Like the majority of us, you’ve probably fantasised about investing in shares of a business whose value would soar in a few years so you’ll have enough to travel and relax for the rest of your life. Even GameStop might have been one of your top choices for stock purchases, or it soon will be. But hey, you have to start somewhere, right? Investing is actually a little more complicated than waiting for the birds to fly into your mouth ready roasted.
The good news is that, in contrast to the past, you can now completely purchase shares of companies like GameStop online.
Although we don’t specifically advise purchasing GameStop stock, this article explains in plain English how to do so, using GameStop as an example. You get to choose if GameStop should be your first stock purchase. As this article is not intended to be investment advice in any way, we strongly advise getting in touch with investment advisors.
Overview of Game Stop
US Consumer Cyclical firm GameStop is listed on the NYSE under the GME ticker. It is renowned for selling video games, electronics, and accoutrements like headsets and controllers. The main exchange it trades on is the NYSE, so if you want to buy its stocks, you’ll need to find a broker who gives you access to it (stay tuned; we’ll cover this in more detail).
All of this is unrelated to whether GameStop is a good or terrible business. However, you might want to be reminded of the investments you are thinking about making as part of this example.
Now let’s look at the steps!
Steps of Buying GameStop Shares
Okay, so you’ve determined that you want to purchase GameStop for your own reasons. That’s a good beginning. Before you can declare that you are a GameStop shareholder, let’s see what is in store for you. Again, we simply use GameStop as an example, but the procedure is essentially the same for any company’s shares.
Step 1: Find A Good Online Broker
The exchanges that an online broker has access to are one of their distinguishing features. Simply because they don’t have access to the NYSE, some brokers won’t let you purchase GameStop shares. It goes without saying that you require a broker who grants you access to this exchange.
The broker should also fit you, which is the next crucial factor. Some brokers are extremely expensive if you only want to sometimes buy a few GameStop shares, while other brokers may be completely free. Not all brokers enable every citizen to register an account with them. Using our survey, you can actually obtain some excellent advice on picking the best broker:
We consider a variety of aspects when suggesting a broker, including the broker’s costs, trading platform, available markets, and ease of account opening. Safety is also crucial, but as we only suggest safe brokers, you do not need to be concerned about it.
Step 2: Open Your Brokerage Account
You must create an account after choosing your online broker. This is very similar to a traditional bank account, and opening one is typically done entirely online. Some brokers make the process as simple as creating a new Gmail account, while others have you wait a few days while they examine your past. You will use this to store your GameStop shares rather than money, therefore you will undoubtedly need it to purchase and store your shares.
Step 3: Deposit Money To Your Account
To purchase those GameStop stocks, you must pay cash. The initial step is to send (deposit) this money with your broker. Typically, opening a brokerage account is easier and quicker than doing this.
The two methods of depositing money that are most frequently used are bank transfers and credit/debit cards. You can deposit money into your investment account with some brokers using alternative electronic wallets, like Paypal, like eToro.
Step 4: Buy The GameStop Share
You have the share target, the account, and the cash. Pressing the “purchase” button is the last step! You sign in to your online brokerage, look for GameStop stock, enter the quantity of shares you want to purchase, and click the buy button to start the share purchase process (in trading lingo: execute the buy order).
Here are a few hints: you have a variety of order kinds to pick from when placing an order. While a limit order enables you to define the precise price at which you wish to purchase the share, a market order purchases at the current market price.
Step 5: Review Your Game Stop Position Regularly
After buying your GameStop shares, your work is not done. Monitoring your investments is now essential. Basically, this implies sticking to your financial plan. If you purchased a GameStop share with the intention of holding it for a longer period of time, you might attend the annual meeting and gather all the latest news and corporate information.
You might employ various position management methods if you intend to sell it soon after a price increase. For instance, you could use the stop-loss to establish a price at which you want to sell the share in order to prevent future losses, or you could set the target price at which you want to sell it with a profit.
Once you have mastered the five processes involved in purchasing shares, take a moment to review the top five brokers we have recommended.