If you ask “How do I buy stocks?” today, then I would like to tell you some of my tips.
When I started thinking about how to buy stocks online I was looking for a way to really buy them. I mean that I started looking for the 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 have started to use the Internet to offer their services. I checked some web sites of these brokers and also went to discussion forums to read experiences from other clients.
Finally I chose one broker. I opened a brokerage account, and 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 browsers and web pages. Also account management was web browser based.
There are much better trading platforms for traders today. You can install one on your computer and trade online. It is also already possible to use some Internet based platforms when you are on the move – you can use mobile phones or tablets to trade stocks online anytime with Internet access.
And what was my experience? I learned the answer “How do I buy stocks” online using my online broker. So I started to decide what were best stocks to buy now. I thought that was enough.
And what was the result of my activities ? I did some good trades, I made some money. But then I bought one stock that dropped a lot. And I had no trading rules so I did not know what to do. Finally I deemed my loss unacceptable and I closed this trade and realized a significant loss.
This experience pushed me into a bad mood. But it was very good for my future steps. I realized that I must learn how to buy stocks online and make money. I went through a learning process and today I trade on my portfolio but also I provide coaching on how to buy stocks.
How to buy stocks online and make profits
Stock trading or stock investing is not about knowledge in how to buy stocks online using stock trading software only. You need much more knowledge. Here are my tips that I think are necessary to learn.
You have to learn how to make good chart analysis. What are good chart analysis tools? What type of charts will you use ?
This part helps you to define how to apply your knowledge of chart analysis practically. Ho do you find your best ticker to buy now? How do you find best entry and exit levels for buy or short sell? Where to place stop loss?
The system for money management and risk management
Stocks trades are not only about best 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 want to analyze charts you will need good chart analysis software . There are plenty of possibilities available. I use AmiBroker and recommend this software. It is cheap and it is very rich in features.
Best stock broker
You need a good broker to be satisfied with your trading results. There are a lot of online brokers so take your time and do your research. Check experiences of other users. Some brokers are better for stocks, some are specialized for options or futures. Forex brokers are a specific category. I would like to recommend that you select well known brokers with history. Small and offshore companies could be very risky.
Stock trading journal
When you start testing your 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 the 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
The trading books are an important part of the learning process. If you want to learn some good knowledge, select best books for traders and read them. Be aware, there are a lot of books about trading available. And a lot of them are not good, so be selective.