You know the types of companies I am talking about. I’m talking about AT&T, McDonald’s, Kraft Foods, just to name a few of the companies that would fit this criteria at the time of writing. Of course I’m not making a recommendation to go about and buy stock in these companies right off the bat, but if you have been asking yourself about the best stocks to buy now, these are types of companies that come to mind.

Slow but steady wins the race when it comes to investing in the stock market and planning for retirement over the long term, and buying stocks that pay a good dividend that you can reinvest into more shares of that stock goes nicely with this plan. It is easy to get caught up in the game of wanting to buy the next hot penny stock available, or trying to rich quick of the next IPO to come out, but a good steady, solid approach of investing in the above mentioned types of companies will do wonders for your portfolio of the long haul.

If possible my suggestion is for you to use a trading platform that will allow you to filter stocks according to the criteria mentioned above when you are looking for the best stock to buy, and find those dividend-paying stocks that seem to be trading at a price much less than what they should be worth right now. Remember that a good company’s stock price can fall simply because for whatever reason there are more people looking to sell that stock than buy it. These kind of stock blunders have a way of correcting themselves, as in the end the companies that people do want to be a part of, the best stock to buy, are from the good solid companies that for whatever reason might just be going through a bad lull in their company history.

It wasn’t my idea

I guess I can’t take credit for the idea then. But I don’t think Tim Hanson can either. I’m sure we are not the first people to come up with the idea of buying stock in companies that seem to be undervalued… isn’t that part of Warren Buffett’s mantra? And to buy stock in companies who give a nice quarterly dividend? Well, who wouldn’t think that some of the best stocks to buy are going to be those that, in addition to growing over time, again because they are undervalued, are also those that are going to give you a decent little chunk of change every quarter that you can withdraw, or preferably reinvest back into more shares of the same stock? It just makes sense.

Great stocks abound

The point here is that you can find good stocks to buy wherever you are looking. There are roughly 3000 dividend paying stocks in the stock market, so that gives you a large base from where you can begin to drill down and look to find those that are from the well established, yet undervalued companies that I was referring to. This to me is a much more sound plan for the long term than trying to get involved in what Is the latest best stock to buy, here today but gone tomorrow type of approach. This is the approach that gets you somewhere in ten years, twenty years, as opposed to only being able to look back and count your never ending per-trade fees because you thought you would day trade your way to millions in a couple of months.

Slow but steady wins the race when looking for good stocks to buy. A plan like the one above, executed over time is sure to increase your stock buying portfolio in ways you hadn’t imagined.

There of course are different ways to go about stock buying, depending on a number of factors. Not the least of which might be your age. The mantra I have always heard and lived by is to invest in more ‘risky’ investments using your age as the percentage that represents the more ‘conservative’ part of your portfolio. So if you are 40 years old, this idea would state that you should have 40% of your portfolio in more conservative investments, and 60% in riskier investments. I’ll leave determining what is conservative and what is risky up to you and your financial planner, but suffice it to say, it might be a good thing to think about when determining what stocks to buy, and how to buy stock in general.

Buying stocks can be done many ways, but quickly increasing in popularity is the idea that you can buy stocks online. This is done through an online broker where you set up a trading account, fund it with your desired amount of money, and can instantly begin buying and selling stocks at will. I wouldn’t use the ease with which you can buy stock trick you into buying every new IPO or to make you buy penny stocks on a whim. Even though it is cheap to buy stock online remember that your money is at risk with every trade that you place, so it must be done prudently. Buying stocks for the long term, from good reputable company is a far better option than looking to buy stocks off of some ‘good stocks to buy’ list of the day.

Stock buying in my opinion is still one of the last ways that the little guy can get ahead. Through prudent market research, watching companies and stock prices as they rise and fall, you can essentially buy-in and own a portion of some of the greatest companies this world has to offer. That is not something that should be taken lightly, but definitely something that every person who has considered the idea of buying stocks should do.

I firmly believe, that in addition to your Roth IRA’s and your 401k’s and everything else that a person might be banking on for their retirement, the simple idea of stock buying, that is individual stocks, in well established and profitable companies is the way to buy stocks for the long term. These are the companies whose stock prices always go up and down, but remain positive over the long haul, with seemingly no possibility of ever going out of business. These companies are those that pay a good dividend, which can be reinvested into purchasing more stock shares to further compound the size of your portfolio over time. In that way, the question is not so much how to buy stocks, but when.

Stock prices go up and stock prices go down. That is the nature of the beast, and always will be. If you stick to the idea purchasing stock in the above mentioned type of companies, instead of squandering your money trying to buy penny stocks or worrying about what are the hot stocks to buy at the moment, you are setting yourself up for the best way of how to buy stock for the long term. Keep this mentality, and don’t let the stock burn a hole in your pocket, so to speak, when it begins to gain value. Remember what you are doing and how you still want to be a part of the market in five, ten, thirty or however many years it is until you hope to retire.

