| How To Buy Stocks Online: Everything You Need To Know - How trading stocks can change your life…
- Reviewing basic trading terms...
- And can you buy stocks online WITHOUT a broker…
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A rare occurrence is happening right now in the gold market 
There is something happening in the gold market right now that you need to be aware of… I urge you NOT to invest in anything before viewing this briefing. Because this information could be a true game-changer for millions of Americans. | |
Dear Penny Stock Millionaire, Wanna buy stocks online? Well, that’s easy. You could literally get started in minutes. But if you want to do it right … well, that’s a bigger conversation. Once upon a time, I was just a know-it-all kid who thought he’d strike it big in the stock market. I did become a millionaire … but not without my fair share of failures and mistakes. I ultimately found success, but I also understand why so many traders fail. It’s SO important to find a system that works for you and to continue to refine it. That won’t happen overnight. I tried my hand at the hedge fund world, but as you can read in my autobiography, my method wasn’t scalable –– meaning that my strategy for trading low priced stocks didn’t work as well with a bigger account. Hedge fund management wasn’t the best use of my knowledge or time. Now, I’m a trader/teacher so I can help other emerging traders. I want to be the mentor that I never had. Trading isn’t necessarily difficult. It doesn’t require an advanced math degree. But it does require diligence and lots of grunt work. Want to become a self-sufficient trader? It takes time and effort, and even then there are no guarantees. But by educating yourself, you’re building a much stronger foundation than the countless traders who blindly dive in and learn the hard way — with painful, costly losses. Ready to start learning? Let’s talk about something every new trader should know all about: how to buy stocks online. Why Trade Stocks? There are plenty of reasons why I think trading stocks is worth the time and effort. Here are some of the biggies: Growth Potential Say that you’ve got some money. What should you do with it? Well, you could put it under your mattress, but it won’t do much for you there. You could put it in your bank account, too. The money is safer … but it really won’t be doing much more for you. Maybe a few cents in interest per month. With stocks, you’ve got a potential for much greater growth. It’s an opportunity to have your money work for you. Income If you develop a consistent system of trading, it’s possible to generate income over time. Let’s get straight on this: I’m not talking about home runs or hundreds of thousands of dollars in a single trade. That can happen, but don’t count on it. Most trading income is going to come in through small wins. The good news? These small wins add up over time. And as time goes on and your skills and account grow, your ability to generate income from trading can grow, too. Flexibility All you need to trade is a laptop, a brokerage account, and an internet connection. But it doesn’t matter where you actually do it. Honestly, you could even do it from your phone! This flexibility is, for me, one of the greatest advantages of trading. I can trade from anywhere, which is great because I love going to beautiful places like Santorini or Australia or Positano and I’m always on the move with Karmagawa projects. I have the ability to trade and teach from anywhere...and I love it. If you want to break out of the 9–5 box, trading might be a highly appealing undertaking! Control I joke that I’m a “retired trader.” This is a strategy that works for me … to actually jump into a trade, it has to be such a great setup that it draws me out of retirement. From there, I have a ton of control. I can set the entry and exit points for trades. I know where I’ll take profits or where I’ll cut losses if the trade doesn’t go my way. Even if the stock doesn’t perform how I think it might based on my research, I still maintain a high level of control with trading. Trading rewards diligence! Basic Stock Trading Terms Yeah, trading has its own lingo. Here’s a little glossary of some must-know terms: Buy To buy shares of a stock. Sell To sell the shares of stock you’ve purchased. Usually, you’re selling either because you’ve reached your goal or you want to cut your losses. Bid The current price that buyers are willing to pay for stock shares. Ask The current price buyers are asking when selling stock shares. Bid-Ask Spread The difference between the bid and ask prices. This has to be resolved for a transaction to go through. Bear / Bull Market - Bear market: Pessimistic market conditions where investor confidence is low and stock prices are expected to fall.
- Bull market: Optimistic market conditions where investor confidence is high and stock prices are expected to rise.
