1. Choose an online brokerage
Investing in stocks is so much easier than it use to be. Go online and select a brokerage of your choice. Fill out an account application, provide proof of identification. Finally select how will you be funding the account via electronic funds transferred from your bank, wire transfer or mailing in a check .
2. Review brokerage platform
After you receive confirmation that your new brokerage account is funded, now it’s time to invest! But how?? It is recommended to review the brokerage platform and take a tutorial. Here is where you will learn where the “buy” and “sell” button are, how to review charts and fundamentals and how to view your overall account.
3. Research and Analyze
This is your portfolio that your are creating and it would be best to look for the companies you know, consume or would want to become a part owner. Now that you have identified these companies, do some research. Look into the company’s recent news, annual report, conference call transcripts, SEC filings and quarterly earnings updates. This will allow you to learn more about business and how to manage your portfolio.
4. Buy, Sell, Manage
The moment you have been waiting for….you did your homework, know your risk, narrowed a few companies and your ready now to go out there and plant your seed!