Please can someone tell me how to go about trading in stocks online, how do i setup an account?
Question:
Answer:
Since you in west africa that might be very very hard for you to invest. Most companies allow you to sign up online, I use Sogoinvest.com but you'll have to look at a company that does this in your country. I'm sure theres one company that does it.
I'm assuming you are in the US.
First you must have a brokerage account. I suggest Scottrade because of low commissions. It's fine for beginners. Go to Scottrade.com to download an application. There will be a minimum dollar figure you'll have to deposit. Second, as a beginner, never invest any money you'll need in the next 10 years. And, if you don't own a house, I suggest saving for that with CD's first. They are yielding over 5% now and totally safe. Finally, as you are learning, I recommend buying a book on buying mutual funds. Mutual funds are baskets of stocks managed by a professional. They will be offered via the brokerage account. They are less risky than stocks. Then after you get used to mutual funds you can start to buy stocks. But read a lot. I am a part time trader and make a lot, but to get to my level of knowledge, I lost a lot first. Trading is not for everyone, but investing is. It takes a long time to learn to manage risk. So, be prepared for a long learning curve and read all you can. Not just on the internet, where the quality is shakey. Use books. Many 'answerers' have offered many good books.
Good luck.
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