all the ups and downs the market goes through.
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