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February 15, 2022

How To Buy Stocks In 2022?

Have you ever asked yourself the question of how to buy stocks? For beginners, the concept of buying stocks involves picking, choosing, and investing in shares of companies in an effort to make money from price appreciation, dividends, etc. Most investors either have a short-term approach or are invested for the long-haul. With so many different strategies, the same question comes up again and again – how do I invest in the stock market and buy stocks?


How To Buy Stocks

Step By Step

1. Open a Brokerage Account

Buying stocks requires having an account with a brokerage that gives you the ability to buy and sell shares of a corporation. If you do not have an account, you can open one with one of the main players in Canada such as TD, RBC, Questrade, Wealth Simple. Here at Theta, we use a brokerage named Interactive Brokers that gives us the lowest commissions and best fee structure – you can choose any brokerage you feel comfortable investing with.

2. Choose Your Investment Account Type

In Canada, we have multiple different investment accounts, ranging from RRSPs to margin trading accounts. When you learn how to trade, you will soon realize that you find an array of accounts, and sometimes beginning with the simplest version, such as a TFSA may be a good route. For us here at Theta, we trade options and sell naked puts, this means we will have to use a margin account – which isn’t our rule, but the government’s rules.

3. Practice Trading Virtual

When you get into trading, you must learn how to become a trader or investor. The best method to learn how to become a trader or investor is by practicing. As some of the greatest athletes and investors have said over time, practice makes perfect. So, open a practice account, and test out the strategy you are choosing to use. Here at Theta, we have one strategy, and we perfect that strategy by doing it over and over again – repetition is our friend.

4. Choose Great Business & Invest

At Theta our first rule is to not lose our money, our second rule is to make money. We always follow our rules in order. Over a long period of time, the market has rewarded earnings with stock appreciation and performance. As such, at Theta when we learn how to option trade, we first choose the right company to invest in. We look at items such as fundamentals, valuations, technical and more. We do our research in house, so that we get no biased information and can make informed/calculated decisions for our investing.

5. Learning Options & Stock Market Investing

If you are someone who wants to know how to get into trading or how to become an investor/trader then you can follow the steps above or check out Theta’s YouTube channel. In our investment strategy we choose to use options, specifically naked put options, when trading to help us generate an additional income stream. Our strategy is straight forward and fairly simple. We invest in high-quality stocks, and we get paid for agreeing to buy them at a discount. By doing so we make significant income from the markets and are able to offer this learning to our students via our trading course. If you want to learn more, check out our FREE blogs, courses, or FREE YouTube channel as it has tons of content on how to get started in the stock market and how to become a great investor. Happy Trading!

Theta Trading

At Theta Trading, our goal is to help you achieve financial freedom by teaching you the foundations of trading stock options. Join our growing community.