Inveseting 101: Buy A Stock | Ope Thomas | Skillshare

Inveseting 101: Buy A Stock

Ope Thomas, Making complex ideas simple

Inveseting 101: Buy A Stock

Ope Thomas, Making complex ideas simple

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6 Lessons (26m)
    • 1. Introduction - What is the stock market

      1:29
    • 2. Key Terms for beginners

      3:11
    • 3. Buy a stock

      8:31
    • 4. What do brokers do?

      4:37
    • 5. Project: Upload your stock

      3:33
    • 6. Sell a stock

      4:22
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About This Class

Class Description

Taught by a former Wall Street Stock Broker

This course will teach you how to buy and sell a stock. We will walk through setting up an online investing account, reading the pricing and company information, buying and selling the stock. This beginner’s class is taught by Opeyemi Thomas, it is presented in 5 videos in 17 minutes.

 

Reading stock pricing is important because it lets you know exactly how much you are paying for the stock, how much you are making or losing and what the company is worth.

Investing is about making a return on your investment.

Understanding the company information will help you understand what makes the company you are interested successful. Then you can make your decision as to if you think the value of the company will increase once you know the price and the company information.

 Stay in touch with other lessons from YWI: Facebook

Watch previous videos about investing in the stock market: http://skl.sh/2jmku6G

 

You can also follow me, Opeyemi Thomas on Linkedin and Twitter

Meet Your Teacher

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Ope Thomas

Making complex ideas simple

Teacher

I'm Ope Thomas and at 19 I taught myself how to invest in the stock market. I then worked on Wall Street as a Registered Financial Advisor.

 

I have over 10 years investing in the stock market and I've seen thousands of investment portfolios and have spent many hours learning about finance and economics.

 

After 2 years on Wallstreet, I retired from the business of investment management and I returned to school and got a degree in finance and entrepreneurship because I wanted to share all the knowledge I gained with as many people as I can.

 

