How To Buy Shares [Complete Guide]

May 10, 2020January 16, 2023 Shyam Kumar 0 Comments

We have come up with a Full Complete guide on How to Buy Shares (Stocks) of Company [4 Steps].

Rule No. 1: Never lose money. Rule No. 2: Never forget rule No. 1.
Warren Buffet

Online Broker Platform is used by many investors to buy shares online, while some companies also allow the investors to buy their company stock directly. In the same, you too can buy shares using an Online Broker Platform.

When anyone buys shares of any particular company, that person hold the part-ownership (% of the shares owned by that person) of that company.

Follow the Below Step-by-Step Guide on How to Buy Shares (Stocks) of Company:-

1. Open Your Online Brokerage Account

Buy a stock the way you would buy a house. Understand and like it such that you’d be content to own it in the absence of any market.
Warren Buffet

One of the easiest ways to buy shares is through an online stock broker platform. You can open your online brokerage account in a few simple steps and its process is almost similar to opening a bank account which requires your proof of identification and after completing every formality you should select the type of account you want to open.

2. Choose the Preferred Stocks

Buy into a company because you want to own it, not because you want the stock to go up.” He’s done pretty well for himself by following that rule.
Warren Buffett

Once you are done with setting up your online brokerage account and funded it, now is the time to choose the preferred stocks.

So you must be wondering which stock should I choose?

What I prefer is that you should start with the company that you are well aware of and dig more into it by doing research. Look for those companies that you have faith in and really wanted to be a part of during their growth.

Go to your broker’s website, as you would find most of the financial and growth data (including company info, news, earning data, annual report, and much more) of the company there itself. It may be possible that you will get a full guide on how to use their platform for stock trading.

3. Decide Number of Shares to Buy

It’s far better to buy a wonderful company at a fair price, than a fair company at a wonderful price.
Warren Buffet

After choosing the prefferd company for buying stocks, now you should work on deciding on how many shares you want to buy.

I’ll prefer you to start with a small number of shares and once you start getting the feeling that you have the chance of generating fortune out of it with minimal loss (in case it happens), then add more shares into your portfolio.

4. Work on your Stock Portfolio

Risk comes from not knowing what you are doing.
Warren Buffet

Make sure you step into those portfolios of the company on which you have gained sufficient knowledge to higher the chance of success on your investment.

Not to worry much if the outcomes came opposite to what you expected, even great leaders (including Warren Buffet) in this field made a lot of mistakes before becoming a pro-investor.