10 First Step To Investing in Stocks

Posted by admin on Jan 6, 2010

Stock investing is one of the most attractive investment tool on the planet. Why is it attractive? Because of its revenue. This investment tool provide big revenue while though overshadowed by the big risk. Well, accordance to the rule of investment, High Risk High Return, stock investment is promising enough in your personal financial treatment. Especially to those who have bigger portion of fund to invested.

But the problem is that some people are still feel uncommon or even lay on this investment vehicle. There are 10 easy step to investing in stock market.
  • Visit some of the securities company's website. Focus on several leading securities firms that have good track records, then contact via telephone or e-mail to the security company to know the mechanism of floor trading on the stock exchanges in general.
  • Make an appointment with the account officer of the securities company. Appointments can be held in your place or you can easily come directly to the office of the securities.
  • Compare some of the pros and cons of each securities firm, make sure to select the securities firm with a competitive fee, with the support of qualified research team.

  • Register as customer in that securities company. Then select and prepare of the initial capital to invest and / or "play" the stock.
  • Choose a few stocks to buy. My advice is should select blue chip stocks, the stock has large capitalization and good performance history. Meanwhile, to facilitate monitoring of stock price movements, monitor a maximum of 5 blue chip stocks just prior.
  • Do not force yourself to directly buy shares after depositing funds into the securities firm, be patient and wait a moment until the targeted stock price corrected, then came in and bought these shares.
  • If you are an investor typical, no need to bother to monitor the movement of stock prices fluctuating. But if you are a trader typical, who is not willing the share price falls a bit, then you should regularly monitor the movement of prices of the stocks you choose.
  • If you are a trader, do not forget to always hone your knowledge by always a read the company's financial statements regularly, research reports from securities firms, following the rumors and economic news, following the stock list, and follow some of the stock trading courses.
  • It is noteworthy, that the recommendations issued by various analysts of securities firms and / or mailing list is not obliged to follow. The analysis is only a tool for you to take a decision. All decisions back to you, whether you will follow the market or will be contrarian to the market.
  • The key in trading is emotional mastery and self-control of fear and greedy in doing sale or purchase of shares (timing factor). As a trader, timing factor will affect for the size of the profit obtained.

Happy investing

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