Photo of Eric R. Ebbert, CFP®, MBA, CEO Eric R. Ebbert, CFP®, MBA, CEO Dec 13, 2020

If you are looking for ways to grow your wealth, you may be considering getting into the stock market. The stock market presents fantastic opportunities for growing your wealth or saving for retirement, but be warned: It is not all glamour and riches like “The Wolf of Wall Street.” For most people, success in the stock market involves years of careful decision-making that pays off when you are ready to retire or have reached your goals.

Still want to get into stock trading? No one can become an expert overnight, but if you are ready to get started in the stock market, the information here can help.

How does stock trading work?

For most people, involvement in stocks does not mean scrutinizing every movement the market makes every minute of every day. It is usually as simple as making occasional shifts or adjustments in your portfolio until you have reached a long-term savings goal. Small shifts in the market or periods of volatility should not be much of a worry for these types of investors.

However, those who wish to maximize their budget sooner rather than later want to get more involved in trading. This is the practice of buying stocks at a low price and selling them when they are higher. No one can totally predict the market, but some analysis and educated predictions can lead to investors making smart trades that grow their wealth.

In the stock market, traders are represented by brokers (often an online broker these days). You place your trades through the broker, who deals with the stock market exchange on your behalf. They can place trades in the New York Stock Exchange and Nasdaq any time between 9:30 a.m. or 4:00 p.m. Eastern time. 

Usually, you have to pay a fee for your broker for managing and trading your stocks, but this cost can be well worth it for savvy investors who expect to make a profit.

As far as when to buy or sell, it is up in the air. The typical strategy is to buy low and sell high, but the trick is deciding what is low and when it is high enough to sell before it starts to plateau or dip. Some experts claim to know the market, but in reality, the market is unpredictable. At best, if you want to get into trading stocks, you should talk to a financial professional who can help you allocate funds from your personal financial plan for trading stocks, so you do not have to worry about the rest of your money or your savings.

Talk to a ProVise CFP® professional about managing your personal finances

Whether or not you think getting into trading stocks is right for you, it is always a good decision to consult a financial professional for personal financial advice. At ProVise Management Group, our team can work closely with you to help you develop a personal financial plan that helps you reach your goals.

Our CERTIFIED FINANCIAL PLANNER™ professionals can get to know you and your current financial circumstances, goals, risk tolerance and personal values to help you develop a plan that works for you. We can also create a written plan for you at a fiduciary standard of care. All our written plans come with an unconditional money-back guarantee. If you are unhappy with your written plan, you can return it to us, and we will refund 100% of the fee paid.

Are you ready to talk to a professional about your personal financial plan? Contact ProVise today to schedule a complimentary consultation.