Buying Stocks: The Ultimate Guide for Beginners

Have you ever thought about buying shares on the stock market? If so, you are on the right track. Indeed, purchasing shares proves lucrative for the informed investor. You also have a vast field of successful businesses that can earn you money. However, stock market investing requires a minimum of skill. So here is a complete guide that teaches you how buy stocks on the stock market.

Stock Market Action: What is it?

A stock market share is a share of a company listed on a financial market. In other words, it represents a fragment of the overall capital of a company. It gives the person who owns it a property right over the profits and assets of the company. So, the more stock you have in a company, the bigger a co-owner you become.

For we to speak of stock market action, the company must make an entry into the financial markets. This concept is called IPO, and consists of opening the company's capital to the public. Thus, individuals or any person can invest in shares to become owners.
To the same extent, the money generated by the purchase of shares will allow the company to finance new projects. Consequently, she will increase her assets.

4 Questions to Ask Before Buying Stocks

What is your stock purchase budget?

A starting budget of $10 to buy stocks. The question of budget is also the first question to ask yourself. You must total a sum of money that will allow you to buy shares on a trading platform. This budget is suitable for investing effectively.

What is the Stock Price?

The share price to buy is not fixed in advance. It varies in real time. So you should always ask yourself about this before you start. It also allows you to check if your budget is sufficient to buy this action. Given the variations, today's price may be lower or higher than tomorrow's. So you have to be smart if you want to make money.

Is this a Profitable Stock?

Similarly, the profitability of an action is not decided in advance. It depends on several factors, which is why you should ask yourself about it. Ask yourself how it performed over the previous months or years. Also observe the forecasts of the experts about it. This lets you see what you can get out of buying that stock over the course or over the long term.

Can you take the risk?

There is no standard answer to this question. So it's up to you whether you want to take the risk or not. In fact, no stock purchase is 100% safe. The possibility of a loss still looms. So you should not answer this question without thinking. It is better to analyze the action before making your decision.

How to Buy Stocks – Tutorial

1. Find the perfect broker to buy stocks. We advise you to use DEGIRO which offers the best conditions for buying shares on the stock market.
2. Register on DEGIRO. Be sure to mention your personal information when registering.
3. Deposit money into the account DEGIRO that you have just created. The broker offers you several payment methods for this purpose.
4. Place a buy order on the action of your choice.

DEGIRO offers you two options for investing in stocks. First of all, you have buying shares for cash. This makes you a holder of real titles. Then you have stock market speculation. Here you use exchange products to take advantage of the stock price and leverage.

How to Find the Best Site to Buy Stocks Online?

Regulations

This is the first point to emphasize when finding the best stock broker. The regulations show that the broker respects the law, and that you can trust it. So, you should always choose sites recognized by organizations such as:

• AMF
• ASIC
• FCA
• BaFin
• CySec
• KNF
• and many others.

Ease of use

The best broker is the one that allows you to buy stocks effortlessly. It must have an intuitive platform from which you access all the services and functions of the broker. For convenience, make sure the broker also has a demo account. This will allow you to discover the platform for free. So, when actually investing, things will be easier.

Offer of Shares

You should also inform yourself about the stock offering to make the best choice. In fact, the broker must offer you the securities of companies that interest you. It is in this sense that DEGIRO is one of the best brokers for buying stocks. It gives you access to virtually all publicly traded company securities. You also have Vantage FX which is a good plan for trading CFDs on the best USA stocks.

Cost

Also take into account the broker's fees before choosing it. In fact, all brokers earn money from your operations. Typically, they charge the following fees:

• swap
• spreads
• Commissions

You should therefore choose the broker who offers the lowest rates on these fees. In this way, you can invest in stocks without breaking the bank.

Mobile Compatibility

The best broker is the one that allows you to invest in stocks from your mobile. Therefore, you must choose a broker whose site is compatible with smartphones. In the best case, the broker must have a mobile application compatible with all terminals. Thus, you can install all the functions of the broker directly on your Android or IOS smartphone.

Security and Ease of Transactions

Make sure the broker provides easy and secure transactions. To do this, it must offer you the best payment methods. We can cite as an example:

• SEPA and international bank transfers.
• Credit card (VISA, MASTERCARD, ETC)
• Electronic wallet (Skrill, PayPal, Neteller, etc).

These different transaction methods are very fast. Their transaction times vary between one and three days. Also, deposits via these means of payment are instantaneous.

Available Functions

Finally, always check the functionality of the action broker to ensure its quality. For example, if the broker has a copy trading function, it is preferred. This detail will allow you to invest with greater simplicity.
Here are the different points that you must pay attention to when choosing the best stock broker.

