Trading stocks can be intimidating if you aren't familiar with the process, but that doesn't mean you can't learn how to do it. If you want to give stock market trading a try, get started here with this beginning guide to stock market trading.
What Trading Really MeansWhen applied to the stock market, the term trading can be a little misleading. You don't actually trade stocks like you would baseball cards. In the case of stocks, trading translates to buying and selling.
The Easiest Way to Trade StocksOpening a brokerage account is the easiest way to trade stocks. You can choose to work with an individual broker or a firm. There is typically no fee required to open an account, but you will need an initial deposit. Required deposits will vary depending on where you go.
After You Open a Brokerage AccountAfter making your initial deposit, you can choose which company or companies you want to buy stocks in. If you are inexperienced, it is best to start off with only a few shares so that you can acquire a diversified portfolio. Your broker will be able to tell you how much a share sells for and will also be able to complete the transaction for you.
The broker will then deduct a commission from your account as a fee for his services. The shares you bought will be stored in your brokerage account until you decide to sell them--a task your broker will handle for you for a fee.
Stock Market Trading Without a BrokerYou don't need a brokerage account or a broker to invest in stocks. Many companies have direct stock purchase plans that provide the opportunity to buy stock directly from the company. When you want to sell the shares, all you have to do is mail the stock certificates to the company's stock transfer agent
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