What Kind of Reality Check Do I Need Quiz
Q&A for How to Trade Stocks
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QuestionCan I clear the profit off a share without selling the whole stock?DonaganTop AnswererYou can sell some of the shares of a stock you own. You don't have to sell all of your shares of that stock.
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QuestionWhere can I find a professional trader to trade for me?DonaganTop AnswererThere are many, many brokers available. Find them online (search for "discount brokers") or in your phone directory ("stock and bond brokers").
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QuestionI'm a Bolivian citizen that lives in Bolivia. Can I trade in the US stock market through a trading website?DonaganTop AnswererCheck 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.
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QuestionIt is necessary or required to have a credit card in applying for online trade?DonaganTop AnswererNo. Brokers don't care about your credit cards. They expect you to open and maintain your account with cash.
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QuestionWhat is the meaning of annual stock trades?Community AnswerStocks that should be considered for trading for short term rather than long term.
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QuestionHow do I begin trading with fake money?DonaganTop AnswererMany brokers will let you open a demo account prior to beginning real trades.
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QuestionWhat are ask and bid prices?DonaganTop AnswererAn "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.
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QuestionHow much money do I need to start trading?DonaganTop AnswererEach 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.
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QuestionHow do I know that I'm not conned or the legitimacy of those who call and try to recruit me for forex?DonaganTop AnswererDo not do business with anyone who tries to "recruit" you. They have no interest in your well-being.
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QuestionHow long would it take for a stock to make profit, if I invested for a short term?DonaganTop AnswererNo one knows. It could take one day. It could take 20 years. It will probably take somewhere in between those two times.
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QuestionWhat is the difference between stocks and forex trade?DonaganTop AnswererTrading 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).
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QuestionDo I need to register the stock trading just like a normal business?DonaganTop AnswererIf 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).
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QuestionIf I'm buying one share of company stock at $35.41/share, is this what the brokerage firm will charge me, plus fees?DonaganTop AnswererYes. 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.
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QuestionWhat is a reverse split?DonaganTop AnswererIt 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.
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QuestionHow is self-trading done?DonaganTop Answerer
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QuestionHow can I store money in a brokerage firm?DonaganTop AnswererSimply deposit money into your trading account, and let it sit unused. Your broker may or may not pay interest on your idle funds.
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QuestionDo I need a licence or permit to buy or sell for myself?DonaganTop AnswererNo. 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.
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QuestionCan I trade one stock to another?DonaganTop AnswererNo. "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.
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QuestionWhich sector is the best for invest in stock market?DonaganTop AnswererThat 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.)
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QuestionI have shares that have done very little in 15 years, can I ask a broker to trade them based on his advice?DonaganTop AnswererYes, if it's a full-service broker. A discount broker might not have any advice to share with you.
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QuestionDo you need a computer to trade?DonaganTop AnswererNo. If you don't want to trade online, you can contact your broker by phone to order a trade.
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