Day trading is the act of buying and selling a financial instrument within the same day or even multiple times over the course of a day. Taking advantage of small price moves can be a lucrative game—if it is played correctly. But it can be a dangerous game for newbies or anyone who doesn't adhere to a well-thought-out strategy. What's more, not all brokers are suited for the high volume of trades made by day traders. Some brokers, however, are designed with the day trader in mind. You can check out our list of the best brokers for day trading to see which brokers best accommodate those who would like to day trade.
The stock exchange shoulders the responsibility of ensuring price transparency, liquidity, price discovery and fair dealings in such trading activities. As almost all major stock markets across the globe now operate electronically, the exchange maintains trading systems that efficiently manage the buy and sell orders from various market participants. They perform the price matching function to facilitate trade execution at a price fair to both buyers and sellers.

We hope that this beginner stock market investing guide sets you on a good path towards further research and learning, investment success and profits. It really is possible to be a successful investor if you want to be, but it will take time, effort, dedication and patience. If you can find those within yourself and treat investing as a journey that will take years, you can do it too.


Once you are familiar with the concepts above, and know that you can (and eventually will) be influenced, you need to do some research on what projects you want to invest into. There are to date 1400+ cryptocurrency projects listed on coinmarketcap, a website that tracks projects, market value etc. This is a good start to understand market capitalisation, price of the cryptocurrency unit in what we understand when we begin (fiat currency i.e. dollars or anything else), total amount of assets in circulation etc.
In terms of diversification, the greatest amount of difficulty in doing this will come from investments in stocks. As mentioned earlier, the costs of investing in a large number of stocks could be detrimental to the portfolio. With a $1,000 deposit, it is nearly impossible to have a well-diversified portfolio, so be aware that you may need to invest in one or two companies (at the most) to begin with. This will increase your risk.
When thinking about the mindset of investors, The Great Crash 1929 by J.K.Galbraith (reviewed here) should also be required reading. Typically, any sustained fall in prices - known as a bear market - is very destructive to wealth. However, as Galbraith explains wonderfully, each bear market is unique and is a reflection of the bull market that came before it. The book explains a great deal about the feedback loops that can exist when prices rise and fall as more people are either sucked into or forced out of holdings. It is the reference work about a very important slice of Wall Street history.

The stock market refers to the collection of markets and exchanges where regular activities of buying, selling, and issuance of shares of publicly-held companies take place. Such financial activities are conducted through institutionalized formal exchanges or over-the-counter (OTC) marketplaces which operate under a defined set of regulations. There can be multiple stock trading venues in a country or a region which allow transactions in stocks and other forms of securities.
This is an excellent learning experience and one that is vital to the long-term profitability of anyone in the stock market. To get the real experience, purchase some graph paper and chart the stock price movements each day by hand. Learn to compare this with the overall movements of the equity market or index and a whole new world of investment and money will begin to open up to you!
Should the company management and majority owners choose, they can pay one or more dividends per year to stockholders. The money for these dividends will typically come from profits earned within the business. In most countries, these dividends are subject to income tax payable by the receiver. Often there is a withholding tax taken at source to ensure that non-resident shareholders pay as well. 
Understand that for both beginning investors and seasoned stock market pros, it's impossible to always buy and sell the best stocks at exactly the right time. But also understand that you don't have to be right every time to make money. You just need to learn some basic rules for how to identify the best stocks to watch, the ideal time to buy them, and when to sell stocks to lock in your profits or quickly cut any losses.
As written in section Investing 3, you should never keep any valuable assets on an exchange, unless you engage in day trading. You should get an appropriate wallet to store your cryptocurrency safely. To explain the concept better, what you are storing is not the cryptocurrency itself, but your private keys, the keys that allow you to spend the cryptocurrency that is assigned to you and stored on the blockchain of the given cryptocurrency (of course each project has its own blockchain, just like each bank has its own internal banking system – to simplify heavily). Anyone who has access to your private key is in control of your cryptocurrency assets, so you must secure them. Most if not all of the wallets around have a feature called a backup phrase. It is a mnemonic sequence of words that must be written on paper and stored securely. If you lose access to your wallet, get it lost or stolen or whatever, this backup phrase should allow you to recover instantly access to your private keys and funds, after which you should immediately transfer them to a new address.
When you buy a stock, you should have a good reason for doing so and an expectation of what the price will do if the reason is valid. At the same time, you should establish the point at which you will liquidate your holdings, especially if your reason is proven invalid or if the stock doesn’t react as expected when your expectation has been met. In other words, have an exit strategy before you buy the security and execute that strategy unemotionally.

