Q&A for How to Trade Stocks

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  • Question
    Can I clear the profit off a share without selling the whole stock?
    Donagan
    Top Answerer
    You can sell some of the shares of a stock you own. You don't have to sell all of your shares of that stock.
  • Question
    Where can I find a professional trader to trade for me?
    Donagan
    Top Answerer
    There are many, many brokers available. Find them online (search for "discount brokers") or in your phone directory ("stock and bond brokers").
  • Question
    I'm a Bolivian citizen that lives in Bolivia. Can I trade in the US stock market through a trading website?
    Donagan
    Top Answerer
    Check first with one or more Bolivian brokers to see if they can give you access to U.S. markets. If not, some online brokers do work with non-U.S. traders but require certain procedures for qualification. Contact any online brokerage to learn their rules.
  • Question
    It is necessary or required to have a credit card in applying for online trade?
    Donagan
    Top Answerer
    No. Brokers don't care about your credit cards. They expect you to open and maintain your account with cash.
  • Question
    What is the meaning of annual stock trades?
    Community Answer
    Stocks that should be considered for trading for short term rather than long term.
  • Question
    How do I begin trading with fake money?
    Donagan
    Top Answerer
    Many brokers will let you open a demo account prior to beginning real trades.
  • Question
    What are ask and bid prices?
    Donagan
    Top Answerer
    An "ask price" is the lowest per-share price currently being offered by sellers of a given stock. A "bid price" is the highest per-share price currently being offered by potential buyers of a given stock.
  • Question
    How much money do I need to start trading?
    Donagan
    Top Answerer
    Each brokerage has its own minimum deposit requirement. Some online brokers will let you start with no deposit at all (other than whatever you want to use to make your first purchase). Several websites (NerdWallet is one) offer charts comparing features and requirements of online brokers.
  • Question
    How do I know that I'm not conned or the legitimacy of those who call and try to recruit me for forex?
    Donagan
    Top Answerer
    Do not do business with anyone who tries to "recruit" you. They have no interest in your well-being.
  • Question
    How long would it take for a stock to make profit, if I invested for a short term?
    Donagan
    Top Answerer
    No one knows. It could take one day. It could take 20 years. It will probably take somewhere in between those two times.
  • Question
    What is the difference between stocks and forex trade?
    Donagan
    Top Answerer
    Trading stock is buying and selling shares of ownership in various businesses. Forex trading is buying and selling some national currency (money) using another national currency (for example, buying and later selling Japanese yen using Russian rubles).
  • Question
    Do I need to register the stock trading just like a normal business?
    Donagan
    Top Answerer
    If you are trading for only yourself, you do not need to register as a business. If you are trading with other people's money, you do (unless it's an informal arrangement you have with family or friends).
  • Question
    If I'm buying one share of company stock at $35.41/share, is this what the brokerage firm will charge me, plus fees?
    Donagan
    Top Answerer
    Yes. You'll pay $35.41 plus whatever per-trade fee the broker charges. If you're buying stock issued by the company that employs you, it's possible your employer can negotiate a lower-than-usual fee from the broker.
  • Question
    What is a reverse split?
    Donagan
    Top Answerer
    It could be considered a "merging" of outstanding shares. For one reason or another, a company may decide to reduce the number of its outstanding shares of stock while simultaneously (and proportionally) increasing the price of those shares.
  • Question
    How is self-trading done?
    Donagan
    Top Answerer
  • Question
    How can I store money in a brokerage firm?
    Donagan
    Top Answerer
    Simply deposit money into your trading account, and let it sit unused. Your broker may or may not pay interest on your idle funds.
  • Question
    Do I need a licence or permit to buy or sell for myself?
    Donagan
    Top Answerer
    No. All you need is access to the market by way of a trading account at an online or local brokerage. You can also buy and sell a specific company's stock through that company's direct stock purchase plan.
  • Question
    Can I trade one stock to another?
    Donagan
    Top Answerer
    No. "Trading" stock means either buying shares or selling them. It's certainly possible to enter into a private agreement with another stockholder by which you exchange some of your shares for some of the other person's shares based on the respective values of each. You would not involve a stockbroker in such an exchange.
  • Question
    Which sector is the best for invest in stock market?
    Donagan
    Top Answerer
    That is one of the great imponderables of the investing world. Seek advice from financially savvy people. (In the meantime, the financial sector is usually -- but not always -- pretty reliable.)
  • Question
    I have shares that have done very little in 15 years, can I ask a broker to trade them based on his advice?
    Donagan
    Top Answerer
    Yes, if it's a full-service broker. A discount broker might not have any advice to share with you.
  • Question
    Do you need a computer to trade?
    Donagan
    Top Answerer
    No. If you don't want to trade online, you can contact your broker by phone to order a trade.
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