When you buy stocks of a given listed company, what you are doing is buying a portion of that company. In buying, you are expecting that a company is going to do well in the newer future. For instance if you buy a $50 dollar stock, you will want to be able to sell it off at say, $60 in two months. That's one way of profiting from stock trading. Not just in divends, but I'm buying and selling as well.

Buying a stock — especially that first time you become a bona fide part owner of a business — deserves its own celebratory ritual. But before we pick out shareholder party hats and rent a ticker tape confetti cannon, let’s go through the basics of how to buy stocks.


How much money you have. Many online brokers have a $0 minimum requirement to set up a traditional individual retirement account or Roth IRA. For a regular account, the minimums can range from $0 to $2,000 or more.
How frequently you plan to trade. At most brokers suitable for new investors, stock trading commissions run between $5 and $10. Low commission costs will be more important to active traders, those who place 10 or more trades per month. Infrequent traders should steer clear of brokers that charge inactivity fees.
How much support you want. Consider the broker’s offerings of educational tools, investment guidance, stock-trading research and access to real, live humans via phone, email, online chat or branch offices.

It’s easy to buy stocks – your online broker provides easy-to-follow instructions on how to use their trading platform. The tough part is learning how to invest – how to actually pick stocks that can help you turn profit in the market. Here’s a simple six step list to picking great investments.
1. Understand how they are profitable and learn to commit to long-term thinking- When you buy a company's stock, what you're doing is purchasing an ownership share in that company. There are two ways to make money from stock investments. The first is to hold onto your shares and collect dividends, which are a portion of a company's earnings that it distributes to shareholders.
2 Look to businesses you understand and iIdentify companies with a competitive advantage
3.Find companies with strong management and Recognize growth avenues
4.Tune in to the most recent conference call
5. Determine a its's value and Start small and diversify
6. Follow up on your investments