For some people the question might be more of how to buy stock on a low budget. I don’t however think the answer is much different. Some people believe that buying a stock who’s share price is only $10, is five times the value of a stock who’s share price is $50. That is not necessarily the case. The first stock could drop to $2 per share just as easy as the second stock might rise to $100, split, then do it all over again. With a hypothetical $500 I would much rather be able to only buy 10 shares of an excellent $50 per share stock than 50 shares of a mediocre $10 per share stock. Don’t let bigger stocks scare you away, they are often better companies and the exact answer as to how to buy stock on any budget, for any person.

Buying stocks online is done by opening a trading account through an online broker, such as eTrade or Scott Trade, just to name a couple of the big ones. You are set up with what is called a ‘trading platform’, and from the comfort of your own home you can open up charts, view historical data and buy stocks online.

The pluses of being able to buy stock online like this are many, as you can probably see already. The simplicity of trading from your own home, mixed with the beauties of competition have allowed stock traders and buyers alike the unique advantage of being able to make a stock purchase for a few bucks; usually between $3 and $7, from the numerous online brokers I have taken a look at and used. Indeed stock buying has never been more simple or affordable.

So how do you get started buying stock online? You’ll want to start by doing a little bit of due diligence on the different online brokers available to you. Doing a simple internet search for online broker reviews will probably bring you to a couple of forums where you can see what other people have said about their online trading brokers. After you choose one, you will need to register and sign up with that broker. They will have a pretty standard online sign-up form for you to fill out, then you will fund your account using a few different options available, and finally you are ready to buy stocks online.

Although mostly positive, there can be down falls to the simplicity of being able to buy stocks online. Being that it is much more simple and cheap to buy stocks, the allure of over-trading, under the guise of ‘day trading’, is always a threat. People, in their search for the best stocks to buy, will often find themselves scalping, or buying and selling very quickly, or falling for every little IPO or thinking they want to buy penny stocks for a quick buck. Don’t fall into these traps. Instead, focus on why you are buying stock in the first place and slowly grow your portfolio over time. That is how to buy stocks online.

So, how to buy stocks online? The first thing you will need to do is open a stock trading account with the online broker of your choice. There are quite a few reputable companies out there, but suggestion is to do a simple Google search, and find reviews on the many different online brokers available to you, and see what the people in the trenches are saying about their brokers right now. Buying stocks should be a good experience, but with the wrong broker it can be far from it.

When you have set up with your online broker of choice, you will need to fund your account with money. Different brokers will allow you to fund in different ways, and also have different minimums that you will have to fund your account with. Those would be just a few of things that you would want to look at before opening an account with an online broker. When you do, you will be set up with what is called a trading platform. That is how to buy stock online. Stock buying using a trading platform is simple, and really just a matter of point and click. There might be a bit more to it, but the best way to figure it out is to play around with the platform. I wouldn’t do this using your hard-earned money, however. Most places will allow you to open a dummy account, in other words, an account with $50,000 in fake money so that you can practice buying stocks online without any risk to your capital.

How to buy stocks doesn’t need to be a difficult question to answer, the real question lies in what are the best stocks to buy, once you set up online. Good stocks to buy abound, but you will need to be looking in the right places. I would typically avoid the hot trends of looking for penny stocks to buy, and other more risky moves, and sticking with reputable, long-term companies that pay dividends when you are looking for the best stock to buy for your personal portfolio, and especially so if you are just starting out. There are countless places online that give good, sound advice on what stocks to buy, based on years of cumulative experience between many different professionals. Keep things simple and realize that you are in the game for the long-term, and your chances of coming out fine greatly increase.

Yes, I said it, but I suppose now I have to explain, and let me preface this by saying that I AM NOT with 5-10 years of normal retirement age. If I were I might be singing a different tune. Here’s the deal. Based on history, reinvestment of dividends and the fact that I like to buy stocks at a lower price, rather than when they are close to peaks, I prefer a bearish market. I want the best bang for my buck right now. Unless you are within 5-10 years or so of retirement, you should want the same thing.

It isn’t too different than other markets. Would you want to buy a house when house prices are up towards their peak, just because as of late house prices are screaming up? I hope not, because after the boom comes the bust. This is also how to buy stocks. Buying stocks and buying real estate are similar, and it sounds rudimentary I know, in that you want to buy low, and sell high. I know you have heard that mantra, but you’ve got to apply it too!

So what are the best stocks to buy? Well that is a debate for another time, but what I do know is that on any given stock, I’d rather buy it cheaper than more expensive. I know… duh.  Stock buying doesn’t need to be rocket science, or any kind of science for that matter. Just know that you are in it for the long-haul, that this is to secure your future one day down the road, and not next week, and you’ll feel a great sense of relief as you suddenly realize that your portfolio losing 38% in one year, is not the end of the world… and not even the end of your journey to buy stocks for your future.

