Getting Started with Stock Investing | How to Buy Stocks with 0 Commissions

Cryptocurrency investing is a new investment in Stocks, but don't know how to take the first step?

This introductory stock investing tutorial will take you step-by-step through basic investing knowledge about what stocks are, what are the types of stocks, and more, and strategies for starting stocks for beginners.

Stocks are a must to learn investment knowledge. For beginners to invest in stocks, this is the definition!

Directory:

The first step in to stocks: What are stocks?

Step Two in Stocks: What's the Value of Investing in Stocks?

Step 3: Where to Buy Stocks?

Getting Started with Stocks Step 4: What do you think about stocks?

Step 5: What are the types of stocks?

Getting Started with Stocks Step 6: A Beginner Stock Investment Strategy for Beginners

Stocks Vocabulary Bags

The first step in to stocks: What are stocks?

Stocks (Stock)

Stocks are certificates issued by companies to investors at the time of pooling capital. When an investor buys Shares in a company, the representative who owns a part of the company becomes a Shareholder of the company. For example, when you invest (Buy Stock in Apple) (Stock Code: AAPL*), you become a Shareholder of the Apple company.

* Any securities displayed herein are for illustrative purposes only and do not constitute any investment advice or guarantee.

Share

Shares are units of ownership of the company. For example, if you own 150 shares of Apple stock, that means you own 150 units of Apple.

Equity

Shareholders' Equity is the size of the proportion of shares held by a shareholder in a company. For example, Apple's current stock is about 15 trillion, if you own 150 shares of Apple stock, that is equivalent to 15/15 billion = 0.1/0.1 trillion in Apple shares.

Let us explain these three Concepts with a practical example:

If you intend to invest in Apple, Buy 150 shares of AAPL, then you become an Apple Shareholder and own a small share of Apple shares, these 150 shares are shares in your hands.

Step Two in Stocks: What's the Value of Investing in Stocks?

After learning the Basic Concept of Stock Investment, followed by the introduction of the big ones, the bottom line is how valuable it is to invest in stocks.

Let's illustrate again with a simple example:

If you set up an apple tree, you have no money, and people are willing to invest in you, so we will become Shareholders of this tree.

In the future, Apple proceeds will be distributed to each Shareholder as an investment return report.

For an apple tree, the return on investment comes mainly from two aspects: one is the growth of the fruit tree and the other is the fruit that is harvested.

In the same way, the benefits of investing in stocks come in two ways: a difference in the price of stocks that increase in stock prices is higher than that of apple trees, and that of apples produced together.

Stocks Spread

The main way to make money on investing stocks comes from rising stock prices, that is, buying when stock prices are low, selling when stock prices are high, earning stock spreads.

However, falling stocks can be liquidated (Blank Stocks), selling into stocks immediately. Stocks can be bought back to a lower price after a fall in price. This method is more advanced, the risk of investment is higher, and it is not suitable for investors who are interested in Stocks, we will not discuss in detail here.

Dividend

The return on Investment Stocks is derived from the dividends that the Company presents to the Shareholder. There are two main types of distribution of shares: Cash Dividends and Shares Dividends.

Cash dividends are distributed to Shareholders in the form of dividends. For example, if a company announces a dividend of $1 per share, if you own 1000 shares of company stock, you will receive an investment income of $1000.

A stock dividend refers to a company's return to shareholders by allocating shares and allocating new shares to shareholders in accordance with the shareholding ratio. For example, if a company decides to issue a 1:10 dividend, and you invest 1000 shares of that company's stock, then after the distribution, your holding becomes 1100 shares.

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* Any securities shown are for illustrative purposes only and do not constitute any investment advice or guarantee.

Step 3: Where to Buy Stocks?

Knowing the basics of getting started with stocks, you must be wondering how to invest (buy and sell) stocks?

Before investing (buying and selling) stocks, you first need to open a securities (stocks) account. Just like depositing money in a bank, you need to open a bank account first.

Securities (Stock) Account Opening Process

Step 1: Head over to the Futubull network and sign up for a new account.(Register now)

Step 2: Open a Securities Account in a Futu Account(Open an account now)

Step 3: Fill in your personal and financial details (includingBank Code and Account Number), and then deposit funds via EdDA Quick Deposit, Fast Transfer (FPS), Bank Transfer.(Instant Deposit)

Step 4: Download the Futubull App and log in.(Download now)

Getting Started with Stocks Step 4: What do you think about stocks?

Beginners who are just starting to invest in stocks open an investment APP and are easily distracted by complex and changing information in real time, do not know where to start?

Here's what to see in Investing Stocks now:

• List of actions

When we open the stock action list, we can see information about the stock name, the stock code, the latest stock price, and the rise and fall.

For example, NVIDIA in the following chart, Stocks Code NVDA, was recently priced at 469.500, down +0.81%.

Tencent's share code is 00700 with a recent price of 302.600, with a rise of -1.37%.

Tips: The stock code for Hong Kong stocks is a digit starting with 0, and the stock code for US stocks is the English abbreviation of the company.

