Buying and selling shares at the right time ensures nice trading gains. But how do you know exactly when to sell shares? Or when it is the right time to buy stocks? Even though some claim to have invented the wheel, no one can answer these questions. However, there are some lessons to be learned from experienced investors about buying or selling stocks.
Investing in stocks works fairly simply. An investor buys shares of a company in the hope that they will increase in value. If the company is doing well, the value of your shares will increase. If the company is not doing as well, the value goes down. Want to learn more first? Then read our guide that gives you an answer on how investing in stocks works.
This can be done in two ways: with price increases and dividends. How exactly this works you will read below.
If you buy shares at a relatively low price and then sell them at a higher price, the difference is your profit. This applies to both short-term and long-term investing.
Dividends are profit distributions from companies to shareholders. Many companies choose to distribute a portion of their profits to shareholders. The purpose of this is to make shares of the company more attractive or as a reward for shareholders.
As long as you own shares of companies that pay dividends, you can benefit from possible dividend payments. This amount can be reinvested or used for other things.
Shares of publicly traded companies can only be traded through a broker or bank once a company is listed on the stock exchange. Companies can sell new shares to investors. This is called share issuance; the issuing or bringing into circulation of new shares.
When you invest in stocks (also called equity), you buy a part of a company and thereby indirectly own a portion of the company’s assets and profit. Stocks are issued by companies, which offer them to other investors at a price that is called the share price There are two types of stock market participants:
In this form of investing, you hold your shares for years with the goal of making a profit over a longer period of time. A long-term investor does thorough research on companies and only invests in companies he has confidence in, these companies are called blue chip stock. A long-term investor takes considerably less risk, but as a result also receives a relatively lower return. Long term investors mostly invest in Apple stocks, Microsoft stocks, and Amazon stocks.
A short-term investor sells his shares after only a few hours or days and wants to make as much profit as possible in as short a time as possible. The trick to short-term investing is to buy a stock at a low price and sell it again at a higher price. The last years, we noticed that a lot of short-term investing has been taking place in the cryptocurrency and altcoin space, and that is not weird at all, because there is a lot of profit being made there.
The difference in price is your profit. Trust in the company or product you are investing in is then not so important. Short-term investors are only interested in the price and hope to sell the stock quickly for a profit. A short-term investor takes more risk, but also expects higher returns.
It should be noted that investing in stocks is often risky due to the high volatility of the market, however, if the risks are well managed, the investor can take advantage of the stock market to secure his financial position and make money, but offcourse he has to find the best stocks.
There are no rules preventing you from taking your money out of the stock market at any time. However, there may be costs, fees or penalties involved, depending on the type of account you have and the fee structure of your financial adviser.
When a company sells new shares, it’s not that easy to get your hands on them immediately if every investor wants to buy them. If a lot of people want to buy the same share, you have to wait in line. This is because the banks and brokers only make a limited amount of shares available for sale; this amounts to 36 million shares per company.
You can start buying shares by opening an investment account/securities account at one of the various banks/brokers. Then you can buy shares independently through this broker in your browser or through an investment app. This application process can be completed within a few minutes.
At the moment you want to buy shares you can do this at a so-called broker. A broker is a kind of intermediary that makes it possible for you to buy shares and eventually sell them again. If you want to buy shares, you are able to do this with software from a broker. Read further and read the step by step guide.
Do you want to know how to buy into stocks It can be difficult to navigate through all the outdated and incorrect information related to purchasing stocks. We believe buying stocks should be accessible for all, which is why we’ve created this handy guide on where to buy shares online.
You’ll need to register with a broker, in these times you can’t go without once and it’s crucial to use a regulated broker that’s allowed to operate there, otherwise, you risk losing funds. eToro is one such broker, and one of the best options to buy stocks worldwide, to sign up just click on open account in the following table or compare other options.
Because eToro is a regulated platform, you’ll need to complete the KYC process, this is standard practice and only takes a couple of minutes. You’ll need to provide a photo ID (passport, driving licence) and proof of address (utility bill, bank statement).
