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Brief Beginner's Guide to Buying Stocks

A guide on how to navigate the stock market for beginner students.

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You are a college student who spent her working this summer and you managed to put some money aside. Now you are at a crossroads: ** do I spend it all or do I invest this small amount of money ? Being a far-sighted person, you opt for the second option, thinking of investing in the ** stock market . It may seem like a complex and confusing idea, but the truth is something else. To launch yourself into this type of business, one of the things you will need is documenting yourself. In fact, ** stock market investments ** have been proven to be one of the best ways to grow your ** long-term ** wealth. For this reason, below you will find a short guide on how to take advantage of this opportunity step by step.

** Select a stockbroker **

First of all you will need to choose an ** online stockbroker ** in order to ** buy shares , which is preferably a ** brokerage platform ** that is easy to use and navigate. In order to create your profile you will need to create a ** bank account , from which you can then start buying shares in a few clicks and fund your account. However, if this method is not suitable you can always buy the shares directly from the companies.

** Search Stocks **

Very important tip: dedicate time to the necessary research, otherwise you will only waste money. But try not to get overwhelmed by the mountain of data and information, proceed keeping your eyes on one simple goal: ** look for companies you want to become co-owner **. Also focus on companies you know with which you have had a good consumer experience. With these goals clear, the research that follows will help you predict which actions will hit in the long run.

** Decide how many shares you want to buy **

The next step will be deciding how much to ** invest in stocks **. As a university student, your budget to invest will not be huge, but it is still essential to have in mind how much to spend. Initially, the advice is to start with little and accumulate over time. As you become familiar with the tool, you can start buying more shares. The amount of money you want to invest in each stock will also help you make a decision.

** Choose your order type **

Once you've bought your stock, it's time to decide ** what your order type ** will be. There are two choices: ** market order ** and ** limit order . The former means that your shares will be automatically sold when they hit the ** best market price , with no price parameters, while the second means that it will assign a price for your shares at which the trade is ** completed ** . Both of these orders have advantages and disadvantages, so it is good to have a full understanding before making a choice about them.

** Build your wallet **

The last step is to create your own ** investment portfolio . Therefore, after opening a brokerage account and learning the basics of stock trading, you can proceed with this business by investing more money. An important thing to keep in mind is that even experts in this sector experience ** moments of crisis . So the advice is to ** keep researching ** during this time and try to improve your portfolio. You'll be the happiest college student on campus if you master the trade!

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Kate

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