Brokers are either full-service or discount. Full-service brokers, as the name implies, give the full range of traditional brokerage services, including financial advice for retirement, healthcare and everything related to money. They usually only deal with higher-net-worth clients, and they can charge substantial fees, including a percent of your transactions, a percent of your assets they manage, and sometimes a yearly membership fee. It's common to see minimum account sizes of $25,000 and up at full-service brokerages. Still, traditional brokers justify their high fees by giving advice detailed to your needs.


Imagine owning stocks in five different companies, each of which you expect to continually grow profits. Unfortunately, circumstances change. At the end of the year, you might have two companies (A & B) that have performed well so their stocks are up 25% each. The stock of two other companies (C & D) in a different industry are up 10% each, while the fifth company’s (E) assets were liquidated to pay off a massive lawsuit.
The number of companies offering brokerage accounts has increased, including banks such as Ally Bank. Some brokerage companies provide a simplified version such as Robinhood where investors can buy and sell stocks, ETFs, options and cryptocurrency from a mobile app for free. Although Robinhood doesn't offer trade options for mutual funds or foreign stocks.
Based on a unique study of every market cycle since the 1880s, Investor's Business Daily's CAN SLIM Investing System gives you the tools to do just that. It identifies the seven common traits of winning stocks, and provides time-tested rules for how to buy stocks like Veeva Systems (VEEV), Nvidia (NVDA), Facebook (FB), Amazon.com (AMZN) or Apple (AAPL) as they begin to climb higher, when to sell to lock in your profits, and how to time the stock market.
Understand that for both beginning investors and seasoned stock market pros, it's impossible to always buy and sell the best stocks at exactly the right time. But also understand that you don't have to be right every time to make money. You just need to learn some basic rules for how to identify the best stocks to watch, the ideal time to buy them, and when to sell stocks to lock in your profits or quickly cut any losses.
The stock exchange shoulders the responsibility of ensuring price transparency, liquidity, price discovery and fair dealings in such trading activities. As almost all major stock markets across the globe now operate electronically, the exchange maintains trading systems that efficiently manage the buy and sell orders from various market participants. They perform the price matching function to facilitate trade execution at a price fair to both buyers and sellers.
A stock's market capitalization (cap) is the sum of the total shares outstanding multiplied by price. For example, if a company has 1 million outstanding shares priced at $50, its market cap would be $50 million. It has more meaning than the share price because it allows you to evaluate a company in the context of similar-sized companies in its industry. A small-cap company with a capitalization of $500 million shouldn't be compared to a large-cap company worth more than $10 billion. Here are how companies are generally grouped:
Many orders placed by investors and traders begin to execute as soon as the markets open in the morning, which contributes to price volatility. A seasoned player may be able to recognize patterns and pick appropriately to make profits. But for newbies, it may be better just to read the market without making any moves for the first 15 to 20 minutes. The middle hours are usually less volatile, and then movement begins to pick up again toward the closing bell. Though the rush hours offer opportunities, it’s safer for beginners to avoid them at first.
But building a diversified portfolio of individual stocks takes a lot of time, patience and research. The alternative is a mutual fund, the aforementioned ETF or an index fund. These hold a basket of investments, so you’re automatically diversified. An S&P 500 ETF, for example, would aim to mirror the performance of the S&P 500 by investing in the 500 companies in that index.
It is also worth trying to keep up to date with the latest thinking related to the area of investment that you are trying to specialise in. Therefore, if you plan to invest in defensive or income stocks, for example, it would be wise to read regularly about value investing and dividends. If you plan to invest in growth stocks, it would be wise to read about technology and the latest trends. Perhaps you could subscribe to one or more trade publications that relate to the sector(s) that you are most interested in.

