Did you know saving for a rainy day won’t cut it anymore? If you want security far into the future, just putting your money in a savings account isn’t as wise as you may think. As inflation goes up, your buying power won’t keep up if your money is growing at too slow a rate.
Luckily, by purchasing stocks online, you’ll find a way to grow your savings. If you’re planning long-term or want to make some quick money now, consider investing in stocks.
Wondering how to begin? Read on to learn everything you need to start buying stocks.
Take Stock of Where You’re Starting
You don’t have to be wealthy to invest in stocks. In fact, you could invest a few extra dollars a week. Or you can save up and invest a large chunk at once.
When you buy stocks, you’re buying into a company. This tradition goes back to the 1600s. Dutch companies are credited as some of the first to sell shares to finance their operations.
Some platforms won’t allow you to join if you don’t have a minimum of $1000. But plenty others allow you to join with any amount of money you like.
Choose Who to Work With
Decide how much guidance you’ll want. You can choose a full-service broker. They can offer you advice and help, and even strategy.
But they’ll also charge for this advice. They will often charge a fee each time you buy or sell a stock.
This can range from $2-$10. Be aware this can add up.
If you want a more DIY approach, you can go for robo-advisors who help you build a portfolio. They will recommend stocks based on your interests.
You can also work solo, using apps or online platforms that don’t offer advisors.
Purchasing Stocks Online
Decide which stocks you want to purchase. Do you want to go high-risk and invest in a new company?
Or do you want to go slow and steady? In that case, invest in a trusted company and hold on to your shares for longer.
You’ll also want to consider diversifying your stocks. That way you are safer should a company go bust or suffer losses.
At monexsecurities.com.au, you can find a great rundown on investing internationally. Expanding your reach is a great way to diversify.
When you buy stocks online, you have control over how much you’re willing to spend. You can opt to do a market order. In this case, you buy stocks at the price it costs right now.
But the stock market can change rapidly. Say you told your broker to buy shares this morning. If they get to it by evening you could end up paying more than you expected.
You can also use what’s called a limit order to prevent this. You create a minimum and maximum price range. If the stock you were interested in exceeds the amount you’re willing to pay, you or your broker will pass on buying.
Start Investing Today
Purchasing stocks online doesn’t have to be complicated. Don’t let the Hollywood movies make you need to be an expert to start. With a little research, you can buy stocks and manage them exactly how you like.
You can consult with professionals or do it all on your own. Either way, you’ll be creating opportunities to grow your wealth.
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