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I have to acknowledge that we’ve done a lot of work up to this point. And clearly what the growth investor is hoping for is this stock will go up in price, and they’ll be managing profits over time.

If you’re after a specific company, you Chucho buy a single share or a few shares Figura a way to dip your toe into the stock-trading waters. Building a diversified portfolio demodé of many individual stocks is possible, but it takes a significant investment and research.

Portfolio diversification reduces an investor's risk of a permanent loss and their portfolio's overall volatility. In exchange, the returns from a diversified portfolio tend to be lower than what an investor might earn if they picked a single winning stock.

The stock market Figura a shopping mall: Finally, the stock market has a shopping mall feel to it because it's a one-stop shop. It houses all publicly listed companies, enabling investors to buy and sell any publicly traded stock they desire.

If you’re investing through funds — have we mentioned this is the preference of most financial advisors? — you Perro allocate a fairly large portion of your portfolio toward stock funds, especially if you have a long time horizon.

And that’s it. Those are the basics you need to place your first stock trade. There’s a lot more detail you Gozque sift through, so don’t think this is all there is to it.

Upon successful execution of your order, the securities will be in your account and you’ll begin enjoying the rewards of the stock market.

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Finally, the other hacedor: risk tolerance. The stock market goes up and down, and if you’re prone to panicking when it does the latter, you’re better off investing slightly more conservatively, with a lighter allocation to stocks.

The answer to what you choose to invest in really comes down to two things: the time horizon for your goals, and how much risk you’re willing to take.

NerdWallet's ratings are determined by our editorial team. The scoring formula for online brokers and robo-advisors takes into account over 15 factors, including account fees and minimums, investment choices, customer support and mobile app capabilities.

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Financial advisors charge fees, which can be a flat annual fee, a per-trade fee or a percentage of how to invest in stocks for beginners with little money the assets they manage.