7 Tips for Buying Stocks

Choosing the Best Broker to Invest

The first advice we give you is to choose the best stock broker. DEGIRO is the ideal option. This broker perfectly meets all the selection criteria recently stated. If you choose this broker, you can buy stocks with ease and fewer fees.

Follow the Stock Price in Real Time

To make a career in trading stocks on the stock exchange, you need to monitor their prices in real time. This lets you know the price level of any stock at a specific time. In this way, you can anticipate its future movements depending on what is happening.

Develop an Effective Investment Strategy

To invest in stocks on the stock market effectively, you must have a strategy. Otherwise, you will make uncontrolled investments, and this is the best way to lose your money. So, depending on your expectations and your availability, define a strategy that suits you. Then, stick to this strategy during your investments.

Know When to Stop

Buying stocks also means closing your positions. So, you need to know when to stop. To begin with, closing your positions often allows you to avoid the worst, as the stock continues to fall. In a winning situation, stopping your position allows you to take advantage of the profits. Thus, you will come back later with more lucidity.

Diversify your investments

You should not place your eggs in one basket when buying shares on the stock market. You will be better off investing in several companies from different sectors. However, make sure you only choose profitable companies. Therefore, when one of your favorite stocks falls, you will be able to take advantage of the profits that others bring.

Be selfconfident

Self-confidence is certainly the most essential quality when thinking about investing. It allows you to overcome fear and doubt. Which is very important in the context of an investment decision. To develop this psychology, here are some tips:

• Stand tall
• Adopt a positive attitude

After a mistake, do not lament, try to learn from it.

Don't Rush

Patience is an essential quality if you want to become a good stock market investor. Everyone would like investments to bear fruit quickly. However, this is not always the case. And without patience, some could give up very quickly and never realize any added value. Keep in mind that it is not you who decide, but the law of the market. Some tips for developing more patience:

• Be consistent with your goals
• Learn to control your emotions

The Best Brokers to Buy Stocks 2024

• DEGIRO : Best Stock Broker in terms of Fees
• Vantage FX : Best CFD Broker on Stocks
• AvaTrade : The Best Tools for Trading Stocks

When is the Best Time to Buy Stocks on the Stock Exchange?

At the opening of the stock market

Now is the best time to buy stocks. Indeed, it is at the opening of the stock market that the majority of traders act on the markets. This creates a large flow of transactions which causes strong movements in the share price.

In other words, the opening of the stock market is the time when a stock is most likely to experience an upward or downward impulse. To benefit from this, you must also buy shares at that specific time.

Here are the opening hours of the main stock exchanges in the world:

• New York stock market : 9:30 a.m. to 16 p.m. local time.
• London Stock Exchange : 8 a.m. to 16:30 p.m. local time.
• Tokyo Stock Exchange : 9 a.m. to 15 p.m. local time, with lunch from 11:30 a.m. to 12:30 p.m.
• Paris stock exchange : 9 a.m. to 17:30 p.m. local time.

When Publishing the Company's Financial Results

Most publicly traded companies report their financial activities to the general public. From this, investors can know whether the company has made a profit or not. If the results are positive, they will certainly buy more shares.

Therefore, you must open positions when the financial results are published. Especially if the results are positive.

During a Significant Economic Event

You should buy stocks whenever an event occurs that could positively impact the economy. For example, if the price of a barrel of oil increases, then you should buy shares of companies in the oil sector while this information is still viral.

Buying Stocks Full Time or as a Hobby – Which Option to Adopt?

It's up to you to choose whether you want to buy stocks full time or as a hobby. It all depends on your availability. If you have too many things to do, investing as a hobby is a good alternative. In this case, it is better to invest in stocks for the long term. This way, you can let your positions run for months or weeks.

On the other hand, if you want to make stock trading your main activity, you can invest in the short term. This way, you can spend your days making as many investments as possible. Whatever your choice, these two hypotheses are profitable for those who know how to do it.

Buying Stocks – How Much Does It Cost?

There is no standard cost for purchasing shares. It first depends on the stock price and the amount of your investment. Then, the fees applied by the broker come into play. As a reminder, each broker has its own rates. So the cost of buying shares on a broker varies from one broker to another. Hence the importance of taking broker fees into account before registering to buy shares.

Avantages Investing in Stocks

The profitability

Profitability is certainly the firstvantage when we talk about investing in the stock market. Moreover, numerous statistics have shown that it is the most profitable investment over a long period. Indeed, the long-term return of the stock is much higher than that of cash or fixed income securities. Furthermore, the stock offers two potential sources of profitability: the dividend and the capital gain.

