In most cases, the first purchase of shares raises a large number of questions and misunderstandings, especially among people who have not previously been engaged in the trading process. Today we will carefully consider the main nuances of how to buy stocks through an investment account on the broker website. The best broker service iqoption.com from our TOP-list was taken as an example.
First stage: Creating a personal account on the broker website
Before purchasing real shares on the Iqoption broker website, try to practice how to buy stocks using special games. Such modeling helps to comprehend the basics of the stock market. Such games and trading simulations provide a good platform for learning the basics of the stock market theoretical side. There are many user options online, and almost all of them are free. So there is no need to risk your money to find out how to buy stocks online or sell shares. Simulated trading games take place in real-time on the market. If you join these online communities, you can trade stocks, just like in the real world. The only exception is that you don’t need to invest your own money in this case. In a few weeks or months, most likely you will be ready to buy stocks and invest real money on your own Iqoption trader account.
The website has been operating since 2013 and is considered as one of the most popular European companies providing financial services. To access the trading platform of the company and conclude transactions, you need to open an account on Iqoption. Registration for traders from all countries except Russia does not cause problems, but Russian financiers have difficulties with this operation. To solve this problem, you can just use different VPN-services and there will be no difficulties in entering the website.
To create your own account on iqoption.com you must visit the official website of the broker. If you went directly to the main page, the registration or authorization form will automatically appear on the right side of the screen. Otherwise, you will need to click the “Register” button. In the window that appears, the system will ask you to enter the following data:
- Name and surname (you need to point out just correct information because it will be thoroughly reviewed by the system moderator).
- Valid email address.
- Password (for protecting your new account data).
- It is also necessary to put a mark, which confirms the fact of your familiarization with the rules of work and the fact that you have already reached the age of 18.
After that, on the trading platform, the system will open a virtual trading account for you, on which there will already be 1000 virtual dollars for training how to buy stocks online. At the same time, you get a real account, which can be replenished using bank cards or electronic payment systems. An e-mail will be sent to you with a link to verify your account, and the surname and name will be verified when you fill out the first application for the withdrawal of earned profit. The information entered is used only for initial registration. Real trading also requires the provision of copies of your passport and data confirming your registration.
Such accounts provide the following benefits to traders:
- low minimum deposit, which is only $ 10 (or 300 rubles), as well as a minimum withdrawal amount of only $ 1 (or 30 rubles), respectively;
- sufficiently large possibilities for choosing trading instruments;
- a convenient platform that allows you to trade comfortably;
- almost instant withdrawal of funds;
- the ability to trade in various currencies: rubles or dollars;
- the possibility of training in the initial pairs, which includes a multimedia course and regular webinars.
When registering a new account on iqoption.com, a number of bonuses are provided, which the user has the opportunity to refuse. Welcome bonuses will be presented again, even if the trader used them in a remote account.
The second stage: go in for the selection of shares for the acquisition
When you have managed to create your account on the broker’s website, as well as deposit the first amount of money on it, it’s time to start buying stocks. It is best to do this with those companies that have a good rating in the forex market, as well as many positive reviews.
Do not let market fluctuations and price changes unsettle you. Exchange research should be regular so that you can always objectively evaluate the proposed orders and transactions. When you choose the company whose shares you want to purchase, you should analyze its annual report. You need to do this in order to understand how promising and profitable the organization is. You can also evaluate a business using the whole set of trading tools offered by a broker in your account. Using them, you can get fresh and truthful data on SEC documents, quarterly earnings reports.
Third stage: decide on the number of shares that you want to purchase
Do not feel any obligation to immediately buy a large number of shares. You must understand that first, you need to understand the purchase/sale procedure. Only after this is it really worth taking on large deals. You should clearly understand that full involvement in the field of trading is sometimes threatened by a lack of sleep and the need to spend 24/7 on the trading platform. Even forex professionals started by buying one or two stocks per day. Do not be afraid of gradual training or a slow increase in shareholder potential.
