Beginner’s Guide to Stock Trading

Many people view the process of buying shares as a difficult one. However, it is not as complicated when you have some background information to boot. Most things in life seem difficult in the beginning. But once you get the hang of things, it becomes easy. The same applies to stock trading.

Before getting into the market, it is essential to conduct comprehensive research. Investing in shares is as serious as it sounds since money is involved. If you are a beginner, we’ve got you covered. This article explains simple steps that enable you to enter the market and begin to shine.

How to start stock trading

First things first, you need to create a brokerage account which takes about a few minutes. Then, you need to load your account with cash and follow these steps below to find, choose, and start stock trading.

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Pick a broker online

Stock trading as a beginner may seem daunting at first. To avoid unexpected events, it is essential to use an online broker to help streamline the process. Once you find the broker’s website, you can start purchasing from it. Also, you have the option of using a full-service broker or buying directly from the company.

Research on the shares to purchase

Setting up and funding your online brokerage account happens in simple steps. However, finding out about the shares to buy is the challenging part. Here, you need to pay attention because that is where you will be putting your hard-earned cash.

Begin by selecting the shares and then research the companies providing them. Getting real-time data from the market news is ideal for your stock trading research. Also, ensure to keep your objective simple: look for companies you want to invest in.

Go through the annual reports of the selected company to understand the business and what goes on. Refer to your broker’s account for other information and analytical tools to assess the business. Some online brokers have tutorials on how to go about the tools.

Decide on the number of shares to purchase

There is no pressure in stock trading. That said, you shouldn’t feel inclined to buy a particular number of shares or fill your portfolio with shares. It is ideal to start small while you get the hang of it. Paper trading is one place to begin to ready yourself for the actual process. Then, you can buy a single share to help you master the trade.

Getting fractional shares is also ideal for new investors since it allows you to purchase a portion of a share.

Choose the order

The market comes with multiple trading moves and intricate order types. As stock trading beginners, it is essential to learn the basic types, including the market orders and limit orders.

Market orders

A market order means you will trade a share at the best current market price available.

Limit orders

If you are investing in smaller-company shares, a limit order is ideal. It lets you choose the price for executing your trade.

Improve your portfolio

Stock trading requires you to tread more carefully as a beginner. But once you get the gist of the process, you can start digging into other investment areas. Doing this will help you elevate your portfolio.


Knowing the best shares to buy as a beginner is essential. What’s more, understanding the right time for stock trading is also ideal. However, you can always choose the easy way out -through a broker to help you internalize the stock trading market. You will be amazed at how successful you become when you start small while learning through the investment process.

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