Are you looking to invest in the stock market? Or want to start stock trading? But you don't have an idea of how to start? then this article will help you 

There are several methods to start stock trading or investing, whether you want to trade infamous names like Google or speculate in shining stars like Tesla.

With the simple five-step guide, you can start your fruitful stock trading journey.

  • Build an excellent Stock trading/ investing plan.

  • Choose a suitable online broker.

  • Open an account and deposit the funds.

  • Purchase the stocks.

  • Regular overview.

Now will dive deep into the brief about all these steps.

Build an Excellent Stock Trading/ Investing Plan:

The very first and crucial step to start your trading journey is building a proper trading plan. 

Some of the essential points to understand before starting stock trading.

  • How much time can you spend on trading activity?

  • What are the goals?

  • How much risk can you take?

By understanding the answers to these questions will help you to make a perfect trading plan. 

While making the trading plan, always include the following crucial point: Diversifying the portfolio. If you make all the investments only in one or two stocks, and if you have bought the stocks goes bust, you will lose all your invested amount. Therefore diversifying your portfolio is crucial. Which means you should put your funds in different stocks. The prominent number of stocks for a healthy portfolio lies in between 10 to 30.

Mutual funds or ETFs can also be the investment option, a simple form of portfolio diversification.

Choose a Suitable Online Broker:

Once you build the trading plan, the next step is to open the trading account with a suitable stockbroker. But how will you find the right broker? Today there are tons of brokers available in the industry which are offering different services and tools. Each broker comes with several pros and cons, many commission charges, trading platforms, trading tools, and account types; hence, choosing the perfect broker might be tricky for anyone. 

But we are here to help you to choose the correct broker. We work only for this purpose; we offer unbiased broker reviews based on their different features. We offer reviews only of the legit brokers and those who are regulated by the top financial bodies. HFTrading and Global TradeATF are the top brokers and safest ventures for starting your online trading journey.

Open an Account and Deposit the Funds.

After selecting the broker, the next step is to open an account and deposit the initial funds. Through this account, you will manage all your funds and investments like bonds, stocks, etc. The account opening process is straightforward, and you can open your account through the online process. The account is activated the same day, or it can take some multiple days based on your documentation submitting time and method.

Once the account is activated, you will need to add funds to that to start your trading. The minimum deposit amount and payment deposit options can be different with every broker.

You can also open a demo account with many brokers. This account works the same as the live account. You can practise all your stock trading strategies before jumping into the live market and putting all your savings at risk. 

Avoid opening an account with scam brokers, as there many scam brokers in the industry. Before opening the account, ensure that the broker is legit and regulated and authorised by the top financial authority.

Purchase the Stocks:

Now that you have the trading plan and opened the brokerage account, and deposited the funds, you now need to purchase the stocks you have chosen. You can take the help of the trading platforms search feature for selecting the stock.

As of now, you have selected the stock to buy. According to your account balance, you will have to choose the quantity you are willing to buy and press the trading platform’s buy button.

You can select the different order types for placing the buying order. Such a limit order offers you the option of buying the stock at your price, while with a market order, you will have to buy the stock at current market value. 

Some points to keep in mind while buying the stocks

While choosing the stock, always do the proper research about the stock market and particular company whose share you are willing to buy.

You can get the information of the company by the income sheet and some news about the company.

To understand the market dynamics, you can read some books written by legendary investors like Warren Buffet, Benjamin Graham, etc.

Regular Overview of your portfolio

Once you have done your initial buying of the stocks, you can enhance your portfolio by adding new stocks or selling them for reaping the profits or cutting the losses. This is known as portfolio management. If you have bought the stock for the long term, you can check your position once in six months. But for the short-term, investors will have to check their position regularly and apply the stop loss or limit to cut off the losses or sell the assets at the targeted price.

A successful market player always keeps track of the market movements, how the companies are performing, the economy is doing, which industry sector is shining and busting, and plans his trading methods and investments accordingly.

Top Stock Brokers 2021

HFTrading:

HFTrading is managed by CTRL Investments Limited, a New Zealand-based organisation governed by the Australian Securities and Investments Commission (ASIC) and the New Zealand Financial Markets Authority (FMA).

The broker allows commission-free trade on more than 350+ CFD assets, including  Commodities, Cryptocurrencies, Forex, Indices, Metals, and Shares, over three different types of trading accounts Silver, Gold and Platinum Account. It also provides Islamic swap-free accounts. With HFTrading, clients get access to the globally-popular MetaTrader 4 trading platform for mobile, Web, and desktop. The broker also provides a vast collection of educational resources through different channels such as video on demand, articles, courses, tutorials, and eBooks.

Global TradeATF:

Global TradeATF was established in 2013 and is a trademark of Bayline Trading Ltd, regulated and authorised under the International Financial Services Commission (IFSC) of Belize. It is also a digital partner of the Argentine National Team.

With Global TradeATF, Customers can exchange commission-free on more than 400+ CFD tradable assets covering stocks, Forex, Cryptocurrencies, Indices, and Commodities across three different trading types Silver, Gold and Platinum. Clients can also practice on a demo trading account.

The firm offers its proprietary WebTrader trading platform to trade on multiple instruments with one-click, numerous order types and various other peculiarities. Traders can also trade on the globally-popular MetaTrader 4 mobile trading app for iOS and Android users.

They offer a sizeable educational database including eBooks, videos, tutorials and courses. Customers can also connect the broker through various international telephone no, emails and live chat options 24/7.

Final Thought:

Stock Trading is the best option for investing. You can make a good amount of money in long term investments. If you are planning to invest in stocks, you should follow all the above-stated steps to build a great portfolio. You should learn some trading strategies for the short term in the stock market so that you can avoid attracting losses and earn profits.