Fourth stage: select the type of shares to be acquired
Learn how to choose stocks. There are many new traders who are eager to place their first orders because they still do not know when to enter the market. Here is a good tip. If you are still learning how to buy stocks, do not concentrate on when to do it. You need to study various stocks and choose those that have the brightest prospects. Concentrate on learning which stock to buy, but not when to do it. As a rule, you should choose stocks that are market leaders. Developing companies that have consistent record growth are also a good buy. Stocks of technology companies and healthcare are good options too, especially if you want to take part in long-term trading.
Beginners also need to learn how to choose the right stock. Sometimes, new traders have the problem of misunderstanding the various terms and phrases that appear on the broker’s order pages. In this case, you just need to learn to understand the theoretical basis.
When such kind of an order is placed on the trading platform, it must be indicated that the share will be bought or sold at the most convenient market price. This order will be done on the same day because market orders are not limited by pricing policy. But in this case, you need to be prepared for the fact that the amount of money (paid and received per share) may differ from the one you previously expected. The fact is that market price indicators are constantly changing during the working day. That is why it is better to use this option only when buying or selling relatively stable stocks.
Such orders have their own characteristics:
- They will be useful for investors who accumulate a large number of shares and do not resell them immediately. For such people, insignificant price fluctuations in the market which can occur 10 times a day are not as important as for beginners.
- If an order is placed on the website after the ending of working hours, the transaction appears on the exchange the next day at the most prevailing price.
The second type of orders on this website are limit orders. It means that the client specifies the application of price limit value at which he agrees to purchase (sell) securities. In this type of purchase order, the broker is instructed to purchase securities at a specific price or below the level of this price, and in case of a sales order – to sell securities at a specified price or, if possible, more expensive. In any situation, the broker will strive to conduct the transaction at the best price for the client. The issuance of limit orders resorted to investors focuses on short-term investments. They acquire securities for a certain period of time in order to resell it at a higher price in the future. Therefore, the purchase price level is important for them. The execution of the limit order may take a sufficiently long period of time, especially if the limit price deviates significantly from the market. In this case, the application with the limit price is entered in the computer database of the specialist working on the exchange and will be executed as market conditions meet the requirements of the application.
One of the varieties of limit orders is the setting of a price limit when executing market orders in order to ensure against excessive price reductions when selling or price increases during buying of securities. For example, an investor intends to buy a large number of shares of a particular issuer. He instructs the broker to acquire them at a market price, but not above a threshold value. Moreover, its value at the moment will be higher than the market prices. The broker will immediately begin to execute the client’s application and will buy shares for him until the price rises to a threshold value. Upon reaching the set price level, the acquisition of shares is terminated. Thus, the investor is insured against buying shares at too high a price. The threshold values for the sale of shares are established similarly.
Fifth stage: Take care of optimizing your account
We hope that compliance with the above rules will help you to learn how to buy stocks for beginners with maximum profit and success. But even if some transactions fail, you need to not give up and just continue doing your own work. Every investor goes through a lot of problems and challenges throughout his/her career. The main way to preserve the accumulated potential and achieve success is just constant concentrating on stocks and possible prospects. The only thing that a trader cannot control his own is market changes. But you can follow it and constantly learn about all the new products of trading. There are also some typical rules for newcomers:
- You must use the right tools for the job —only when it works correctly, you get the ability to analyze companies thoroughly.
- Do not forget that there are so-called brokerage fees. They can significantly affect your income, especially at the beginning of a trading career.
- You should also consider buying shares in mutual funds. Thanks to this, you can immediately purchase a whole block of shares within one transaction.
In conclusion, it is worth saying that Iqoption provides a lot of pleasant bonuses that should reward the hard work of every user. This platform is in great demand among traders of the European countries. It suggests a lot of advantages and benefits, which allows traders to earn serious money on their own investments and rates. So, there is only one answer about how to buy stocks – iqoption.com.