If you’re like me, chances are you don’t know a lot about the stock market. You do know, however, that some people are making a lot of money buying and selling stocks from home. Michelle Price’s book How to Buy Stocks Online: For All Experience Levels, Step-By-Step Guidance, and Without a Broker, newly updated for 2014, is an excellent and must-read guide to help you understand what a stock is, how to choose and buy stocks, and how to manage your growing investment portfolio.
Although this book describes itself as “for all experience levels,” it is really designed for the beginner: that is, someone who has never purchased stocks online before. The first third of the book explains how stocks work and how investors make money in simple, easy to understand language. The rest of the book takes the first-time investor through all of the necessary steps involved in purchasing stocks online, including making an initial budget, doing background research on stocks and industries, building a portfolio, maintaining a portfolio, and knowing when to sell.
Michelle Price understands that a lot of people don’t know anything about the stock market, and so she takes the time to explain every term in detail. This is why How to Buy Stocks Online is truly for the beginning investor; someone who already knows, for example, how a stock differs from a bond is likely to find themselves skimming through chapters.
Price also takes the time to make sure new investors understand about investing responsibly. One of the key mistakes that new entrants to the stock market often make is failing to calculate risk. This includes not only the obvious risk of investing more money than you can afford to lose, but the other, less-obvious risk factors, like not taking the time to research stocks, or not creating a balanced portfolio.
Although Price’s book states that it will tell you how to buy stocks “without a broker,” she actually means “without an in-person broker.” When you buy stocks online, you do need to work with an online broker, which technically means a brokerage firm’s website. That is: you don’t call up a person and ask that person to buy and sell stocks on your behalf; you visit a website and choose the stocks you want to buy and sell.
Of course, these online brokers cost a little bit of money, but that’s the price you have to pay to get started in the stock market. Just remember, there are always ways to save on costs, especially when buying online; if you want to work with the brokerage site Optionshouse, for example, make sure you look for an Optionshouse promo code to find some great deals before you pay the full price online. There are numerous brokerage sites available, and Price explains how to do your research so that you can find the best site for you. Make sure you include broker fees in your total stock budget, so you always know what you are paying.
If you have never bought or sold stocks before, but are looking to get into investing, Michelle Price’s How to Buy Stocks Online is highly recommended. Expect to spend at least a full month doing the budgeting and research that Price recommends before buying your first stock, and six months to a year of learning about the market before you start to truly understand how to develop an investment strategy.
Becoming a skilled investor takes time, practice, and patience. When people decide to invest in the stock market, they are starting on a project that is intended to last for a lifetime. Michelle Price’s book will help you take that first, all-important step.