How do I buy stocks

Tips how to buy stocks online

When I started thinking about how to buy stocks online I was looking for way how to really buy them. I mean that I started looking for best stock broker and how to use its stock trading platform.

It was in 2001 when I started to think about how do I buy stocks. These days discount online brokers started to use Internet to offer their services. I checked some web sites of these brokers and also went to discussion forums to read experiences of another their clients.

Finally I chose one broker. I opened brokerage account , put some money there. I started to learn how do I buy stocks online using their web based forms. These days it was possible to enter orders through web browser and web pages. Also account management was based on web browser.

There are much better stock trading platforms today. You can install it to your computer and trade online. It is already possible to use also some Internet based platforms when you are on the move - you can use mobile phones or tablets to utilize buying stocks online anytime with Internet access.

And what was my experience ? I learned "How do I buy stocks" online using my online stock broker. So I started to decide what is best stock to buy now. I thought that is it enough.

And what was result of my activities ? I did some good trades, I made some money. But then I bought one stock who dropped a lot. And I had no trading rules so I have not know what to do. Finally my loss was unacceptable and I closed this trade and realized significant loss.

This experience pushed me into bad mood. But it was very good for my future steps. I realized that I must learn how to buy stock online and make money. I went through learning process and today I trade on my portfolio but also I provide advice how to buy stocks for my clients.

How to buy stocks online and make profits ?

Stock chart analysis

You have to learn how to make good stock chart analysis. What are good stock analysis tools ? What type of charts will you use ?

Stock trading strategy

This part helps you to define how to apply your knowledge of stock chart analysis practically. Ho do you find your best stock to buy now ? How do you find best entry and exit levels ? Where to place stop loss ?

Stock trading system for money management and risk management

Stock trading is not only about stock picks. It is also about money management . It is very important to have risk management rules for selecting best stock picks with best risk reward ratio.

Stock analysis software

When you will want to analysis stock charts you will need good stock analysis software . There are plenty possibilities available. I use Amibroker and recommend this software. It is cheap and it is very rich in features.

Best stock broker

You need good stock broker to be satisfied with your trading results. There are a lot of online stock brokers so take your time and do your research. Check experiences of other users.

Some brokers are better for stock trading, some are specialist for options or futures. Forex brokers are specific category. I would like to recommend you to select well known brokers with history. Small and offshore companies could be very risky.

Stock trading journal

When you start testing of your stock trading strategy you have to write as much as possible about every trade you do. Also when you start real trading, keep your trading journal .

It is good to check it every 6+ months and go through trades you did. You have to check what you did correctly and/or if you made some mistakes. It is normal to make mistakes, but it is important to learn from them. And to not repeat them in the future.

Stock trading books

Stock trading books are important part of learning process. If you want to learn some good knowledge, select best stock trading books (like these I recommend) and read them. Be aware, there are a lot of books about stock trading available. And a lot of them are not good, so be selective.

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