If you are interested in buying stocks then you are going to need a platform to buy the stocks on. These platforms like Commsec and ETrade (there are plenty to choose from) are relatively easy to join. There are slight variations depending on whether you want to trade or invest, but generally they are very similar and offer a range of products.
My first warning is don’t get sucked into trading because there are literally 100’s of products to buy and sell. Many young investors I have spoken to get drawn in and find themselves buying and selling commodities, currencies and other exotic options without understanding what these product are. Remember trading platforms earn money when you trade – they don’t care too much about whether you are making money or not.
In establishing your investing platform, you will need to link to a bank account which is the source of withdrawals and deposits for your investments and so when you buy or sell shares the proceeds are withdrawn or placed into the account. Your dividends will also go into this account and in some cases, platforms will pay you a small rate of interest for having the money int the account.
Now, there are costs with these platforms. When you buy and sell shares the platform company charges a small fee (a small percentage of the total buy or sell order although some charge a flat fee) for all your buying and selling. So of course the more you buy and sell the more expensive the trading costs. Some platforms do offer a flat fee and these can be good value depending on how large your funds are.
Once you have bought some stocks, you will be able to monitor them on a daily basis with the ASX open between 10am and 4pm when you can buy or sell. You will be able to see the stock price change in real time although there is usually a small delay, and also a large range of information regarding the stock such as the “bid” and “ask” price, stock volume (total amount of stock bought or sold) and all sorts of information and indicators that assist you to determine if you want to buy or sell a stock.
At www.stockmarketmentor.com.au I can teach you all about how to invest to create wealth for your future, whether it be for holidays, or long term goals like retirement.