How to Buy Stocks on the Stock Exchange: Beginner’s Guide [2021]

By  //  August 6, 2021

How to buy stocks today? Shares represent one of the most traditional investments of savers. It is widely believed that investing in stocks allows you to generate high profits against rather low risks. And indeed in theory it is true.

Unfortunately, this is not always the case, especially with regard to small investors who often pay dearly for a wrong operation or, even worse, a sub-optimal choice of the platform used to invest. This guide details how to buy stocks without making these painful mistakes. 

How to buy stocks

Investing in the stock markets represents a great opportunity to generate high profits, an activity that is aimed at both professionals and beginners. The first step is to understand where and how the shares are bought. In this regard, it is necessary to carefully evaluate the security to be purchased, inquiring about the fundamentals of the issuing company and carefully analyzing what future forecasts are.

Today, thanks to the Internet, it is very easy to find a series of information on any company present. You can also get helping tools easily. For example, the trading apps can help you trade on the Stock Exchange.

It should be emphasized that through an equity investment you buy a company’s share of capital: if this rises over time, your profits also grow, but when it falls, you lose money.

Very often beginners think that to make money on the stock market, they have to buy shares when the price is low and resell them when the price increases. This is a strategy that works but it is certainly not the only one possible.

The best platforms for buying shares, in fact, also offer another operation: short selling.

Selling a share short is equivalent to selling a share that you do not actually own (which is why the operation is called short). It is a purely speculative operation that generates a profit when the price of a share falls.

Those who work with platforms that allow shares to be sold short have the opportunity to always earn, both when the price of the shares rises and when it falls. All that needs to be done is a correct forecast on the progress of an action.

Where to buy stocks

At this point, let’s move on to the most practical (and probably the most useful) part of this guide: where to buy stocks. The choice of the platform to invest in the stock market is really crucial and in most cases it determines the difference between who gains and who loses money.

What are the key features of a platform to buy shares?

Safe and reliable: nobody likes to be scammed, which is why it is essential that the chosen platform is authorized and regulated. In this case it is guaranteed by the competent supervisory authorities. It is important to remember that buying shares with an unauthorized platform is really risky.

Completely free and without commissions: paying commissions, unfortunately, prevents those who start with a small capital from buying shares. 

Easy to use: a beginner cannot and should not waste time and energy learning a complex and cumbersome platform. The good news is that today there are great platforms to buy stocks quickly and easily.

Are you now ready to buy stocks?