If you're looking to learn about stocks and the stock market, there are some essential items that you'll need to get started. The following is a list of things that can be helpful when learning about stocks:
1. A brokerage account
There are two types of brokerage accounts: A cash account, where you deposit money and buy and sell stocks with it, and a margin account, where you borrow money from the brokerage firm to buy more stock. You can open a cash account with any brokerage firm and place trades directly through them. You'll be able to buy and sell stocks right away, but there are certain limitations on how much money you can have in your account at any given time, depending on what type of investor you are.
2. Stocks themselves
You need to understand what stocks are before you can get involved in trading them. Stocks represent ownership in a company and give the owner a percentage of the company’s profits (dividends). If the company does well, the stock price goes up to reflect this success. If it does poorly over time, the stock price will fall until it hits zero and becomes worthless (assuming no other investors buy into it). Stocks can be purchased from an online broker or someone directly through an online marketplace like eBay or Craigslist.
3. A computer
If you're interested in learning about stocks, you'll need a computer first. If you don't have one, it's time to get one. If you're going to be trading stocks, find the best computer for stock trading. It can be a desktop or a laptop, but it needs to be able to run the programs necessary to research stocks. If you're new to computers, don't worry — they're easy to use once you get used to them. All you need is access to the internet and some basic knowledge of how computers work (which can be learned easily).
4. Online trading platforms
Online trading platforms are the most common way to buy and sell stocks. They're also the easiest and most convenient way to track your portfolio and make trades. These services resemble online banking portals in that you'll have access to your accounts from one website or app.
There are two main types of online trading platforms: brokerage firms and discount brokerages. Brokerage firms are full-service financial institutions that offer investment advice, research, trading tools, and more. Discount brokers provide a limited range of services at lower prices than full-service brokers, with no advice or research included.
Discount brokers are often more cost-effective for beginners because they don't charge commissions on trades; they only earn money if you lose money by buying and selling shares of stock. However, some discount brokers charge fees for certain transactions like mutual funds or options trading. Most discount brokerages charge fees for margin accounts (where you borrow money from them).
5. Mobile apps
Mobile apps are the next step in the evolution of mobile technology. They allow you to use your smartphone or tablet device as a mini-computer. You can use it for communication, entertainment, gaming, and even work. The top mobile apps for stock trading include:
Robinhood - This app is one of the most popular with investors. The platform also has some great educational resources for beginners.
StockTwits - This is another social media platform that has gained popularity among traders. It's not just a platform for reading tweets about stocks (although there is plenty of that) but also a place where people can share ideas and collaborate on trading strategies.
There are a variety of reasons one might want to learn about stocks. It could be to become more financially responsible, invest for retirement, your job, or simply see how businesses work. Whatever the reason, it is essential to know that this learning process can be pretty involved… but with the right tools.