What Is The Process Of Trading Stocks?

What is the process of trading stocks? There are different ways to trade stocks, either online or through a brokerage firm or private broker. There are a couple of different ways to trade stocks. One is...

There are a couple of different ways to trade stocks. One is with the full service brokerage firm where you basically open up an account with a brokerage firm like Merrill Lynch or a place like that and you tell your broker "I don't know what I am doing here so you give me recommendation." So they call you or e-mail you with recommendations on stocks or companies that are good investments and then you say "I would like to do that" or "no that one wasn't for me." You end up paying a much higher commission or fee for the post service broker to provide that service for you. The other way to go which has become very popular in the last 5 or 10 years is for do-it-yourself investors. You educate yourself on the stock market investing through reading magazines, books, or watching CNBC (that's a financial news network on TV). You make your own decisions and you do your trading through discount brokers like Brown and Company, Ameritrade or an e-trade. Instead of paying a couple of $100 in commissions every time you buy and every time you sell, you might pay $5 or $10 in commission every time you buy or sell. But you make all your own decisions. You get no advice from anybody at the brokerage firm on what stocks you should be buying or what mutual fund you should be buying or selling.

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