How to Buy Shares
The idea of buying shares is pretty thrilling, isn’t it? After all, it is through share dealing that many people can build massive fortunes very quickly.
While share dealing is often shown on the TV and in films to involve frantic activity and the waving of papers in a stock exchange, for most people share trading is now something that is carried out comfortably online.
Find a Reputable Broker
The first step is to find a reputable broker that you are happy dealing with. There are plenty of stockbrokers around and they each offer different types of service and fees. It is, therefore, important to find one that matches your needs in both respects. One UK share dealing platform which has won many awards for its user experience and trading value is the Vantage Fund & Share Account from online broker Hargreaves Lansdown. If you live in the US then you might want to try discount broker TradeKing.
In many cases, you can expect to be able to deal instantly online or by phone, as well as having the option of using a postal service. Be sure to check out the reviews of other people who have used their services, to see if there are any issues you need to be aware of.
Try Out Their Site
For most of us, buying and selling shares online is the most convenient way of investing in the stock market. Some online brokers will offer a free practice section that involves using virtual money until you are fully comfortable with the process involved in share dealing.
Choose Your Shares
Of course, the next stage is vital. This is because you now need to decide which shares to buy. To do this you will need to do a fair amount of research into the current market conditions and the best options around.
Some share dealing services will give you a range of tools which you can use to check out the current best shares to invest in. Otherwise, you can sign up for newsletters, download free share picking guides, read financial news sites like Bloomberg and find out which companies are worth investing in right now.
Make the Transaction
The part where you actually make the transaction and buy some shares is the easiest and quickest part. This is especially true if you use a slick online service. In no time at all you will be the proud owner of the shares that you were interested in.
You will want to be completely sure about what you are doing before you buy them, as there is no going back once you make your decision.
Keep Track of Them
Once you have bought the shares you then need to keep track of them. This is vitally important, as prices can rise or fall very rapidly. If you don’t have a lot of free time to monitor the market regularly then you might want to get some automatic notifications set up, so that you get advised whenever there is movement above or below a certain level.
Alternatively, you could choose to buy shares that aren’t usually particularly volatile. In either case, you need to be ready to move if the price moves a lot. This means that you need to set your limits at the outset and then keep an eye on them. You will also want to know how to sell the shares when the time comes.
As we just saw in the last point, it is also important to be able to sell your shares whenever the time comes to do this. You certainly don’t want to be scrambling around trying to sell them when the price is dropping like a stone or you want to quickly take advantage of a big increase.
To make sure that you are comfortable with this side of the deal, you should check at the very start what the sales process is like. If you are using a reputable broker then it should be just as easy as the process of buying them was.
As we can see, buying and selling shares is a lot easier now than many people think. As long as you make some smart decisions, it can also be a wonderful way of investing your money.
Are you tempted to do some share dealing?