Buying or investing in stocks seems so intimidating right! But against all common beliefs that make you think that investing in stock market is the first step where you begin, it’s not so. The very first step on playing your cards right on Wall Street is to know what stocks are and how it works.
Even the pros of the stock market like Samuel W Meyer tell you to study the stock, their theories and practice playing them virtually before you even set your foot into the real game.
In America, the American Stock Exchange or AMEX, New York Stock Exchange and the National Association of Securities Dealers Automated Quotations are the three regularised stock exchanges where buying and selling of stock take place.
Before you get down investing in shares here are five tips that every professional, experienced player on the market will give you:
- Write-off your consumer debt: this is the initial step in analyzing your ability to invest in stock long before you even buy any. It is an important step that you must not ignore unless you are risking everything you got. The experts on the market tell you not even to think to buy the stock if you have an outstanding loan or credit lined up on your name or credit card. Why? Well because the stock market gives only about seven percent return annually as against your interest rate on loans that average around twenty percent. So it is advised that instead of using your income on investing in the market you spend in paying off your debt.
- Research and hire a good broker: it is as imp as buying the stick itself. A broker is the one who will make your call on the trading on the Wall Street. So he had to be an expert and experienced in trading on Wall Street with excellent market knowledge. With recent changes in regulation in the Wall Street, it’s likely that you get an online Broker. Your understanding of the stock must equal the knowledge of about your broker
- Understand the brokerage site well: with electronic trading on the go, you are most likely to make all your transaction electronically, so you must equip yourself will all the understanding of the brokerage website. Such trading website most of the time use bots to serve your request, but if you talk to a real person, they charge a higher commission for it. Also explore the entire site thoroughly in advance. Such sites provide you beneficial information about companies, how their stocks are doing and how likely are they to perform well. It will help you make a better investing decision.
- Must deposits funds beforehand: if your brokerage site is not a partner of your bank, then you have to deposit the amount into the brokers account in advance, before carrying out the trade. Make sure you know this process of transferring fund to your broker.
- Monitor your stock regularly not daily: you must understand that market works on a daily basis, ups and downs keep happening every hour. If you follow watching your stock every day, you will tend to be shifting from one stock to another. To make more money on a stock exchange, you need to invest and hold and not trade daily. That the key!
Hope, these very amazing tips to trade on Wall Street would help you make a better investment decision. Remember that market is very volatile, you cannot lay on for long without acting nor can you change every time with the market. Playing safe is essential, and patience is critical to get high returns on your investment.