>> The design images displayed on the screen are for illustrative purposes only and do not constitute any investment advice or guarantee.

• Detailed Quote

After clicking on the stock quote page of a stock, first of all, we can see the summary fields of the stock, such as the highest price, lowest price, today's opening price, and yesterday's closing price.

>> The design images displayed on the screen are for illustrative purposes only and do not constitute any investment advice or guarantee.

It is necessary to understand the changes in the price of Stocks over time, to reflect the highs, the lows, the opening of the market today and the loss of the market in a complex way. In addition, it is possible to record this information in a symbolic way using the lens.

So, in order to understand the price trend of Stocks, we first need to figure out what a window is composed of:

Yinyang candles consist of three basic elements: solids (candlesticks), shadows, and colors.

For daily charts, physical markers indicate market prices and close prices, shadows indicate highs and lows, and colors reflect the direction of stock price movements.

IF CLOSING PRICE > OPENING PRICE, IT IS USUALLY MARKED IN GREEN, INDICATING THAT IT IS A SOLAR CANDLE.

Conversely, if the closing price < the opening price, it is usually marked in red, indicating that it is a candle.

• Trading Hours

Before we start investing in stocks, we also need to understand the rules of trading stocks.

• Hong Kong Stock Trading Hours

The trading hours of Hong Kong stocks are mainly divided into three phases (Hong Kong time):

• US Stock Trading Hours

Trading hours for US stocks and Hong Kong stocks differ and are mainly divided into three phases (US Eastern Time):

Outside, for some US Stocks, Futu again supports overnight trading, corresponding to 8:00pm-4:00am Eastern Time.

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Please note that US Stocks use Summer Time and Winter Time, and the corresponding Hong Kong time is different. Here is a summary of the Continuous Trading Hours in the chart:

US Summer Time (March-Nov) corresponds to Hong Kong time 9:30pm- 4:00am

Mid-winter time (November - March of the following year) corresponds to Hong Kong time 10:30pm- 5:00am

Extended Reading:Is it easier to get started with Hong Kong stocks compared to US stocks and more opportunities to make money?

Step 5: What are the types of stocks?

Stocks in the US and Hong Kong stock markets, stocks large and small add up in the millions, and each company has its own characteristics and advantages. Yes, it is not possible to receive the passport in full. This is why we will introduce you to the two main ways of investing in stocks to help beginners understand the types of stocks they want to invest in while understanding the Market Overview.

Market Cap by Stocks

Stocks can be divided into large stocks, medium stocks, and small stocks according to the company's market capitalization.

Among others, Market Cap's Market Value = Calculation of Market Cap = Stock Stocks Price x Shares (Price of Direct Company Issue x Shares (Number of Stock Stocks Issued by the Company)

For example, Tesla*'s shares are valued at 219.96, the shares are 3.174 billion, and the market cap value of the shares received is 698.2 billion.

* Any securities displayed herein are for illustrative purposes only and do not constitute any investment advice or guarantee.

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Classified by stock characteristics

Stocks, on the other hand, can be divided into Long Stocks, Value Stocks, and Receipt Stocks, depending on the characteristics of the company.

1.Growth Stocks: Relating to fast-growing companies. Stocks of these types of companies have higher growth momentum, which will reduce the distribution of dividends by using the future currency for research. Investors can benefit from the subsequent growth in the value of the company.

2.Valuation Stocks: Companies that are usually rated at low market valuations may not show growth at the moment, but operating conditions are good and the share price is currently undervalued. Suitable for investors who want to Buy Stock Stocks at a convenient time for stock prices.

3.Receipt Stocks: Firms with fixed messages. Stocks may not be as volatile as these companies develop at a mature stage. Stocks may not fluctuate as much as possible, but they will be able to distribute dividends steadily. Investors who want to invest in Stocks with a low risk preference.

Extended Reading:Explosive Potential Stocks Are Yields Steady Yields? I've got a haircut for you!

Getting Started with Stocks Step 6: A Beginner Stock Investment Strategy for Beginners

Before you start investing properly and buying and selling stocks, it is important to take a football lesson and find a stock door investment strategy that suits you.

>> All third-party logos, brands or trademarks shown in this article are for identification purposes only and remain the property of their respective owners.

First, we need to understand our own stock investment styles and investment preferences and determine what kind of stock investor we are:

Active investors

Active stock investors are more risk-averse and pursue high risk, high returns, and want investment returns to outperform the market, and are suitable for active investment strategies.

Resilient investors

Resilient Stocks investors, with part-time risk and ROI, can accept planned investment risks and seek ROIs that are no different from the big markets. It can be considered to combine active investment and passive investment strategies.

CONSERVATIVE INVESTORS

Hedge Stocks Investors tend to invest in low-risk investments and do not need to report too much, and consider the value added value of Assets. Compare to agile investment strategy.

Then we can find the right Stocks entry strategy.

We can use passive investing methods to bring fair reporting to the Stocks market, and otherwise, we can use active investing to overreport our own investments.

In fact, we can get answers from the investment philosophies of three stock investing masters—Warren Buffett, Willian Gann, and Jack Bogle.

