There are three absolutely vital things to think about when buying and selling stock. They are firstly research, secondly research and thirdly research. The outsider view of the stock market is; “Wow what a crazy place”! Watch Bloomberg TV and all you see are different scenes of the trading floor with guys yelling, waving, buying and selling stocks. Some people are making money during all this craziness but how do they do it? Could the average guy in the street make money with stock market buying and selling?
Firstly what is all this buying and selling stock for? The stock market is all about transferring money between individuals and corporations. Corporations are selling stock in order to bring in cash. The first time a company decides to sell stock is because it needs money to fund its growth plans. So the company issues stock certificates. Typically a certificate is $1.00 in face value. These certificates represent ownership of a piece of the company.
When buying stock you are becoming a part owner or shareholder. The big stockholders with the most stock certificates will sit on a company’s board of directors and make the big decisions about the company’s future. When you are buying and selling stocks you are buying and selling voting rights in that company.
Never go into buying and selling stock in a company without thorough research. The first thing you want to know is what they are all about and find out their track record for making money. You need to research and predict the future market for the company’s’ products and services. Is it on a path of growth rather than loss, before you invest your money?
Then you need to research the most suitable broker and brokerage account for your needs. A broker is the steward of your money as long as it is in their account. Make sure it is a brokerage that you can trust or they might take your money and run.
The stockbroker is the middleman in the buying and selling of stocks. They provide the administrative system for you, their client to deal in the available stocks at prices you are willing to deal at. You can determine the amount you are willing to pay per share.
By trading in stocks online you can be your own broker, making all of your own buying and selling stock decisions. There are many stock trading platforms that let you to do this and they will charge you a small fee for every transaction you make.
Nailing a deal for stock market buying and selling is like shooting a moving target because stock prices are varying continually while the stock market is open. You may have to wait until your target stock reaches your dealing price. The moment it does your broker will execute the trade under your instruction and take a fee for doing so. The process is exactly the same for both buying and selling stocks. The aim of course is to buy low and sell high at a profit. Buying and selling stock online makes this process very quick and easy to understand.