Start Trading

For those who’ve wanted to buy and sell stocks, starting a brokerage account can be done fairly quickly and easily. Just keep in mind:

You can be a winner…or lose a lot.

1. Open an Account

After researching different online brokers, I went with Scottrade. $7 to buy shares, $7 to sell. No shenanigans. You’ll need at least $500 to open an account.

 

2. Make a Plan

There are thousands of stocks listed on U.S. exchanges, so plan on trimming the list down a bit. The best place to start: ask yourself how much are you willing to invest? I haven’t put more than $4,000 in a stock, so I look for stocks priced less than $10/share. You can use the profit calculator below and Google’s stock screener to develop a realistic plan.

  • Profit Calculator

Other major factors I consider when choosing a stock:

    • Market Cap. of at least $1 billion
    • No ADR‘s

3. Research, then Buy

After finding stocks in your price range, do a little ‘qualitative analysis‘ and look at news articles and charts for each stock. Get a feel for where you think the company will be headed during the time you will be buying/selling. ┬áIf the fundamentals are good, buy in.

 

4. Manage the Account

A Google Docs spreadsheet can help keep your buying/selling organized. You can use the template I use, make your own, or just use the info provided on your brokerage account.

Google Docs Template

 

 

For more financial tidbits, click over to Finance Talk.

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