Blue-Chip Stock These are big, industry-leading companies. They typically offer reliable dividend payments. Broker A person or group that buys or sells securities on your behalf. Day Trading Buying and selling a security within the same trading day. Dividend The portion of a company's earnings that are paid on an annual or quarterly basis to shareholders. Not all stocks deliver dividends. ETF Short for exchange-traded fund. ETFs can be bought and sold like stocks. Exchange The marketplace for stocks; for example, the New York Stock Exchange and NASDAQ. Execution When an order to buy or sell is complete. If you put in an order to sell 100 shares, this means that all 100 shares have been sold. If only 90 shares were sold, the order is considered partially executed. Float Also called “public float.” The number of shares that are available for public trading, minus those claimed by insiders. Forex Short for foreign exchange; this involves trading foreign currencies. Recommended Link
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A wealth revolution is coming. And it could make you very… very… rich. That’s the latest forecast from the man they call “America’s #1 futurist”… “Wall Street’s most influential technology trader”… and “a true American genius.” How so? “We’re headed for a potential $16.8 trillion reboot,” he says. “Nobody will remain untouched. And a few early investors could walk away with a king's ransom.” | |
Going Long Executing a trade hoping that the stock will increase in price. IPO Short for “initial public offering.” This happens when a private company goes public on the stock market. Liquidity How quick/easy it is to buy or sell a stock. Margin This type of account lets you borrow money from a broker (like a loan) to purchase securities. Market Capitalization Also referred to as “market cap.” Refers to the market’s valuation of a company. Moving Average A stock’s average price per share during a specific time period. For example, the 50-day moving average or 200-day moving average. Mutual Funds A type of investment account where a fund manager will then invest your money in a variety of different securities. Portfolio Your personal collection of investments. Quote The stock’s latest trading price. Rally A fast increase in the price level, either of the market or a specific stock. Volatility How quickly a stock’s price goes up and down. The more rapid the movement, the greater the volatility. Volume The amount of shares being traded in a given day. This has a big impact on a stock’s liquidity. Sector A group of stocks within the same industry or business. For instance, the technology sector. Stock Order: Choose Your Stock Order Type Market Order A market order is an order type where you execute as soon as possible, at the current market price. I don’t suggest using market orders. Limit Order A market order lets you provide instructions to only execute at or under a purchase price, or at or above a sale price. Seconds can matter in the market, so using limit orders helps guarantee that you’re buying or selling for a price that feels good to you. Stock Symbol The symbol used to represent a stock –– also known as a ticker. Yield The measure of return on an investment received through dividends. How to Buy Stocks Online The good news is that buying stocks has never been easier. Once upon a time, you had to call up your broker to execute trades; now, you can do it from your computer or even your cell phone. Let’s talk about what you need to buy stocks online: Open an Online Brokerage Account Before you can buy or sell stocks, you’ll need a brokerage account. What are Stock Brokers? Your stock broker is almost like your agent in the stock market, executing trades on your behalf. Usually, there’s some sort of a fee for this service. These days, most orders are executed online. However, there are many types of online stock brokers. Here are some to know: Full-Service Brokerages This is a broker who not only executes orders, but can provide investment advice and/or other services. Online Discount Brokers Brokers who carry out transactions at a discounted rate. Most discount brokers are online-only. Discount Brokers With Assistance A discount broker that may provide some additional services. Money Managers These are professional managers who manage the accounts of individual or institutional investors. What Do You Need to Open a Brokerage Account? Usually, opening a brokerage account is about as involved as opening a bank account. That is to say … not too complicated at all. Typically, You’ll need to fill out a few forms and deposit some money in the account. Every brokerage is slightly different, though; be sure to check any specific requirements or minimums before settling on a broker. How to Pick the Right Stock Broker Choosing a good stock broker is extremely important if you want to pursue trading in the long term. You want to trust the institution that’s handling your account, and you want to make sure that they’re executing your orders quickly and reliably. Best Online Stock Brokers for Beginners There isn’t a single online stock broker that’s best for beginners, and there isn’t a single best place to buy stocks online. It’s all about your personal needs. Choosing a stock broker is a personal decision, and not one that should be taken lightly. If you’re getting started, one thing that I strongly suggest looking for is a broker that has plenty of great charting tools. Some people have a stock