Once you’ve signed up and verified your account, you’ll need to deposit funds. eToro accepts credit/debit cards, bank transfers, and also e-wallets. So whatever your preference there will be something for you.
Now that you’ve funded your eToro account, just type “name of the stock you want to buy”into the search bar at the top of the screen and press “trade”.
All that’s left is to buy your desired stock. Simply enter the amount of stocks you want to purchase and hit the “buy” button. The amount you bought will be automatically credited to your account where you can monitor its performance.
All in all, the stock market has an incredibly big amounts of companies that have the potential to solve some major issues in the business space. After reading this guide you should know how to buy this investment using the best broker or platform.
We recommend eToro to anyone looking for a regulated, easy-to-use, fully-featured exchange. As with any broker, it’s crucial you set up 2FA when using eToro as it ensures your funds are completely safe.
There is a growing number of international stock exchanges listed apart from the New York Stock Exchange and Nasdaq Stock Exchange such as The Toronto Stock Exchange (TSE), Over The Counter Markets (OTC), Paris Stock Exchange (EPA), Frankfurt Stock Exchange (FRA), NYSEAmerican (AMEX), XETRA Stock Exchange (ETR) and the London Stock Exchange (LSE).
You can buy or sell any stock that’s available in the stock markets to which your broker has access. Stock brokers also have access to valuable research resources that clients can tap into in order to get more insight on the investments that they’re interested in. Read a few reports in our lab, for example the DeGiro review, IC Markets, Avatrade review or Interactive Brokers review.
Is it possible to buy and sell stocks from home is a question that gets asked often. The reasons are pretty obvious, with new online brokers such as eToro and DEGiro it became possible to trade anywhere, anytime. Buying and selling shares at the right time ensures nice price gains. But how do you know exactly when to sell shares? Or when it is the right time to buy stocks?
Perhaps, using a debit card would be the easiest option for you to buy stock. This method allows you to process the transaction instantly and buy stocks right away. All the brokers we have listed above, allow you to buy stocks using a debit card. However, fees at are by far the cheapest, with the broker allowing clients to deposit funds with a debit card for free.
Click here to buy Stocks by Debit Card with eToro ->
Credit card payments are also becoming an increasingly popular option when buying stocks online. However, before you use this option, you will want to check with your credit card provider first. This is because some credit card businesses charge a ‘cash advance fee’ when buying stock, which can cost between 3 to 5%.
Click here to buy Stock by Credit Card with eToro ->
If you already have a PayPal account, then you can also use this method to buy stock. Not only will this option be cheaper, but you will also be able to complete the purchase of the stock you are looking for instantly. The only thing is that you might have to do a bit of digging to find a platform that supports this payment.
Fortunately, eToro is among the few brokers that accept PayPal payments Once you choose this option, you will be redirected to the PayPal network, where you can sign in to your account and confirm the purchase.
Click here to buy Stocks by PayPal with eToro ->
A bank wire transfer is an electronic message that allows banks to exchange information about client accounts. When you wish to acquire stocks using a bank wire transfer, go into your bank account and start the transfer. This approach has the benefit of providing high transaction limits, as well as being quite safe. On the other hand, this is a lengthy process that may take 3 to 5 days for your money to appear in your account.
Another popular and secure e-wallet option is Skrill, which is a UK-based firm with cross-border licensing to provide global online financial services. In certain situations, deposit and withdrawals via this gateway are instantaneous and free. skrill’s transaction fees may nevertheless be rather high. If your platform permits it, you may use Skrill to purchase stock.
Revolut is an e-money service that allows consumers to engage with their financial accounts via the internet. Clients maintain bank account numbers in a number of countries, allowing them to perform transactions quickly and simply. Revolut users can earn a card that functions in the same way as a credit or debit card.
The Revolut card is not accepted by most stock providers but you can buy Stocks with Revolut by transferring money directly from a Revolut account, just like a normal bank wire transfer, into your stock portfolio.
