NASDAQ and Chron Small Business offer information on how to buy and sell stocks, as noted by the official website of each organization. A person can trade stocks professionally or leisurely but must develop the appropriate strategy based on the desired level of risk and reward potential.
The NASDAQ website states that a beginner should first consider a balanced portfolio. This type of portfolio may include multiple stocks from various industries. In addition, it can include securities that are representative of some of the common index funds, such as the S&P 500. McGraw Hill Financial states that the S&P 500 captures 500 leading companies and their associated U.S. equities.
Chron Small Business lists the appropriate steps in chronological order to be a successful stock trader. First, a potential stock trader should attempt to pay off debt to ensure sufficient capital is available. Next, a trader should open a separate bank account specifically dedicated to trading. After that, it is important to keep a trading log, documenting several companies of interest. Finally, it is necessary to open an account at an online brokerage to facilitate the trading. Some of the most-common online brokerages include eTrade, Scottrade, Fidelity and Charles Schwab, as noted by the official Nasdaq website.