See my full business resume on Linkedin: Linkedin.com/in/opethomas

Connect with me on twitter and IG

See full profile

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Transcripts

1. Introduction - What is the stock market: Hello and welcome to how to buy a stock. This is OB Thomas and I will be walking you through the absolute basics of what the stock market is and how to buy a stock, and also how to sell, sell a stock. This video in this course is for complete beginners. If your first question is, what the stock market? This videos for you? Who am I? I'm OP Thomas and I've been investing for over ten years. I've invested money for clients as well as my own personal portfolios. You can follow me on social. I've held a series seven and series 66 and practice with different firms on Wall Street as a stockbroker. And I really love the topic of investing and also providing people with education and skills where they can take control of their own financial future through the vehicle of investing and the stock market. So I'm really glad that you've come to this video today. And in future videos we're going to walk through the very basics of what the stock market is. How to buy a stock or sell a stock, set up an account with an online brokerage. And we're gonna do all that. And this is just the beginning of your investment journey. So let's get to it. 2. Key Terms for beginners: Hello, welcome back to how to buy and sell stock with your hosts, myself, OB Thomas. And so today in this video, we're going to walk through what a stock market is anyway, will help brokers work. And what orders are. Stock market is very simple. It's like a marketplace. Any marketplace you can be familiar with, such as a farmers market. Where when you go into a farmers market is a market of all different types of fruit. And the stock market is very similar. You have, you can go into, so stock market and shop around from many different kinds of companies. And when you want to buy a stock or a share of a company, when you want to take stock in a company, it's like when you buy an apple from a bushel of apples, all those apples represents all the shares available for that company. And then you can buy a certain number of shares, which is similar to buying or owning part of the company. So those are partial ownership of all the apples in that basket or all the shares that accompany cells. And we'll get a little more into this when we start talking about how to actually fulfill and complete in order how to buy and sell stock. When you are in the farmer's market, the, the people could the farmer's market and people selling you the stocks are very similar to brokers in the stock market. So brokers handle the transactions and they make sure that the money flows and ownership of the stock flows in the correct direction and then goes to the correct parties as expected and intended. And for that, they collect broker fees, usually some brokerage offer free trading so that you can buy and sell stocks for free without a broker free. And they might have other offers there attached to their platform. And then most brokers charge a fee for the fulfillment for completing this transactions of buying and selling those stocks. And the way that a stock is traded on the stock market is through orders. This is similar to when you create a, a cart on your Amazon. You're creating an order, an order take it that you want to be fulfilled to, which says I want to own these many number of shares or I want to sell these many number of shares. And shares are partial ownership of a company. And they can be very similar and thought of as, as Apple in a basket. So there you go. Those, that's what the stock market is. And that's how brokers work. And you complete your transactions of buying and selling stock through working with brokers. Alright, let's move on to the next video where we will talk about brokers more in depth and then also walk through creating your project, which is created when an order to buy or sell a stock. Look forward to seeing you in the next videos. 3. Buy a stock: Hello and welcome to the fifth video and how to buy and sell stock. To its video, we're going to walk through buying the stock. We're going to go through a live trade on E-Trade and walk through that process. Ok, here's just said empty account I set up while I go here, see its charge some fees to it. So some accounts also do charge some of like reoccurring operating freeze for again, similar to just an account management fee like you would get from your bank as well. Let's look here. So before you buy a stock, you would click this part here to search for a stock. So you can do this with any platform. You can type in. Let's see, you will type an apple, you'll start type it in the company name or their symbol. And it'll come up. You can click that and look and gives you a complete snapshot of all the important primary information, financial information about the company to help you make an investment decision. So they show you the last price the company share was at, which has the Open, the sorry, the previous open. And they show you what the, the open is, the expected price on the, on the next business day. So here, right now it's, it's a Tuesday night while I'm recording this. So this open would be looking at the price AOB on Wednesday morning. And this price would be the price that it close that today at 430 PM. One thing that's important to mention is that the stock market is open only doing 9AM, 930 AM, and 430 PM Eastern Standard Time. Alright. And then you have the volume, which is just how many shares have been she had been sold in that last business day. Now we're not gonna go through all of these and you can, we'll have those in future videos. But here is a way to find the financial information for this company. And then you can scroll down and you can see headline. You can dive deeper into what analysts are saying and really go deep into the company, into information, everything about that company to make a smart investment decision. Okay? And then when you're confident that this is a stock that you want to buy. So you say, OK, I want to own Apple, I want to, I want to buy Apple. I want to own a portion of Apple and be an owner of Apple. All right, and then it'll give you this, this screen, which is your order screen. There you go again with the order. So this is an order you're creating here. It's like again, your cat, your car, and Amazon. Maybe we shouldn't use Amazon example. Let's see, maybe we can change it. Alright, I started typing it in and there you go, pops up Amazon. And you can look at information. You can see if you're more technical and you want to learn about charts and trading through charts and technical trading, you can look at the charts as well. And let's say we want to look at an Amazon will go back to Apple. Since we already looked at that information. That's just to show you the functionality. But thinking about how to actually invest, you want to just have a very strategic approach and understand why or buy and