screener and a separate brokerage account, but it’s nice to have both in one place. StocksToTrade is an example of a stock screener that has broker integration, making it easy to execute trades right from the platform. Best Stocks to Buy Online You want to know what I wish traders would stop asking me? “Tim, what’s a hot stock pick?” Sorry. It just doesn’t work that way. I could give you a stock pick right now. By the time I’d sent you an email or a text, it might already be obsolete. Or, you might not choose an appropriate entry or exit point. There are plenty of alerts out there, including the ones that I send. But just because a stock is deemed worthy of watching doesn’t mean you should just go ahead and trade it. You’ve got to do a ton of independent research to build a case for your trade. This involves fundamental and technical analysis. Fundamental analysis is where you research the company, its finances, and consider things like the news and other factors that could affect a stock’s price. Technical analysis is where you analyze the stock’s chart to see if there are patterns. I’m a huge fan of patterns, and I rely on technical analysis. But you need both to make really smart trading decisions. To perform technical analysis, you absolutely need a stock screening platform. Once again, StocksToTrade is my pick. This is a powerful stock screener that lets you filter based on criteria you set––for instance, the biggest percent gainers. Full disclosure: I was part of developing STT. So you can bet I rallied hard to have all of the screening tools I wanted on the platform! Not only does STT let you evaluate charts, but it links to relevant news and even social media mentions for tickers. This means that setting up and maintaining a watchlist and doing your fundamental and technical analysis is a snap. Recommended Link
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According to the latest figures… A record 45 U.S. companies worth at least $1 billion have filed for bankruptcy so far this year. That’s about 20% MORE big bankruptcies than the number that occurred during the same period after the 2008 financial crisis. But what’s so surprising to me is that nearly every media outlet is almost completely ignoring the even bigger bankruptcy story – which is going to have a massive impact on you and your money over the next few years. | |
Bonus: How to Buy Stocks Online Without a Broker Don’t like the idea of middlemen? Plenty of people are interested in how to buy stock directly...in my opinion, it’s really not worth the trouble but everyone’s different so I want to make sure you know about different options. Here are some ways to do it: Direct Stock Purchase Plans Also called DSPP for short, these are plans that let you buy stock right from a company … sometimes without a fee, and sometimes even at a discount. However, you’ve got to read the fine print. Sometimes, they’ll charge setup fees, sales fees, or other charges that add up to more than just paying a broker’s commission. Plus, if buying DSPPs you’d need to do it individually with every stock. In contrast, a brokerage account lets you buy all sorts of company stocks from one account. Dividend Reinvestment Plans Also called a DRIP (really, this is an equity option that companies offer where you don’t receive dividends as cash, but they’re reinvested in the security. This can allow you to increase your position over time without paying extra transaction fees. Other Specialty Accounts There are some other ways to bypass brokers, but usually they’re limited to wealthier individuals or people with access to an asset management company. My personal take? Broker fees generally aren’t that bad … focus on making smart trades and the fees are negligible. It’s when you overtrade or don’t think your decisions through that the fees will start burning holes in your pocket. Conclusion Buying stocks online doesn’t require much to get started. But if you want to do it effectively, there’s a lot to consider. By doing things like taking the time to educate yourself on how the market works, researching brokers, and taking the time to learn what works for you as a trader, you’ll can be leaps and bounds ahead of the many traders who fail. Quick questions: Did you pursue an education before you started trading? Tim Sykes
Editor, Penny Stock Millionaires P.S. There is something happening in the gold market right now that you need to be aware of… and that’s why it was time to reveal it here. While mainstream media headlines are focused on the pandemic and the election, shocking details about this rare occurrence happening right now in the gold market are being ignored. You’ll understand why this is so urgent once you click here and see what I’m sharing on camera. I urge you NOT to invest in anything before viewing this briefing. If you have followed my work, you know for years I have recommended that every American put 10% of their wealth in gold. But something is happening right now that could result in profits even HIGHER than investing just in gold bullion itself. Believe me, with my background as a financial analyst and writing about gold for years, I know the difference between hype and real opportunities in the gold sector. And I think every American deserves to see what I reveal in this briefing… Because this information could be a true game-changer for millions of Americans. Click here now for this rare opportunity. | 
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