How To Start Buying Stocks - Every investor looks at stocks to earn money, but buying them without doing any research is the wrong way to start. The future is bleak and you can easily lose all your money.
Holding money is quite dangerous at the moment and you could lose everything in the recession. So you should decide what asset to buy. Most investors have chosen stocks and real estates as they are easier to buy for the lay person.
You should start by putting your finances in order and take care of debt. Ideally you should only a car or mortgage. Credit card debt is a problem.
In addition, reduce debt as much as possible. Build three to six months worth of expense in a separate savings account. Now all you got to do is choose your stock broker.
This is the most important step. Most major banks have a brokerage service. Do not choose a brokerage firm that you don’t know. Choosing one from your bank is highly recommended if you are new to stocks.
Most brokerage service offer several type of services and stocks. They can be mere basic services (cheap) or with advice and support (expensive). You can choose the basic one if you want to do your own research.
After you have signed with a broker, you will decide what stocks to buy and he would select it for you. Choose them carefully. You can choose companies that have been battered by the credit crunch and hence have a low P/E ratio.
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