How to buy stocks and when
1. Using a Brokerage
The most common method to buy stocks
is to use a brokerage. Brokerages come in two different flavors. Full-service
brokerages offer you (supposedly) expert advice and can manage your account;
they also charge a lot. Discount brokerages offer little in the way of
personal attention but are much cheaper.
At one time, only the wealthy
could afford a broker since only the expensive, full-service brokers were
available. With the internet came the explosion of online discount brokers.
Thanks to them nearly anybody can now afford to invest in the market.
2. DRIPs & DIPs
Dividend reinvestment plans (DRIPs) and direct
investment plans (DIPs) are plans by which individual companies, for a minimal
cost, allow shareholders to purchase stock directly from the company. Drips are
a great way to invest small amounts of money at regular
intervals.
The most common method to buy stocks
is to use a brokerage. Brokerages come in two different flavors. Full-service
brokerages offer you (supposedly) expert advice and can manage your account;
they also charge a lot. Discount brokerages offer little in the way of
personal attention but are much cheaper.
At one time, only the wealthy
could afford a broker since only the expensive, full-service brokers were
available. With the internet came the explosion of online discount brokers.
Thanks to them nearly anybody can now afford to invest in the market.
2. DRIPs & DIPs
Dividend reinvestment plans (DRIPs) and direct
investment plans (DIPs) are plans by which individual companies, for a minimal
cost, allow shareholders to purchase stock directly from the company. Drips are
a great way to invest small amounts of money at regular
intervals.
Here are some examples of some online brookers: TD Ameritrade, Etrade, and
Scottrade.
Scottrade.
For example I made some changes to someone else's portfolio like an online
Brookerage would do. Here are the results:
- Sell all of 0. no change made.
- Buy 250 GOOG. lost $10.02
- Buy 250 TSLA, Gained $10,715.23
- Buy 2 BRK-A, lost $8,385.05
- Buy 5 KKD, Lost $
- Sell 70 EEEAX
- Sell 35 Fabgox
- Sell 50 GU
- Sell 11233 YYYYYY
- Sell 35 Rue