So what do you do now? Well for one thing, you don’t panic. Know that when the market is going against you, it is often a blessing in disguise. Set up shop with your preferred online broker to be able to easily buy stocks online, and begin to do so as your funds warrant. I won’t be spouting off some sort of ‘best stock to buy’ list, but I can tell you some of my favorite things to look for: I like to buy stocks that seem to be under-valued, and that pay a good dividend. I am also partial to well-known companies, the Coca-Cola’s of the world. In the end of course, buy stocks how you feel comfortable, and how you see fit.

What You Need to Know Before You Buy Stock

There are some important aspects of this game, if it can be called a game. Going into stock buying blindly will surely lead to trouble. How will you learn which stocks you want to buy, and when you do figure that out, where will you go to buy them? Will you want to buy stocks quickly and try and turn them around quickly for a profit, or will you want to hold them for a short while, or a long while? Along with the seemingly endless possible rewards, you also need to know the risks involved in investing. To simplify it, you will want to know a couple of key points as you begin. A short breakdown follows:

1.    Knowing the reason you want to buy stock.
2.    Where you can go to do your stock trading.
3.    Similar markets you can get involved in.
4.    Where you can get advice on how to trade the stock market.

Get Educated Before You Buy Stock

Above all else, make sure that you know what you are doing. Undoubtedly you will make some bad moves, whether it be a bad short term trade, or holding a stock for a long time only to see it turn around on you, taking your profits with you. It is important to remember that since inception, the stock market has always gone up over time. If you are careful and methodical you can take advantage of some of the easiest money you will probably ever earn.

I have tried to provide a resource for you here to be able to get a grasp on what you can do as you begin your path to becoming a trader. The internet of course contains a plethora of fantastic information that you will be able to use as you get your trading career started.  Don’t get overwhelmed, but focus on those resources that will help you to move forward, and cause what some call ‘paralysis by analysis’.  Learn before you begin, but a lifetime of learning without implementing will not get you anywhere. My suggestion as you begin would be to take a look around and get a feel for the route that best suits your needs, and then begin to dig deeper before you buy stock for the first time.

You might work for a large, publicly traded company where you can buy stock in that company.  They might even give you stock as a bonus, or as a part of your pay.  This is probably the case if you work at a place like Wal-Mart, Nike, or many others.  This of course won’t include most people, as 80% of people are employed by small businesses. In addition to this, however, there are many companies that will sell you stock in their companies directly. General Electric (GE), Home Depot (HD) and many others will let you take part in these direct stock purchase programs.

The Traditional Route: A Stock Broker

You know, the old guy that has an office down on Main Street.  Stock Brokers buy stock on behalf of clients, often times giving advice along the way. I know, I’ve heard the joke as well: Why is the guy who gives you financial advice called a stock ‘broker’. Good question.

Online Stock Brokers

Take the idea of the stock broker, but give him a webpage and now you have an online stock broker.  Something like that, at least. When you open an account with an online brokerage in this way, you are given what is called a trading platform. Basically this is a computer software where you are able to login, see charts and graphs of all the different stocks you could imagine, and place trades, deciding on the spot what you want to buy and what you want to sell.  Buy stock from the comfort of your own home? I know. A novel idea.  I worked for a period of time for an online broker. In a sense it was like a regular broker, only that we didn’t give trading advice of any kind, we basically helped people to set up trading accounts so they could get going on their own.  It is a very simple thing to do. The hard part? Know which stocks to buy!

It is important to note that there are two schools of thought when it comes to how you should trade. Fundamental traders take a good hard look at the ‘fundamentals’ of business, as well as things like interest rates and the general investment climate at the time. A fundamentalist might take a look at the quarterly earnings of a company before deciding to buy some shares of said company.

A technical trader on the other hand looks strictly at charts, also known as graphs.  You have probably seen the charts before; with their lines or bars or ‘candlesticks’ spanning from left to right across the page, indicating the price patterns or movement of a given security over a given time period.

Trade Signals

Still, there is another way. Just as I might not attempt to fix my own car, or perform my own surgery, if I did not consider myself a pro, or at least very good at stock trading, I might want to rely a bit more on someone who knows more than I do; someone who might have more insight into which direction the market might be heading. I have seen and tested many of these companies over the past years, and in all honest can only give credence to one that has stood the test of time for me personally.

Doubling Stocks

Doubling Stocks is, of the many stock programs I have tried, the best one on the market today. I just can’t come to talking about the money that I earn, but I can tell you that the accuracy of this extremely reasonably priced program has far, far outweighed the cost. You can learn trading on your own, there is no doubt about this. But if you are looking to buy stock with the big boys, and make a good living from it, there is no better program than Doubling Stocks. With their 60 day money-back guarantee, and the fact that you can paper trade (not take the trades with real money) you have truly got nothing to lose, but a whole lot to gain.  It comes with my stamp of approval.