How to Buy Your First Stock (Step-by-Step for Dummies)
Buying a stock used to require a phone call and a $50 commission. Today, you can own a piece of Apple or Tesla in 5 minutes with $1. Here is the exact process.
The 3-Step Buying Process
You cannot buy stocks at a grocery store. You need a middleman called a “Broker.”
| Step | Action | Time Needed |
|---|---|---|
| 1. Open Account | Submit ID & SSN | 5 Mins |
| 2. Fund Account | Link Bank (ACH) | 1-2 Days |
| 3. Trade | Select & Buy | 10 Seconds |
• Apple = AAPL
• Tesla = TSLA
• S&P 500 ETF = VOO
| Req | Details |
|---|---|
| Age | 18+ (or Custodial) |
| ID | SSN Required |
Critical: “Market” vs. “Limit” Order
When you click Buy, the app will ask “Order Type.” Choosing the wrong one can cost you money.
1. Market Order (Speed)
“I want to buy this stock right now at whatever price is available.”
Risk: If the price spikes suddenly, you might pay more than you expected.
2. Limit Order (Price Control)
“I want to buy this stock, but only if the price is $150 or lower.”
Risk: If the price never drops to $150, your trade will not execute.
Beginner Tip
Can’t Afford a Full Share?
Some stocks are expensive (e.g., one share of Booking Holdings is over $3,500). You do not need that much money.
Dollar-Based Investing
Instead of buying “1 Share,” you can choose to buy “$50 worth.” The brokerage will give you 0.014 shares. You still get the same percentage of gains and dividends.