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Nowadays buying and selling stocks are made easier due to technological advancement, so a newbie can easily step into this field without any fear. It will take at least three to five days to create and fund a brokerage account. It is advisable to research the stock you are about to buy before accessing the trade, as stock is volatile and cannot be predicted newbie must be conscious of the risk factor involved in the trade.

 

Instructions:

1. The first step to do is to select a broker who will buy and sell the stock. Brokers fall under three categories: full service, discount and online. Full service brokers charge high commissions and fees but provide financial research and insight. Discount brokers charge less compared to full service brokers but don’t provide the same level of research. Online brokers charge very less and provide free charts. But compared with other brokers they offer little financial insight.

2. To open an account, you need to request an application form. If your brokers have an online account then your process are made quicker. While filling the application form you need to have W-8 form, social security number and photo identification number with you. You can request W-8 form from the broker if you don’t have it.

3. Depending on the broker the minimum amount required to open an account varies. You can fund the account through check or bank transfer or wire transfer. The days required to complete it may last from one to three days which entirely depends on the brokers.

4. You have to determine the price to buy or sell stock. There are two methods involved in it. One is limit order and other is market order. In limit order one can purchase a security at or below a specified price or sell a security at or above a specified price. In contrast to it market order allow the investors to buy or sell security at current market value.

5. The next step you need to do is to evaluate the type of order transaction you would like to place. To buy or sell securities in one order you have   two options one is “all” and “ none”. You may have multiple buy or sell orders if you select “no instructions”. If you need to save money you can opt for “all” or “none”. Brokers charge a fee for each transaction.

6.  If you have online account then log on to it and select trade then fill in the price, order type and instruction. If you need to sell the security then select “sell ”and if you need to buy the security then go for “buy”. If you cannot log in or don’t have online broker you can provide the information to the broker.