(BBB) -GameStop stock saga has inspired many potential investors to try their hand at stock trading through the program. In fact, MarketWatch reports that downloads of mobile apps have increased in February, a trend that is likely to continue.
Stock trading programs such as Robinhood, E * Trade, TD Ameritrade և Webull have made the stock market game easier than ever. However, regardless of the platform, buying stocks always has both financial gain and loss potential. Be sure to follow these tips before investing in a stock trading app.
- Educate yourself about stock markets. The only way to succeed in mobile stock trading is to do your homework. Learn the basics of investing. Familiarize yourself with concepts such as cost ratio, trade commissions, asset placement, individual stocks, stock trading, and more. Learn more about how stock markets work at Investor.gov.
- Choose a reputable securities trading program. The trading program you choose is more than just a trading platform. it is the company that will serve as your intermediary. Make sure that any company you observe has a good reputation, is legally licensed, and is registered with the relevant government agencies.
- Compare some commercial applications. NerdWallet advises new investors to “look for an intermediary who can teach them the tools of the trade through educational articles, online tutorials and in-person seminars.” Examine thoroughly և compare each program, paying attention to their fees, minimum trade, stock analysis tools ական educational offers, choosing the one that best suits your needs.
- Set a budget. Make sure you are in good financial shape to start a business. Before you can spend money on business, you must already have money available as an emergency fund, money that regularly goes into your retirement. Because trading is risky, you should never invest in money that you could not lose. Keep in mind that it does not make sense to invest more than 10 percent of your portfolio in individual stocks, as this can make your savings extremely volatile, CNN advises. If you do not have much money to invest, you can look for a “micro-investment” platform. These services allow you to buy shares in a larger fund.
- Understand the rules of the trade. SEC regulations dictate how trades can take place. Get to know the rules so you don’t break them. For example, according to the SEC, “In the case of a cash account, you must pay before the stock can be sold. If you buy and sell stocks before you pay for them, that’s you free walkwhich violates the provisions of the Federal Reserve Council’s extension of lending. ” If you are caught in freeriding, your account will be frozen for 90 days.
- Learn how trading will affect your taxes. Capital gains taxes are taxes you pay on stock gains. In general, these taxes are higher if you keep the shares for less than a year. Learn how to report capital gains at IRS.gov.
- Hot warn of “hot tips”. Sponsored ads և online forums promoting “failed” stocks that are “guaranteed” to make you huge profits for small investments (if you do now) are most likely fake or part of a racket designed to temporarily raise prices save: Do not fall for this kind of “inner advice”. The balance reminds traders that real profit comes only after thorough research. Successful selection of individual stocks is difficult, but large-scale comparative analysis can help ensure that you add the best stocks to your portfolio. ”
- Watch out for scams. Watch out for investment scams. Stick to SEC-registered brokers և Avoid anyone who uses high-pressure selling strategies or pyramid schemes. Understand that some scammers go so far as to send you regular reports showing excellent returns on your investments when, in fact, it did not even exist.
- Keep learning. Once you are familiar with the basics of trading, you can choose to move on to more advanced trading strategies such as trading options, margin trading and short stocks. Remember, though, that these strategies are very risky. Do not try them until you have gained some trading experience կրկին again, never buy money that you can not afford to lose.
- In fact, it is worse then worthless, it consumes time and resources but returns no sales. If you want to try the stock market, but you are not ready to risk real money, try “virtual trading” first. Many online brokers offer platforms where you can learn the ropes by buying and selling virtual stocks.
To learn more about investment fraud, read the FINRA Investor Alert. Stock Spams and Scams: To find a business you can trust, visit BBB.org. To report fraud, visit BBB.org/ScamTracker
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