Simplicity and Accessibility

When investing in the stock market, there are many envelopes in which you can place your investments. PEA, securities account or even life insurance, various options are available. What's more, you can have access to these envelopes in almost all banks and of course at the online broker. This is why we often say that investing in the stock market is both simple and open to everyone.

Liquidity

Thanks to the liquidity of shares listed on the stock exchange, you can access your capital very quickly. Negotiation is all the easier because several billion euros pass through the Paris Stock Exchange. To recover your funds, simply liquidate your positions and withdraw your capital.

Protection

One of thevantageThe major advantages of investing in the stock market is that it allows you to protect your assets. Indeed, taxes and inflation can erode the latter. But with a stock purchase, you can enjoy the best long-term tax treatment. Thus, you will be spared from the negative effects of these factors.

Buying Stocks – What are the Disadvantages?

Risk of Loss

Regardless of the forecasts, the risk of loss is potentially high on stocks. So, even using the best broker and the best analysis tools, nothing is guaranteed. You can still lose money buying stocks.

Volatility

Stock prices are impacted by several factors (rumors, economic events, trends, etc.). As a result, stock prices are subject to high volatility. This is a bit of a nuisance for investors who are trying to anticipate the future movements of any stock.

Buying Stocks – How to Train in Trading?

To train, all you have to do is register with a broker with a demo account as well as a good training program. Thanks to the broker's training, you will receive the basics of stock trading. Then you can apply the lessons learned in a free demo account. As for real experience, you will get it by investing real money.
There are also excellent brokers in terms of training, such as AvaTrade.

What Are the Different Types of Actions?

Value Stocks

These are securities of companies whose price is relatively low compared to certain criteria. Therefore, value stocks can be understood as depreciated stocks. These are areas of investment to be favored if you want to invest for the long term. You are therefore betting on a potential bullish impulse in the years to come.

As an example of a valuable action, you have for example that of Aurora Cannabis. A stock that is currently cheaper, but which has a strong chance of rising.

Defensive Actions

If you want to take as little risk as possible, you're better off buying defensive stocks. As their names suggest, these are assets that keep you on track. Generally, different economic events have the least effect on these actions. Defensive actions are most often those of companies that provide water, electricity, and all other basic services.

These companies are not really influenced by the economic situation. To invest in this type of asset, we advise you tobuy Engie shares for example.

Dividend Shares

These are simply shares of companies that return part of their profits to shareholders. Thus, a dividend stock can be confused with the previous types, as long as the company in question remunerates shareholders. This type of asset is worth looking for if you want to own real company shares. If this is the case, you can buy dividend stocks such as Pernod Ricard.

Growth Stocks

These are stocks whose price is already quite impressive. So-called growth companies are those that achieve excellent figures over several consecutive years. They also propose new values ​​that adapt to the challenges of today and tomorrow. As an example of growth stocks, you have Tesla. You have to buy them to enjoy the prestige of these types of companies.

What Strategy to Buy Stocks?

• Swing Trading
• Day Trading
• Scalping

Swing Trading

This is a long-term investment strategy. It consists of buying shares and letting the positions run for a long period of time. So if you keep your shares for several months or years, you are considered a Swing Trader on stocks.

This strategy is beneficial in that it allows you to take advantage of all price variations over a long period of time. However, it involves heavy expenses in terms of fees. Even more so if the broker charges Swaps (nocturnal position holding fees).

Day Trading

This other strategy is for the short term. You are considered a Day Trader if you close your positions within 24 hours. In other words, this strategy consists of buying shares only for one day. Before 24 hours, you will need to liquidate your positions.

Scalping

Here is another very short-term investment strategy. It amounts to buying shares, and selling them a few minutes later. As a result, it allows you to make the most of the volatility of stocks on the stock market. However, if you opt for this strategy, you must have a good analytical mind, responsiveness, and time to devote to this form of investment.

Which Shares to Buy in 2024?

Apple

If you want to invest in the stock market, buy stocks Apple is the first business to think about. This American company is one of the few to have effectively resisted the economic consequences of the crisis caused by COVID-19. This proves that Apple is a sure value in its sector of activity.

It also achieved an increase in its revenues to the tune of 60 billion. Note also that Apple has a large capitalization of 2000 billion. With the recent release of its new smartphone, the IPhone 13, there is a strong chance that the action Apple explodes again. Proof that this is the best option for buying stocks.

Amazon

It is the world's number one e-commerce company. Buy Amazon Stock is a great idea. This company continues to expand its range of services, and offers values ​​that attract more investors. Amazon has its own Streaming channel, which is already ranked among the largest in the world.

