How to Take the First Step in the Stock Market?

Posted by Grace under Investing on December 26, 2015

There are many people who are interested to invest in the stock market. They are familiar with the benefits they can get if they invest their money in stocks. However, they don’t know the step by step procedure. That’s why, an interesting reader of Return On Investment blog ( asked;

“What is the first step in investing in stocks. I know is’s great to become a stockholder to my favorite company. Can you guide me on how to take the first step in the stock market?”


Gerald from Iowa, USA (December 19, 2015).

How to Take the First Step in the Stock Market?

You need to know if the stock market is really for you. You have to determine or analyze your risk tolerance. For your information, investing in stocks is risky. But, you don’t have to be afraid to it.

For me, the first step to take when anyone wants to invest money in the stock market is “getting educated”. You have to start educating yourself. Don’t be in a hurry but don’t procrastinate. I know many people who are just interested after they heard “how easy it is to invest in stocks”. But after few weeks, they didn’t get started. They are not well motivated, simply because, they don’t know how to take “procedures”.

First Step: Invest in Education

There are many ways you can learn about stock market. Take time to read blogs like, read business and finance magazines and attend investing seminars.

I have a several guide on how to start investing in stocks. And those articles can give Gerald the best answers. (As if he already familiar how does the stock market works).

First Step to Stock Market

CC by Alex Proimos via Flickr – Wall Street Sign

First Step in the Stock Market Investing

You need to take the first step; opening a stock brokerage account. A stock brokerage account is very important. It allows you to buy and sell stocks. How can you open a stock brokerage account? You can open one via online. But, you need to pass important documents and forms. Once your application is approved, fund your account and start buying stocks.

You have to search the best stock brokerage account in your country. Choose one. Find out how can you ope an account. Mostly, a stock brokerage firms will ask you to download application forms in their official websites, Fill out the forms. Submit to the office address together with other important documents. If you want to open a stock brokerage account in a specific company, go to its official website and read procedures.

As a conclusion, the first step to take when investing in the stock market is “knowing”. The second and other steps should be applying what you have learned. Otherwise, you are like other people who only interested to invest after few days and they will never become interested again.

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