accompany not just buying companies because sound cool. So here you go. It tells you the last price that it was at. So this is the price that you'd be paying for it on the next business day. So when we create this order, it'll be considered aftermarket. Therefore, it won't actually be completed until the next business day or the next data that stock market is open. So once 930 AM that disorder goes into q, n will be fulfilled once received by the, once it gets first in line to purchase it. Meaning There's a bunch of orders out there that needs to be fulfilled at any given moment. And they follow a queue. Nowadays are pretty much just automated and they are completed in order of how, when it's received. But back in the day historically it was actually people just on the phones writing down and taking cues and actually just fulfill in each transaction one-by-one. Select the company you want to buy, you put their symbol, then you select what you want to do. Here we want to buy. So we want to buy shares of Apple. So we specify how many shares do we want to buy? Okay, lets say we want to buy ten shares this year on each trade. They have a cool function where you can calculate what that would be. So let's say I want to buy ten shares. How much would that be? O okay, they didn't chose their well, it's not spent too much time there. So we want to buy ten shares. And you can use a calculator to figure out how much ten shares of $124 a share would be? Hint hint. One hundred, two hundred and forty. All right. So the price type, the one you're most concerned about right now would be the market. Now, it's the market price means that you, when the order is completed, meaning when it's fulfilled, you will be paying the price that it is at that, at that time when the order is fulfilled. So although you're creating an order here at 124, if when this order is actually fulfilled, the prices that might be at one hundred, twenty four and sixty cents or 125. But, or if the stock increases very rapidly, right? When the market opens or before market opens, it could be fulfilled at a higher price or not at all. So That's why they gave me different price options. And you can learn all about them. And we might, we might just touch on a bit of them later in this course. But the market price is the main price, meaning it's the price that the stock is at, at any given moment. Again, the market prices what the stock is worth at any given moment in time. Okay, so we're going to get that market price. So once this order is refilled, we're going to get it at the market. Pricing says good for DEI mean, and if it, if it, if it never fulfills that day, if it's if if if if we if we're not able to get order completed that day, usually doesn't happen with the market order, but it might happen with some other market price types. We can just cancel out by the end of the trading day. So if it doesn't, just stay there and rollovers at next day unless we specify it. And all or none. Not the worried so much about this, but this this means that, okay, if you want, if you can't all the shoes that you want, if we can't get all ten shares that we don't want any of the shares. But here you don't need to worry about that. Because generally you're going to get all ten shares. Alright? So you preview, you order or you can save it for later. Okay, we have a finite this belt. We haven't wanted this account. So there's nothing there. So we can just save it for later, but that is essentially how you create an order. Once you preview it, does only only option there is just to confirm. Alright, so congratulations, isn't now you've walked through exactly how to buy a stock. Next, we're going to look at how to sell it. Very similar functions with just a few minor differences. 4. What do brokers do?: Hello and welcome to the third video in how to buy and sell stock and won't be Thomas. And last video we walked through what a stock market is, also, what brokers are, and how they function. And then what an order is, which is how how you create a a ticket essentially to purchase or sell a stock, and you do that through orders. So in this video, we're going to walk in going deeper into what brokers are. So brokers do primarily as they settle transactions. That's the formal term for what what the dope brokers do for clients in the stock market and their and their role. And what that means is that they ensure that the money is transferred to the correct place and also the ownership of a stock is transferred to the correct place. It's very similar to what a credit card company does when you swipe your card. They act as a merchant service for transferring those funds. And, and the ownership of those funds. And brokers do a similar thing in the stock market where they are transferring ownership of companies between investors and then collecting the amount for the investment as well as oftentimes they collect broker fees. So the function is connecting those buyers and sellers together in the same way that we talked about the farmers market analogy. And where they can bring together those that are selling company stocks and those that are invested in company stocks. For all this amazing service that they provide, they collect fees for that. They generally have a flat rate fee on every transaction that goes through their platforms. Others will have a percentage of the amount of the order size, and some don't have any fees at all. Actually, some new apps such as Robin Hood and other mobile platform based trading applications don't collect v. So those are some things that are interesting to look into as well. Com and brokers going to list just a few here to get you the start and aware, but there are plenty out there that you can look through and also find some that meet your specific needs and interests. E-trade as interactive brokers, which is the most popular online brokerage. And they, you can, you can also trade, you're your own money there you can, I believe, do plenty of research through their platform also. They, they are connected to banks as well so that they can help with other financial needs as well. And they also have Robinhood. This is one of the the brokers that I mentioned that don't have any fee. So this is a no fee trading platform. So that's a very, again, very interesting places to look. And i, somewhere I recommend starting as well as a very new broker. Because you want to, you want to get yourself kinda warmed up to the market. And that's a great way to start through Robinhood app. Another common one is Charles Schwab this day they have also account managers. So they have like actual people who will help you manage your funds. Some larger accounts will be no preferred to have some more hands on management of their portfolios as well. Not just not just having the doing all or like managing all their investments. But you can you know, you can do that through stall Schwab's also so that so there are really great versatile platform to use. And there you go. That's just a brief overview on, on some common brokers out there and, and, and a slightly deeper dive into what brokers do and helping you really understand the functions of notches brokers, but the stock market as a whole. So next few veils. Next video, we're gonna talk about the project. In the next few videos, we're going to walk through actually created an order and buying and selling of stock. Very excited. And I look forward to seeing you at the next video. 