Additionally, thousands of people continue to purchase sundries online. The proof, in 2020 it achieved a turnover of 44 billion in 2020. Nowadays, Amazon is capitalized at 1640 billion.

Google

Google has been among the best stocks to buy in the world for several years now. This is because it is the world's leading search engine. More than 90% of internet searches are done on Google.

In addition, the company has developed a paid cloud service that brings in several billion dollars each year. Its current capitalization is around $1004 billion. Proving buy Google stock is a good option.

Netflix

Here is the leader in global streaming: Netflix. This company benefits from incredible operational excellence. She also made a increase of 73,5% in its shares in 2020. While COVID was in full swing, Netflix reacted accordingly, which allowed it to achieve such a feat.

We advise you tobuy Netflix stock because its number of subscribers is only increasing. Additionally, she creates new original content with stars such as SCH and other youth icons. This type of content will bring in more money for Netflix. So, invest to benefit from it!

Tesla

The Tesla company and its manager Elon Musk are real stars of the stock market in 2024. Why? Simply because Tesla is one of the largest automobile manufacturers in the world. This is also due to the consistency of its income. Tesla has also made 5 consecutive profits during its various financial results for 2020.
With a capitalization of 393 billion this company is one of the most efficient in the world.

For this reason, we advise you tobuy Tesla stock.

So here are the best stocks to buy in 2024 around the world. Besides this, you have other attractive and profitable actions.

The Best French Actions

You can find these securities on Euronext Paris and in the index CAC 40.

With which stock market products to buy shares?

• CFD
• Futures

These are the main stock market products you can use to buy stocks. Both of these instruments are purely speculative. In other words, you will not be able to receive dividends if you invest via one of these methods. They consist of speculating on stock prices without holding the underlying asset. This also allows you to benefit from the leverage granted by the broker.

Should You Buy Stocks or Trade Stocks?

It is better to trade the price of a stock rather than buying directly. Indeed, trading offers more possibilities than direct cash purchase. First, you have the opportunity to make money without owning the stock. You will only have to use the main stock market products mentioned above. Then, trading also allows you to take bearish positions. Which means you can take advantage of a stock's decline and make money. You can't do the same if you actually buy the shares.

Despite everything, buying shares for cash is also a good initiative. Even more so if you want to become a real shareholder and receive dividends. So, despite our preference for trading, you can also choose to actually invest. You choose !

How to Invest in Stocks Without a Broker?

• Go through the Direct Stock Purchase Plan 

The first method to invest in stocks without a broker is to go through the direct stock purchase plan or the DSPP. This is a special program adopted by corporations to allow small, grassroots investors to purchase property directly from the company. A transfer agent or administrator will then be responsible for managing the transactions.

• Use a Specialized Donations Service

In addition, there is another way to be able to acquire shares without the intermediary of a broker. Through a specialist gifting service, you can purchase a single share. However, you will only be able to profit from your shares after paying a broker a nuisance fee of $250 or $500.

• Enroll in Dividend Reinvestment Programs

It is also possible to buy shares without a broker by registering for dividend reinvestment or detachment programs. We are talking here about a RRD. To be clear, DRIPs allow you to acquire cash dividends paid by the company you own. Then you can reinvest them in additional stocks.

Final Words – Buy Stocks in 2024

Ultimately, buying shares on the stock market is a good alternative. However, you must identify the most profitable actions to ensure your success. At the same time you must choose the best broker for this business. Indeed, the choice of broker will have a direct impact on your profitability. We advise you to use DEGIRO which in our opinion is the best site to buy stocks. Finally, be aware of the risk that arises from your investments. Above all, follow the advice given above.

 

How to Buy Stock in a Company?

To buy securities, you must first contact a financial intermediary. The goal is to be able to request the opening of a securities account, a PEA or savings plan in action or even life insurance.

What is the Most Profitable Stock?

In order to identify whether a stock is profitable or not, it is necessary to determine the price/earnings ratio. This ratio between 12 and 18 allows to know the number of years of profits necessary to repay the purchase price of the action. The higher the ration, the more overvalued the stock.

How to Buy Stocks in 5 Steps?

To buy shares, you must start by finding your broker (1). Next, open your stock exchange trading account (2). Once the account is open, log in and deposit your funds (3). Afterwards, you will have to buy the shares of your choice (4). Finally, track your stock price (5).

How is the Shareholder Remunerated?

A shareholder is an equity investor. This particular type of partner is remunerated by dividends paid periodically by the company. Moreover, its financial risk taking will be paid for by the stock market appreciation of the value of its invested capital.

For any other questions regarding stock investing, feel free to leave us a comment.