Step wise Instructions How to buy a Stock

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How to Buy a Stock.

Before you buy any stock. The following few tips will be helpful.

Everyone wants to make money and get rich in the shortest possible time and in a fairway.

There is no shortcut. Later or sooner one has to learn and update stocks terminology. Or maybe you will be on the hook or you can say you are just baiting.

Here are few quick tips and step-wise instructions.

Before you invest in stocks, make sure you have the means to look after your immediate family affairs and future needs as well. By doing this, you will have peace of mind.

This implies that one must have saved money, but make sure you do not invest all the savings. The Thumb rule is to invest 20% and part of it. Never invest all of your money, and also not in a single stock or ETF. Put your money in different baskets, that’s what the experts say. Never put your eggs in one basket.

Here are few steps for beginners. It’s for those, who have no idea where to look for information.

1. Open the Yahoo finance search window and type the ticker symbol.

2. Check the value of the stock.

3. Check the 52 weeks period for ups and downs.

4.  Look for the performance of the stock price in the last 1 year or 5 years.

5. See the trend, if it's going up or down.

6. Check the P/E value. If it's on the higher side, means it's very much in demand. 
P is the price which the buyers are willing to pay.

E is the earnings. The more the earnings, companies do pay dividends, which can be 
create a snowball affect in the longer run and is very good source of income for 
passive investors.

P/E ratio of 13 to 15 is a great sign. Higher ratios means, companies are pretty 
much in demand but it can be risky.  New Technology companies do fall in this categories.

7. Look for the liabilities of the companions.

8. Look for the assets.

9. Look for how much a company is diversified. If its so, this means they are serious 
in doing business.

10. Look for the no of years they have been in operations.

11. Open a TFSA ( or RRSP) account in your bank or with any brokerages like wealth 
simple or questrade.

12. Link your Banking account with the trade account.

13. Transfer some amount of money, say $200 to trade TFSA account.

12. Search for the stock information in search bar of the trade app, by inserting 
the ticker value.

13. Buy the the number of stocks you want to buy and complete the process.
Play with the "app" and get familarised with te App feature.

Thats all what is required. After its upto you how much you want to invest. Keep an 
eye on the update of your portfolio from time to time.
These guidelines are not ultimate and your point of view might be different. This is 
for educational purposes and taking help of a financial advisor could be the best 
next option if you are not confident in managing your portfolio yourself.