by Marco Angioni II

Created on: March 19, 2010   Last Updated: March 22, 2010

Investing in the stock market is a great way to diversify your investment plan as well as a way to create an additional revenue stream.  However, investing in the stock market can also be very intimidating.  Fortunately, the rise of Internet stock accounts has made it easier for first-time traders to open an account, research companies, and trade stocks.

Opening a stock account is the first step in investing in the stock market.  You can go the traditional way and go to a brokerage, fill out the paperwork, and deposit your minimum account balance (which minimum balance can range anywhere from $500 to $25,000+).  However, the Internet makes these steps simpler.  You can open an account online by filling out a couple of forms and by wiring your money from your bank account into the stock account.  You never have to leave your house, and if you need help, most stock companies offer online support and/or a phone number to call.

Once you open your account, you should be ready to trade.  However, you should not randomly pick a stock that you saw on television or heard on the radio.  The best way to start investing is to stick with what you know.  Work experience as well as life experience has most likely provided you with a certain level of expertise in a particular area.  As such, start with these experiences when searching for a particular stock to trade.  If you need help picking a company, your brokerage (the place where you have your stock account) will be happy to assist you.  However, it is important to be aware that should you ask for assistance from your brokerage, you will most likely be charged a fee.

After you know which stock you want to trade, the next step is to develop a trading plan.  Are you going to hold the stock for a long time?  Are you looking to make a quick score?  Do you want to day trade?  You need to answer these questions and more when developing your trading strategy.  If you need help with this step, your brokerage will help.  But again, you will most likely be charged a fee.

Now that you have your account, you know which stock you want to trade, and you have your trading strategy, the final step is to execute your strategy by actually trading the stock.  With some patience and a little luck, you will see your investments soar!

Remember, start by opening a stock account by using the traditional method or the Internet.  Figure out which stock you want to trade by relying on your work and life experiences.  After you have decided on a stock, develop a trading plan.  If you need help with any of these steps, your brokerage will help you but will most likely charge you a fee.  Finally, execute your plan and begin to prosper. 

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