Only fund your account with as much money as you can afford to lose.
Jupiterimages/Brand X Pictures/Getty Images
The Internet makes it possible to research a company and view analyst recommendations within minutes. So even though stock investments are often riskier than investments such as retirement plans, bonds, or money market accounts, online trading has become increasingly popular in recent years. The increased risk can mean greater reward, and because stock trading has become easy to do through online agencies, more and more couples find themselves investing in stock.
Step 1
Define your long and short term goals. Because stock trading has made it easy for more people to buy and sell, the market fluctuates due to the number of traders online. Many experts urge you not to invest in the stock market unless you plan to leave the investment untouched for 5 or even 10 years in the future. However, day traders, who profit from investing in daily or even hourly market fluctuations would argue otherwise. So be sure to have a plan of attack for your investment strategy.
Step 2
Decide on an initial investment amount. Discuss this amount with your partner to make sure you both have the same expectations for what to expect from your investments. Also keep in mind that many online stock brokerages have a minimum investment amount they require to open an account.
Step 3
Choose an online stock brokerage. If day trading and short-term speculation is your strategy, consider an agency that charges a flat monthly fee. If you plan to make long-term investments, consider a firm that offers a per-trade fee. Also check to be sure the initial minimum deposit required by an agency meets your expectations.
Step 4
Fund your account. The quickest way to fund your account is to link your bank account to the investment firm for direct deposit. If you are not an experienced investor, only fund the account with as much money as you can afford to lose.
Step 5
Build your portfolio. Your portfolio is comprised of the stocks you purchase. Most online brokerages make buying stock as simple as buying shoes online. First you must know the symbol for the stock you wish to purchase. For example, the ticker symbol for Yahoo! is YHOO. Enter the symbol to obtain a quote for how much the stock is currently trading. If you are content to purchase the stock at that price, then enter the number of stocks that you want to purchase and commit to the total amount. The trade will happen within minutes.
Things Needed
- Internet access
Tips & Warnings
- Consider automatically depositing funds from your paycheck into your online fund.
- Set stop-loss limits to ensure you sell stocks before they fall below a certain price that you specify.
Photo Credits
- Jupiterimages/Brand X Pictures/Getty Images