Neteller is an online money transfer service that helps you send money between merchants including stock trading firms, stock exchanges, and even social media sites. To purchase stocks using Neteller, first deposit cash into your Neteller account and use the balance to acquire stocks.
The first thing you need to do is find a broker that also operates in the Spanish market. There are many brokers available for Spanish customers, so it’s important to do your research before selecting one. Make sure the exchange or broker is reputable and has a good track record. Scroll up to find a few great solutions for buying stock in Spain.
The first thing you need to do is find a broker that also operates in the USA market. There are many brokers available for US customers, so it’s important to do your research before selecting one. Make sure the exchange or broker is reputable and has a good track record. Scroll up to find a few great solutions for buying stock in United States.
The first thing you need to do is find a broker that also operates in the UK market. There are many brokers available for UK customers, so it’s important to do your research before selecting one. Make sure the exchange or broker is reputable and has a good track record. Scroll up to find a few great solutions for buying stock in United Kingdom.
The first thing you need to do is find a broker that also operates in the German market. There are many brokers available for German customers, so it’s important to do your research before selecting one. Make sure the exchange or broker is reputable and has a good track record. Scroll up to find a few great solutions for buying stock in Germany.
The first thing you need to do is find a broker that also operates in the French market. There are many brokers available for French customers, so it’s important to do your research before selecting one. Make sure the exchange or broker is reputable and has a good track record. Scroll up to find a few great solutions for buying stock in France.
The first thing you need to do is find a broker that also operates in the Italian market. There are many brokers available for Italian customers, so it’s important to do your research before selecting one. Make sure the exchange or broker is reputable and has a good track record. Scroll up to find a few great solutions for buying stock in Italy.
A broker allows you to buy and sell investment products such as shares, bonds and investment funds. A broker offers you access to the stock markets via an online investment platform. You invest for your own account and risk.
There is a good reason why stocks are wanted by the public. The potential to earn higher returns than alternatives like bank CDs, gold, and government bonds. The ability to protect your wealth from inflation, as the returns often significantly outpace the rate of inflation. The ability to earn regular passive income from dividends.
To buy stocks (or sell them) you need a broker to do it for you. A broker is a person (or a company) that is authorized to buy and sell shares in the market. You tell him what and how much you want to buy or sell and he does it for you, in exchange for a small commission.
Well, when you buy a stock, you become the stock owner – owning a fraction of the firm’s assets and profits based on the stock’s amount. If a company makes a profit, you will get the profit according to your investment. The owner of the stock is known as a shareholder of that company.
As a private individual, you could previously only buy shares through the bank. Thereby you paid transaction costs. Nowadays you can also buy your shares online through financial institutions (online brokers).
Technically speaking, there’s no minimum amount of money required to start buying stocks, as most of the best online brokerages don’t have a minimum deposit requirement to open an account.
At many online brokers you can always buy whole shares, but there are also plenty of providers who sell shares in small parts or with leverage. Brokers who sell whole shares consciously choose to do this because they attract a different type of investor.
In summary, when you buy a stock, you’re buying a fraction of a company, and that fraction may pay dividends and gain you voting rights. Still, the main way people benefit from stocks is by buying and holding them for the long term. Investing legend Warren Buffett recommends holding stocks for decades.
To be able to receive dividends and buy stocks, you need to be connected to an online broker. One of the most well-known online brokers is DEGIRO. Here you can create a free account online, with which you can immediately start buying dividend stocks.
BAMagazine is a website where you can research stocks, cryptocurrencies, get investment tips and find the latest news about financial markets.
We believe that no one should have to pay too much unnecessarily for their financial products. Therefore, we make it easy for you to find realiable, trusted brokers that can help you with specific investments like stocks and cryptocurrency.
If you have difficulty making a investment choice, our comparison option will help you on your way. Another option is reading one of our in depth reviews or guides to gain more information about certain investments or brokerages.