So you are thinking about buying stock in one of the companies mentioned on this site (or any stock for that matter) but you don’t know where to start? Well let’s start with a couple of questions to see if you are ready to get in the stock market game:
1) Have you thoroughly researched the stock(s) you are thinking about investing in?
2) Have you decided how much money you want to invest? Also, have you taken Stocks should be a PART of your total investment strategy, not ALL of it. You are taking a risk with the money you invest in the stock market so please be sure you understand all of the possible outcomes (even the negative ones).
3) Have you decided a strategy for how you want to invest?
Let’s go through and address each of these questions one by one. The first question asked if you have done your research on the stocks you are looking to invest in. Based on the fact that you are on this site, I am going to assume that you are interested in investing in the various 3d printing technologies. If this is the case, I have done my very best to provide you with all of the information on these stocks so you can make an educated decision as to what companies to invest in. If you have not already done so, please check out the List Of 3d Printing Stocks I have compiled and read up on each company. It is very important to feel confident in the company you are investing in. Billionaire Warren Buffet is quoted as saying “‘If you don’t feel comfortable owning something for 10 years, then don’t own it for 10 minutes.”
Next you need to look at how much money you have to invest in the stock market. This is actually a very easy number. Before you are going to invest any amount of money you need to ask yourself a question: If you woke up tomorrow and all of that money was gone, would you still be able to go about your life (Pay your bills, eat, pay for gas, etc.).
The last thing you need to figure out is what your strategy will be. My personal recommendation is to buy stocks that you feel will gain value over the long term. Again I will refer to Warren Buffet who said “Always invest for the long term.”
How and where to Buy Stocks
Now the hardest part for me when I first got into buying stocks was getting over the initial intimidation of the whole process. Buying stocks sounds like a big, scary deal… but it’s not! It’s actually incredibly easy. There are a two main ways to go about buying stocks. The first way is to use a full-service brokerage. These brokerages manage your accounts and cost a lot more. The simplest, easiest and cheapest way to go about buying stocks is to get an account with an online discount brokerage. These are online brokers (such as TradeKing, Etrade, and Scottrade) that allow you to buy and sell stocks yourself. They usually also have plenty of online tools such as access to charts and online communities to talk about various aspects of the market.
The main advantage to an online discount brokerage is that they do not have to pay people to manage your account. This allows them to keep your cost of buying and selling stocks way down. Most of these sites charge a flat rate per trade and some of them have minimum amounts of money you must put in your account.
My favorite discount brokerage site is . I have found them to have the cheapest rate per trade at $4.95 per trade (most of the other sites I checked out charged $7 or more per trade). This is good because the less you spend per trade, the greater your profits will be per trade. They have no minimum balance to open an account which is great if you are just starting out and don’t have a ton of money to invest. This is one of the reasons I was so afraid to get involved in the stock market. A lot of sites have a minimum deposit requirement well above what I was ready to invest. TradeKing has no minimums. Some other things that I liked about are the free tools (such as charting tools and an iPhone app) that they offer you to analyze your stocks. These come in handy from time to time. Check around and compare the different brokerages and see what is appealing to you. Make sure you consider the cost per trade, minimum deposit, reputation, and ease of use.
Now you are ready to open an account. You will need to fill out all of your personal information. You will also need to provide information for tax purposes as all brokerages are required to report to the IRS. Once your account is opened you will be asked for your bank account information so you can deposit money into your account and get started. This also allows them to pay you when you sell your stocks!
You are well on your way to investing! You have the information you need to get started and you are now ready to jump in. I recommend you stop waiting for the “right time” and . There is no cost to open an account and you can start with as little or as much money as you want. I started off with $35 (the cost of going out to dinner) and grew from there.
Remember: As long as you are sitting on the sidelines, you are not making any money! Give it a shot and invest in your future!Google+