Sunday, 3 February 2008

Stock beginner guide – Buy and sell stock

Part 5

Once the broker account is opened, you are ready to buy/sell stock. You are excited and raring to go, but what to buy?

If you are following the fundamental analysis way, this is the typical process.

Research -> Wish list -> Buy -> Hold -> Sell

Research – Perform research on the market to identify stock that you are interested.

Wish list – Compile a buy list base on the research and set the entry price for each of them

Buy – When the price is right, you start buying the share

Hold – You continue to hold on to the company share

Sell – When the stock price hit your target or does not meet your objective anymore, sell it

This is just an illustration on the steps you can take. Many investors have their own decision making system. Of course, at the end of the day, everyone wish to make money.

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