Those exchanges allow the purchase of cryptocurrency either via a card payment, or via a wire transfer / SEPA deposit from your bank account. They will also require some sort of identification because they are bound by financial laws related to customer due diligence and AML (anti money laundering) legislation. You may be asked to provide identification information such as an ID card, a passport or a proof of address. Note that some sites have different thresholds to buy cryptocurrency or withdraw fiat currency to your bank account based on the level of identification info you have provided. If you are into this seriously, make sure to provide the info necessary to the level you want to reach in time, not at the last minute when you want to liquidate your positions (or said differently, when you want to cash out).

A stock's market capitalization (cap) is the sum of the total shares outstanding multiplied by price. For example, if a company has 1 million outstanding shares priced at $50, its market cap would be $50 million. It has more meaning than the share price because it allows you to evaluate a company in the context of similar-sized companies in its industry. A small-cap company with a capitalization of $500 million shouldn't be compared to a large-cap company worth more than $10 billion. Here are how companies are generally grouped:
Below is the list of online brokers doing business in the United States. Their names are ordered alphabetically. The table contains brokerage name, firms' website links, commissions on stock and ETF trades, and minimum amounts required to open a new brokerage account. There you could also find the discount stock trading companies ratings as well as links to detailed account reviews.
A market index tracks the performance of a group of stocks, which either represents the market as a whole or a specific sector of the market, like technology or retail companies. You’re likely to hear most about the S&P 500, the Nasdaq composite and the Dow Jones Industrial Average; they are often used as proxies for the performance of the overall market.

You may decide to invest ad-hoc or on a regular schedule basis. You may for example want to invest 40% of your allotted funds into mainstream, “secure” investments such as Bitcoin, Ethereum or Zcash. You may decide to spread out the remaining 60% to cryptocurrencies listed in the top 20 or top 30 projects based on capitalization on coinmarketcap, if you feel this is a secure strategy.
Secondly, this is a very vast topic and many people now trade and deal with cryptocurrency as their main day job. Startups and empires are built on it, so please understand this is a beginner’s guide and not the ultimate guide to the galaxy of cryptocurrencies. I will specifically limit myself to cryptocurrencies and will not cover ICOs (Initial Coin Offerings) as these are to me more investments into products or companies yet to be developed. This article will also not cover the relevancy or not of cryptocurrencies, it will not cover the famous Tulip Bubble, or any kind of philosophical concepts.
3. Get an education. Warren Buffett has suggested in the past that every investor should be able to understand basic accountancy principles, an annual report and stock market history. You probably do not need to become an accountant, but being able to understand the scoring system of the game can only help. There are thousands of books about investing and trading - you don't need to read them all, but you probably ought to read a few to enhance your theoretical knowledge.

It pays to shop around some before deciding on where you want to open an account, and to check out our broker reviews. We list minimum deposits at the top of each review. Some firms do not require minimum deposits. Others may often lower costs, like trading fees and account management fees, if you have a balance above a certain threshold. Still, others may give a certain number of commission-free trades for opening an account.


Every online brokerage firm on the list above has its strengths and weaknesses. It might be ideal for one customer and at the same time might not work for someone else. Before opening an account, there are a lot of parameters to consider besides commissions, well-known brokerage name, and pretty website. Some of the most important of these parameters are surcharges and fees; friendliness to client's knowledge level (perhaps one is a beginner? or needs a professional-level trading platform?); availability of investment products a client wants to buy (for example forex, futures, or NTF mutual funds) as well as availability of online community, virtual trading, and discounts. We suggest to investors to take a time to read brokerage reviews, and see for themselves if a particular firm is the right fit.
Buy in thirds: Like dollar-cost averaging, “buying in thirds” helps you avoid the morale-crushing experience of bumpy results right out of the gate. Divide the amount you want to invest by three and then, as the name implies, pick three separate points to buy shares. These can be at regular intervals (e.g., monthly or quarterly) or based on performance or company events. For example, you might buy shares before a product is released and put the next third of your money into play if it’s a hit — or divert the remaining money elsewhere if it’s not.
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