Everyone is no stranger to their style of investing in stocks: they are the most typical representatives of value investing, technical analysis and passive investing, respectively.

Active Investing

Active investing is suitable for active stock investors. Simply put, this way of investing in stocks requires you to do your homework by “picking” and “when to pick” to decide what stocks to invest in, when to buy stocks and sell stocks. Hoping to win the big market and get a return on investment that beats the big market performance.

• Value Investing

Buffett shares are the epitome of value investing. In general, we can analyze a Stocks that are not worth investing by Value Investing.

Value Investing is buying good stocks at a reasonable price and developing a quality company, and then valuing the company's shares, investing at a time when the value of the shares is decreasing.

How do you get to know a company from finding the best stocks you want to invest in? What is the Price Valuation of Stocks in this Company? Is it Undervalued Now?

In general, we can use indicators such as NAV ROE, PE, and market net market PB to help us discover quality company stocks and determine whether the investment will be expensive now.

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For more detailed and advanced Stocks investing techniques, please read:Stocks Entrance to Progress: Build Your Long-Term Investment System (AUDITION PACK)

• Technical analysis

And value investing is different, technical analysis determines that any news in the stock market will be reflected in the share price, and history will repeat itself with no new news under the sun.

Therefore, it is possible to predict the unlikely direction by analyzing the past performance of the Stock Price.

Generally, we can use technical analysis to determine that Stocks are currently unsuitable for investment.

Technical analysis is more like analysing the horizon, for example, as we might hear, that AAPL* stocks are formed by the favorable angle of the head, and the stocks of TSLA* are formed by the favorable graph pattern of the head.

* Any securities displayed herein are for illustrative purposes only and do not constitute any investment advice or guarantee.

At the same time, we have the most common Technical Indicators, such as MA, MACD, when looking at the price of stocks moving forward.

Extended Reading:Investment Stocks Entrance: Technical Indicators Are Overused, 90% of People Misused?

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Passive Investing

The “father of index funds” John Berg thinks that it is too difficult to beat the market and we can get average returns by investing in the entire market.

To put it simply, dynamic investing is an extremely friendly investment option for most Stocks investors, as are stable investors. We don't need to spend a lot of time researching company stocks, or analyzing complex stock price movements. There are few investment returns that differ significantly from major market performance while not taking into account high investment risks.

The most common ways to invest passively are Stock Index Funds and Stock ETFs (Exchange Traded Fund Funds).

For example, we often listen to Nasdaq, S&P 500 Index, Dow Jones Industrial Average, which are indicators that track the movements of the entire US stock market. We cannot directly invest in Stocks indices, but we can invest in ETFs to obtain investment returns that differ little across the market.

Extended Reading:Getting Started with Investing in US Stocks: Reading the Four US Stock Indices

Investment Risk Management

However, we also need to note that no matter which investment strategy is adopted, you must learn to diversify investment risks.

Because a rise in the price of stocks is not accurate, just by using a company that benefits, the price of stocks will fluctuate.

Since investment risk cannot be completely avoided, is there any way that can help us diversify our investment risk, reduce investment risk, and thus improve our investment performance?

Speaking of which, without having all our eggs in one basket, we can spread our funds to invest in multiple Stocks, and across different asset classes, to reduce uncertainty.

Extended Reading:How to reduce investment risk?

Take a look at the conclusion of the Stocks Investment Gateway. If you want to learn more advanced stock investing knowledge, please come to Futubull and create your own long-term investment system!

Stocks Vocabulary Bags

Bull market

Stocks market trends show a solid increase, and stock market sentiment is called a bull market.

Bear City

Stocks Market Trends Show Solid Declines, and Stock Market Sentiments Are Called Bumps.

Yokura

Investors are Bullish about the stock market and expect a better price to buy stocks at low prices and sell them at a certain price point before they rise to a certain price point to gain a difference.

Amakura

Investors are wary of the stock market, expecting that the stock price will fall, so sell stocks when they are high and buy them if the stock drops to a certain price to get the spread.

Advantage

Sizzling Stock Price Increase, Reasons and News for Profiting Stocks.

Lai Tam

Reasons and information that causes stocks to fall in price, reasons and news for stocks to fall.

Opening of the store

Start with a single investment, you can Buy or Sell a certain number of Stocks.

Empirical storage

Closing an investment can be buy after sell, or buy a certain number of stocks after selling.

Hold Positions

Stocks that own a certain number.

Support Position

Resistance refers to a stock price that may be supported when a stock price falls, from a stock price that has stopped falling.

Resistance level

Resistance is a sign of a stock price that may come under pressure during a rise in the price of a stock, from a reversal of a fall.

Eagle Pies

Support tightening of the MMF policy to control trade flows.

Pigeon Breed

Support a broadening of the MMF policy to promote economic development.

chasm

Stocks began to fluctuate widely, indicating strong earnings or weak earnings signals.

exceeded

Stocks indicate the Resistance or Pressure Level of a certain key after the price has been adjusted.

trimmings

Stocks indicate that after a period of time, the price of stocks enters a steady phase of movement and begins to fluctuate slightly.