How to Trade Stocks

Step-by-Step Guide

1. 1

   Step 1: Consider getting a broker.

   The easiest way to trade stocks will be to pay someone else to trade stocks.
   
   There are a number of well known stock brokers, and you should not have trouble finding someone who can place trades for you and give you advice.
2. 2

   Step 2: Find a website or service to use to trade stocks.

   For people who are especially determined to make it on their own, there are a number of websites that will allow you to trade online.
   
   Acting as your own broker will give you a greater amount of control, and you’ll save yourself a little money.
   
   E*Trade, Fidelity and TD Ameritrade are some of the more popular websites to use.
   
   Pay attention to the services offered by some of these companies.
   
   Some offer extra advice, tutorials, debit cards, mortgage loans, and other benefits.
   
   Weigh the benefits of each service and decide what is best for you. , When you trade stocks, you can buy or sell stocks with a market order.
   
   This means it will be traded at the best available price at that point in time.
   
   It is important to remember, however, that it takes a little while for a sale to go through, and if the market is changing very quickly, you may get a very different price than the one you originally saw.
   
   Use stop market orders.
   
   Also called a stop-loss order, this is similar to a market order except that the stock will be sold when it reaches a particular price.
   
   This is often used to avoid a loss in a falling market. , These can be used to set an upper or lower limit at which a stock could be bought or sold.
   
   Instead of a set price, it is a fluid price which is determined as a percentage of the current price.
   
   It is an extremely useful tool which can protect you from huge market swings. , Another option available to you is to place limit orders.
   
   These create a certain price window outside of which your stock will be bought or sold.
   
   This can help you get good prices.
   
   There is often a special commission on this type of order.
   
   Use stop-limit orders.
   
   This is a limit order which executes when a specified stopping price is reached.
   
   This provides even more control but, as with limit orders, you take the chance that your stock may not actually sell. , Many brokerage firms offer accounts which can store your money between trades and pay you a small amount of interest in the meantime.
   
   This is very useful and should be factored into your plans if you are using an online service.
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   Step 3: Use market orders.

4. 4

   Step 4: Use trailing stops.

5. 5

   Step 5: Use limit orders.

6. 6

   Step 6: Store your money between trades.

Detailed Guide

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