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How to Buy Stocks

Our lessons on how to buy stocks teach you position sizing, how many stocks to buy, and how to limit risk. We share important tips on how to execute a stock trade, how to track your stock list, and how to manage your mindset.

How Long Should You Hold A Stock? Research & Facts

The best rewards on a stock are typically with a hold time of between 50 to 300 days.  It takes time for good profits to develop, and they certainly do not happen overnight unless you are fortunate.

The Best Month to Buy Stocks – 53 Years of Analysis

The best time to buy stocks is in October, and the best time to sell stocks is in July, according to our research using 53 years of stock market data.

Stock & Share Prices: Open, Close Bid, Ask & Spread Explained

The terms "stock price" and "share price" are used interchangeably in finance. However, pricing equities involves a wealth of additional terms, including the open, high, low, close, ask, bid, and spread.

Stock Leverage: The Risk & Rewards of Margin Accounts

Using stock leverage, which involves trading stocks with a margin account, leveraged ETFs, or stock options, can be a double-edged sword. It has the potential to magnify both your gains and losses.

What Are Points in Stocks, Bonds, Futures & Forex?

A one-point move in a stock price equals a one-dollar change. When someone says a stock is down two points, its price has declined by two dollars. Points in a stock index are similar to points in a stock, but instead of referring to the actual stock price, they refer to an index's performance.

Average Up & Average Down in Stocks Explained

To average up and down in stocks, buy more shares at a lower price when the stock price drops (averaging down) or fewer shares at higher prices when it rises (averaging up). This technique capitalizes on market movements with limited risk by lowering the cost basis and potentially increasing returns over time.

Can You Owe Money on Stocks?

Yes, you can owe money on stocks if you buy stocks through a margin account. A margin account allows you to borrow money from your broker to buy more stocks than you could with just the cash in your account. If your trade moves against you, you could end up owing money.

Can You Buy and Sell Stock on the Same Day?

Yes, you can buy and sell the same stock on the same day four times weekly in the USA. If you day trade more often, you must follow the FINRA rules on Pattern Day Trading (PDT), which means being a registered day trader and having a $25K minimum account balance.

How To Buy Stocks Online Without A Broker

You can buy stocks online without a broker using a transfer agent, a direct purchase plan, a dividend reinvestment plan, or your company's stock purchase plan. Alternatively, you can use a commission-free brokerage.

How old do you have to be to buy stocks?

Individuals need to be 18 years old to trade stocks. However, parents can open a custodial account with a brokerage for a minor and...

Dollar Cost Averaging (DCA): Examples & Strategies

Dollar cost averaging is an investment strategy that divides the total investment amount across periodic purchases, reducing risks from lump-sum investments and capitalizing on market price variations.

Track Your Trades With Our Free Excel Stock Tracker

Our Excel stock tracker tool is an easy way to manage your investments. With our Excel stock tracker, you can keep track of portfolio performance, analyze financial data, and more.

Sell In May And Go Away! Is It True? Debunking the...

Our 60 years of research shows that the stock market maxim "Sell in May and go away" is misleading and detrimental to your investing performance. The 60-year average return of June, July, and August outweigh any losses incurred during bad years.

Common vs. Preferred Stock: Strategy Differences & Examples

Common stock has voting rights and price appreciation in line with market prices, whereas preferred stock does not. However, preferred stock has higher priority dividend payments and liquidity rights in case of insolvency. The downside of preferred stock is that it has no voting rights, and they are callable.

Margin Trading Explained & The Realities Researched.

Our research shows overconfidence is the biggest reason traders lose with margin trading. Trading on margin trading involves borrowing money from a broker to purchase stock, allowing traders to buy more stocks, amplifying potential gains or losses.

How Many Stocks Should I Own? What the Academic Research Says

According to four academic research papers, you should own at least 10 stocks to achieve 90% diversification. If you own 20 to 30 stocks, your portfolio will perform better than average.

Portfolio Diversification: The Art of Doing It Right!

Portfolio diversification is a crucial aspect of sound investment management. By properly implementing this strategy, investors can balance risk and reward, ultimately positioning themselves for long-term financial success.

Our Best Training & Strategies

Liberated Stock Trader Pro: Learn Stock Market Investing

Learn stock market investing with the complete online stock trading course by Barry D. Moore, a certified financial analyst from the International Federation of Technical Analysts (IFTA).

ETF Investing Strategy: MOSES Improves Performance & Lowers Risk

The MOSES ETF investing strategy is a powerful suite of indicators meticulously backtested over 100 years. Designed to empower you to outperform the market, it equips you with the tools to navigate major stock market crashes and unlock greater investing performance.

Our Strategy Beat the Stock Market’s S&P 500 By 102% In...

Decades of research and testing unveiled the Liberated Stock Trader Beat the Market System. Our 9-year, backtested, and proven strategy targets 35 financially healthy high-growth stocks, producing a track record of beating the S&P 500 by 102%.