But how and why would you trade stock? Use the information and resources below to learn the trading fundamentals on how to invest in stocks. If you have questions along the way, contact a specialist for help. A stock is like a small part of a company.

Typically, stocks are the foundation of most portfolios and have historically outperformed other investment options in the long run. There are many ways you can participate in the stock market, but you can break down into two fundamental approaches: The buy and hold approach is for those investors more comfortable with taking a long-term approach. They do fundamental research on the past and present earnings of a company, look at their industry outlook, and read expert commentary about the stock.

The goal is to find and invest in quality stocks that are going to provide a return or dividend for the long haul. Therefore the buy and hold investor is less concerned about day-to-day price movement. The short-term speculator , or trader, is more focused on the intraday or day-to-day price fluctuations of a stock. They often take a more technical approach, looking at charts and statistics that may provide some insight on the direction the stock may be heading.

The goal is to buy low and sell high for a profit quickly. This strategy is used when a trader thinks a stock will decline in price, allowing them to profit from a down market. Shorting a position can lead to theoretical unlimited risk if the security rises in market value.

These two general approaches are just a basic sampling of how stocks can be used as either a long-term investment, or a short-term speculative tool. How you decide to invest and trade in stock should depend squarely on your goals and risk tolerance. Some things to consider before investing in and trading stocks:. Stocks are one of the most heavily-traded markets in the world, with numerous physical and electronic exchanges designed to ensure fast and seamless transactions.

Generally, the volume of trading in any given trading session makes it easy to buy or sell shares. There are an enormous amount of stocks to choose from.

For example, there is a wide variety of industries represented in stock, as well as shares from companies of differing sizes. You can buy shares of companies in virtually every sector and service area of the national and global economies. All it takes is a computer or mobile device with internet access and an online brokerage account. With a TD Ameritrade account, you have access to Trade Architect or the more advanced thinkorswim trading platform, as well as useful research and stock selection and screening tools.

Of course, when you think of stocks, you may envision the possibility of returns. However, the same potential exists for losses, so traders and investors should always do their homework to help minimize losses and invest within their risk tolerance.

You can trade and invest in stocks at TD Ameritrade with many different account types.

Learn Stock Trading Essentials | TD Ameritrade

If you intend to take a short position in stocks, you will also need to complete apply for, and be approved for, margin privileges in your account. There's one factor that stands well above the rest when choosing your trading platform, and that's you.

From your investment strategy and frequency of trades to things as simple as your preferences, TD Ameritrade offers a number of ways to trade the way you want:. Trade Architect - From robust tools to independent research, give yourself an intuitive web-based trading experience with no subscription fees, platform fees, or trade minimums.

Mobile Trading - Manage accounts, trade stocks and generate ideas with real-time connectivity on your mobile device or smartphone anytime, anywhere. Stock traders tend to build a strategy based on either technical or fundamental analysis.

How to Trade Stocks With Ameritrade | Synonym

Technical analysis is focused on statistics generated by market activity, such as past prices, volume, and many other variables. Charting and other similar technologies are used.

Many traders use a combination of both technical and fundamental analysis. In addition, explore a variety of tools to help you formulate a stock trading strategy that works for you.

See what sets us apart from the rest with our top 6 reasons to choose TD Ameritrade. For five years in a row, we ranked 1 for Long-Term Investing in Barron's Online Broker Survey.

Check the background of TD Ameritrade on FINRA's BrokerCheck. Educational resources are provided for general information purposes only and should not be considered an individualized recommendation or advice. TD Ameritrade does not charge platform, maintenance, or inactivity fees. Commissions, service fees, and exception fees still apply. Please review our commission schedule and rates and fees schedule for details.

Options are not suitable for all investors as the special risks inherent to options trading may expose investors to potentially rapid and substantial losses.

Options trading subject to TD Ameritrade review and approval. Please read Characteristics and Risks of Standardized Options before investing in options.

How to Invest in Stocks | TD Ameritrade

This is not an offer or solicitation in any jurisdiction where we are not authorized to do business. Choose a start page My Account Overview Home Balances Stock Quote Order Status Positions Trade Stocks Trade Options Trade Mutual Funds Trading Tools.

Home Why TD Ameritrade? Get Started Use the information and resources below to learn the trading fundamentals on how to invest in stocks. Understanding the Basics Stock Trading Setting Up Your Account Choosing a Trading Platform Developing Your Strategy.

How to Trade Stocks With Ameritrade | Synonym

Understanding the Basics A stock is like a small part of a company. Stock Trading Some things to consider before investing in and trading stocks: Setting Up Your Account You can trade and invest in stocks at TD Ameritrade with many different account types.

Choosing a Trading Platform There's one factor that stands well above the rest when choosing your trading platform, and that's you. From your investment strategy and frequency of trades to things as simple as your preferences, TD Ameritrade offers a number of ways to trade the way you want: In this video you'll learn how you can diversify by investing in assets that move opposite of each other. This can help reduce volatility and balance your profits and losses during bear markets.

Various asset classes are discussed. What Your Financial Services Firm Should Be See what sets us apart from the rest with our top 6 reasons to choose TD Ameritrade. See How We Stack Up Compare TD Ameritrade to other leading financial services firms. Best for Long-Term Investing For five years in a row, we ranked 1 for Long-Term Investing in Barron's Online Broker Survey. Careers Search Jobs Minimum Requirements Disclosures Privacy Financial Statement Newsroom Site Map Security TD Ameritrade Institutional TD Ameritrade Holding Corp.