5. Project: Upload your stock: Alright, for the project, I've tried to make it pretty simple here you have two options. You can either take a screenshot of an investment profile that you've created on any brokers that you choose. So if you create an online brokerage accounts, then just take a screenshot of that account and just your name, not then no private information, just maybe your username in the end, the website. You can do that with the screenshot and upload it. Or you can just write a text document. So texts or Word document or anything that you prefer. And just write what brokerage that you plan or we are interested in using and what stock you'd want to buy. And that's, you can just upload that also onto the platform as a project. Now, if you want to create an account and you have the ability to create an online account, which you should, hopefully, if you are planning to invest in your own money in the stocks. Here's some slightly longer list of some more online brokers that you can use to. There's some that I didn't mention in the other video. You've got tray King, Scott tray, some coinbase which does crypto currencies as well. Robert had also dust crypto currencies. And to set up in an investment account, you're going to need a few things. One, you'll need an active BankAccount and investment account functions very similar to a bank account actually. And, and they, and they work and they connect usually require a connection to a active bank account also, not always. Not always, I believe, but but they they they generally do require you have enough active Beck account at least to make any trades. Maybe not to set up the account, but to make trades and n fund the account, they would need direct connection to an active BankAccount. Very important. Also, there'll be asking you for your personal and financial information. Again, this is like opening up a bank account. So they would go into as things such as employment information and things of that nature. So you can think of types of questions that you are comfortable answering for when you open up a bank account or go to the bank for any other types of activities and where they request information. So very similar to your banking information as what there'll be asking on these brokers as well. And that's to remain compliant. And with the regulation, with the regulation regulating bodies such as FINRA and the SEC. Alright, so next, you would usually have to also put up initial deposits into the account. Some don't require you to have an initial deposit to open up the account. But many do and many do. Of course, before you make any trades, they would want you to secure funding in that account. First. There you go, you've got everything you need now to get started and to open up an account. I hope you're excited and I hope you're thinking already about what stocks do you want to look into and buy? And look forward to seeing you in the next videos, where we're actually going to start talking more about the functions of buying a stock. And then once we do that, we're going to walk through selling a stock and then we're all done. Great job coming this far. And let's keep going. 6. Sell a stock: Alright, where here now again to talk about silliness stock. So in the last video we looked at buying a stock, and here we are going to walk through selling a stock, slightly shorter video then the last one. But very similar functions. Two important points I want to touch on in somewhat of a review as well. Sold means that you are selling the stock obviously. But one important thing with the stock market is that when you own a stock and either the stock goes up or down while your own in it. You're not actually realizing that change in price until you sell it. So that means that the stock is down and you still own it. Yes, it has less value, but you technically habit lost money yet. But if you sell it at the lower price, then you've lost money. Now again, same thing if the stock is up and you own it, you, you, the stock is more valuable, but you haven't yet earned that money. So when you sell it and the stock is up, then you've earned that profit and he's made money on it. And that's what it means for the gains and the returns to be realized. And for the broker, they usually charge a fee for this cell into the stock. Sometimes they don't charge you to buy the stock, but then they'll charge you to sell the stock. This is the step practices more common around account managed brokers. All right, let's look at Selma. So now you should be familiar with this screen. So we're looking at the same exact stock here and same as x green. Now, go here to the action and I'll change that to sell. Keep it at ten. So we still want to sell ten shares. Same thing with the market price. Market price means that when the order is fulfilled, it'll sell at the price in which it is, at the time in which it's fulfilled. And everything else is the same, except here you just film stock and that's all. And keep in mind the gains and the losses are not realized until you sell a stock. That is only when you can say you've either lost money or you've gained money. While up until then, it just means that the stock or the, is less valuable or it's more valuable. And that's all. So let's touch on just a bit briefly on some other order types, like what we've seen here in the price type. Two other common order types would not gonna go too in depth into it here it's just a very brief overview. But two other types are stop orders and limit orders. And what these two order types do is they give you an ability to control the price in which you pay for the stock. So it's not just subject to the market price. This is common if you think that the stock might move dramatically before you're able to complete, before you order is able to be completed. Or if you want to just control the price so that you can average out at a certain price for the stock, for whether a certain price for where you buy it or certain price for where you sell it. So that's what these types of orders, you can look into it a little bit more or teach more in other videos. But again, just to give you, it gives you more control over what price the stock is at when you purchase it, right? Congratulations. We're, we've gone through the whole process of buying and selling the stock. And you've learned a ton and everything, you need to get started trading your own stocks. I'm very glad you were able to join this video with me and I thank you very much. And you can join me on social and any connect further and ask me any questions that you like. All right. Thank you again. And look forward to seeing you next week.