Learn How to Buy Many Stocks

In the past, many people bought shares at 100 shares per transaction at each transaction. Brokers also strive to ensure that investors follow this practice. They do this by making a deal with a cheaper commission if it is a multiple of 100 shares. If you want to say buy 75 shares, you pay a higher commission. In the end, people do not want to pay a higher commission

The effect on investors is to train them to lower the prices of the stocks they trade. Compared to $ 50 to buy a $ 50 stock, it's a $ 5,000 deal that makes it easier to pay $ 500 for a $ 5 stock plus up to $ 500. This is done as an investor chooses a cheaper stock. Unfortunately, in the stock market, you often get what you pay for. If you buy cheap stocks, you may get cheap results.

Today, however, you can buy the number of shares of any stock you want and pay the same price. This means that you can focus on the more important numbers, dollar investments, rather than buying stocks. If you have a $ 1,000 investment, buy a $ 1,000 best stock you can find. It does not matter if it means you only buy 20 shares of $ 50 stock or 50 shares of $ 20 stock. You want to focus on equity options. Buy the best stock that you can find, regardless of the price

The real number you want to focus on is the percentage of returns you get for your money. Back to our example. If you buy a stock of $ 1,000 for a particular company, if you sell it, you earn $ 1200 and your profit is $ 200. As a percentage, 200 divided by 1000 equals the 20% rate of return

When deciding how much to invest, the key is not the number of stocks, but the dollar amount of the investment and the resulting return.