The typical number of shares you can buy is whatever you decide it will be.
Typically, brokers prefer even/round numbers:
Buying/Selling 10, 25, 50, 75, 100 and multiples of 100. BUT, that doesn't or shouldn't restrict you from buying any number of shares you want. When you want to buy 26, 47, 61 or any other number of shares, by all means, do it.
You DO NOT "put ll your eggs in one basket" using all of the money in the trading account for one company's stock.
In fact, since it seems like you are just starting to learn about the stock market, here is some additional information for you:
Trading can be or is a very isolated and "hermit-like" way to live or exist.
It doesn't have to be that way. THE BEST suggestion I can offer:
Join a trading group, an investment group or investment club. BELIEVE ME, they can be wonderful experiences.
Like everything else, you get out of it what you put into it. For your own benefit and the overall benefit of the group or club, you must be active.
You should continue saving your hard-earned money AND at the same time, you learn about trading and the proper ways to invest.
You SHOULD stay away from "cheap"/inexpensive stocks. This includes "penny stocks" or "penny shares"; In brief, any stock less than $10. Those stocks are far too risky. It's better to invest the same amount of money in fewer shares of higher-priced stocks, instead of a whole lot of shares in the inexpensive stocks.
In the beginning, you should investigate the different investments you have available to you. Make THE BEST investment you can: Invest THE TIME to educate yourself. Do on-line searches; read books; enroll in investing and finance classes; seek out and use mentors and coaches; ask Qs about those investments which truly interest you: stocks, options, currencies, commodities, bonds, real estate, etc. Once you have that knowledge, no one can ever take it away from you.
In the beginning "newbie" traders & investors DO NOT INVEST any money. It probably won't be too long when you'll feel you're ready to invest your hard-earned money. Before taking that step, you really should do research about what you are investing in.
You should LEARN HOW:
A] the stock market works.
B] to invest in many, many various ways.
C] to properly trade
D] Properly manage the money in your trading account.
"Newbie" investors & traders ALWAYS make mistakes. In fact, throughout a person's trading hobby, avocation or career, he/she makes mistakes.
In the beginning, you READ & LEARN about the market & how it works: Read the very basic books about what the different investments are, how each investment works and learning how to trade that investment.
As you read & do research about the investments you are interested in, sometimes you'll come across a financial or investment term you never heard before. Use an on-line investing site or an investment dictionary.
There are also free sites where you can set up a virtual account & almost trade as though you were trading with real money. Since Google is providing the ads for this site, you can do a Google search for those. There are quite a few of them. You might want to try a few different virtual trading sites, THEN make your selection.
A SIMPLER WAY TO TRADE:
This is what I learned about the stock market and trading:
1] I read a little about the overall market and how it works. I read about different aspects: mutual funds, currency, commodities, stocks and options.
2] I asked Qs of my coaches and mentors; suggestions were made to me.
3] THEN I read and studied about those areas which interested me.
4] I concentrated on those areas which interested me and which fit the amount we had to work with.
5A] For those strategies I felt comfortable with, I developed trading rules. For those strategies I didn't know anything about, I developed some trading rules.
5B] I discovered I only needed trading rules for 4 to 8 trading strategies.
6] Using those rules, I paper traded.
7] When trades went against me - when I lost money - I adjusted or "tweaked" those rules for that strategy.
8] I paper traded - again and some more.
9] I made further adjustments.
10] I’ll admit I didn’t do enough research for the right broker for our trading needs, wants or desires. However, the one we decided to go with is OK – but not the greatest AND definitely not the least expensive. Yet, the actual trading account was opened:
As a speculator, with margin, with the approval to trade options.
11] Yes, it was VERY scary AND I was VERY apprehensive: BUT, I MADE THE BIG JUMP: Going "live" - in-the-market - with real money. I lost some money. NO ONE ever succeeds in each and every trade 100% of the time.
A] BUT I didn't use the entire amount of the account's money on one trade. I learned HOW TO properly manage the money in the account.
B] I lived to trade another day. AND I continue learning and living to trade other days.
C] AND YES, I STILL have a few losing trades. BUT my winning trades are A WHOLE LOT more than the losing trades.
Thanks for asking your Q! I enjoyed answering it!
VTY,
Ron Berue
Yes, that is my real last name!
Sources: My wonderful family!
My wonderful coaches and mentors!
TWO [2] of THE ABSOLUTE BEST, MOST wonderful trading groups in the world, which I am most proud to be a member of!
Trading stocks and options more than 2 years.
"THE University of Hard Knocks"
Comments
Thank you very much, that is very helpful :)
by Cyndi Ninja on March 6th, 2008
You're welcome.
by Anonymous on March 6th, 2008
Yeah, thank you very much!
by stockem on March 7th, 2008