Going back to basics. Questions like where do you start making trades? What is a stock? In this podcast, Phil and Danielle discuss the tools you’ll use for your first trade and the type of investment brokerage account options for the new and seasoned investor alike.
In Episode 14 You Will Learn
- How to make trades when you don’t have much money to start.
- How to invest with almost no downside.
- What are Angel Investors?
- What is a stock?
- How an Initial Public Offering (IPO) works.
- How to buy and sell a stock.
- What is a brokerage account?
- Brokerage accounts for the new investor.
- Paper trading websites.
- What is a market order and a limit order?
- Angel Investor
- Interactive Brokers
- TD Ameritrade
- Flash Boys
- Stock Symbols
- Market Order
- Limit Order
What is an “Angel Investor?”
“Angel Investors” are typically friends and family of the people starting the business. They give money so a person can start their business.
For example, if you started a lemonade stand as a kid, you would need some money for supplies but you don’t have any capital to start with, you need to borrow from Mom and Dad and they become investors.
What is an IPO?
When a company is growing constantly and has a record of years of success and growth that just needs more capital and cash to put to work can register an initial public offering.
This is called taking the company public.
The company will register their company with the SEC. The SEC regulates companies, brokers and selling of the stock to be listed on an exchange.
Large investment banks will then determine if they like the company and decide to take the company public.
How to Open a Brokerage Account and Make Your First Trade
- Research the top 4 websites and see which one is right for you to trade with.
- Call them and see how the customer service is for you. Using the internet is easy once you’ve done it a couple of times, but the first time can be a little confusing.
- TD Ameritrade has great tools and analyst reports. You can also open a TD Ameritrade account with no money and have full access to their tools.
- START HERE: TD Ameritrade has “Paper Money” they give you a fictional $200,000 to play with and trade with fantasy money.