I'm new to this. Can I sell or buy stock by myself?
Everyone's new to investing in stocks at some point - good for you to ask this very basic but important question right up front!
The short answer is, yes you can. However, there is also the question of should you buy stocks in individual companies, which I'll cover later.
In terms of buying a stock yourself, the easiest way to do so is to open up a brokerage account with a discount provider such as Charles Schwab or Scottrade. Once your account is open and funded, you can login and buy and sell shares of stocks as often as you'd like. Most discount brokerage providers charge about $8 or $9 per trade.
Make sure you look up the correct stock symbol and do your trading during the hours when the market is open rather than after hours when bid/ask spreads tend to widen and you could end up paying a premium for shares. For thinly traded shares (small companies that average few shares traded per day), consider putting a Limit Order in place to make sure you don't pay a premium. Here's a link that talks about what Limit Orders are:
However, rather than buying stocks in individual companies, you may want to consider investing in low cost ETF's (Exchange Traded Funds) that track major market indices such as the S&P 500. By buying shares in the ETF, you are effectively buying stock in dozens, if not hundreds of different companies and spreading out your risk rather than putting all of your eggs in one basket.
I personally no longer buy shares of individual stock for this very reason and recommend the same to all of my clients. If for some reason you still feel the need to buy stocks in individual companies, consider limiting this to no more than 5-10% of your total portfolio.
Good luck with getting started!
With Kind Regards,
Yes, you can sell or buy stock by yourself. You simply open an account online with a company like Charles Schwab, Fidelity, TD Ameritrade, Scottrade, E-trade (these are just examples, not recommendations, there are many other places to open a brokerage account.) After opening your account, you will deposit money usually by linking your checking account, and then you're ready to use that money to buy the stock you want.
However, do not equate the ease of opening an account with the ease of making good investment decisions. The fact that you are "new to this" is a huge red flag. I highly recommend you speak to a qualified advisor before making your first investment purchase.
Also, if there was only one book I could recommend to a new investor it would be The Intelligent Investor by Benjamin Graham.
Smart investing can be highly satisfying so take it slow, do your research, and seek out an advisor that has your best interest in mind.
Hope that helps, and happy investing!
Yes, you can absolutely do that, investing and managing on your own. Before I became a financial professional, I used to be a DIY investor myself. It’s both exciting and nervous because you know you can do the trades by click a button but you are not sure if you made the right one.
There are many things to consider when you invest on your own: 1) What’s your goal--generating a great investment return, income, or both? Your specific goal will direct you in selecting what kind of stocks you need to own. 2) What’s the investment vehicle, taxable, tax-deferred, or tax exempt to hold your investment? Depending on where you invest, the dividends and capital gains can either be taxed or not at all. If you’re already in a high-tax bracket, you may accidently have to pay an extra 3.8% net investment income surtax should you chose the wrong vehicle to invest. 3) Are you diversified enough, or are you putting all the money in one basket? Until you have the time to study the investment journal, how can you be sure you have the most diversification to reduce the investment risks?
Those are just some initial questions for you to consider. There’s nothing wrong to be a DIY investor, but sometimes a professional’s second opinion is worth more the cost for that conversion. Best!
Great question for Investopedia!
You can certainly give the instruction to buy or sell a given stock on your behalf. Share of publicly traded companies are generally traded on exchanges such as the New York Stock Exchange (NYSE). Your cash and any shares you own are generally held by a custodian such as Charles Schwab, Scottrade, TD Ameritrade, etc. ou simply give the instruction to buy or sell to the custodian. Visit one or more of those sites and open a practice account--no real money is needed! Try out the system for yourself. Once you become comfortable and after you do plenty of research, you may want to buy and sell. I hope that helps. Good luck!
Yes, you can definitely buy and sell your own stocks.
When buying or selling stocks on your own I always recommend that people use an online brokerage platform. There are a few that offer really great services like; Vanguard, Schwab, Scottrade and also Fidelity.
If you're new to investing you can also purchase securities directly through a broker. The advantage to doing things this way is that you will have someone that you can consult with and make sure that your stock picks are in line with your risk tolerance and investment time horizon. The downside is, when you work with a broker you have to pay brokerage fees.
People who pick out individual stocks love the do-it-yourself capabilities of the above online brokerage services. So if you're concerned about something like fees, then this may be a really good way to cut down on paying extra fees and expenses that one would normally incur working with a broker.