2025 Beginner's Stock Entry Guide: Learn to Buy Stocks from Scratch!

Want to step into the investment world but don’t know where to start? Watching others share their trading results online, do you also want to give it a try? Don’t worry, this comprehensive guide will walk you through overcoming the beginner’s hurdles and mastering the core points of stock trading courses!

Step 1: Choose the Right Broker to Lay a Solid Foundation for Your Investment Journey

Before entering the stock market, selecting a suitable trading platform is crucial. This is like choosing a reliable partner. There are many options on the market, from traditional established brokerages to emerging online platforms. But how do you find the one that truly fits you?

Four Key Indicators for Choosing a Broker:

🔍 Fee Comparison

• Taiwan stocks generally charge 0.1425% commission, some online platforms offer discounts for electronic orders
• For US stocks, pay attention to minimum fee restrictions (some platforms charge a fixed USD fee per trade, which can be burdensome for small investors)
• It’s recommended to compare multiple brokers to find the best deal

🔍 User Interface Experience

• Beginners should prioritize intuitive and easy-to-use apps; a clean design significantly lowers the learning curve
• Investors who frequently trade short-term need platforms that are fast and stable

🔍 Additional Platform Features

• Does it offer regular fixed investment mechanisms? (This is especially important for investors with limited funds)
• Are research reports or stock selection tools provided?

🔍 Localized Service Experience

• Does the trading interface support Chinese display? This is critical for users not comfortable with the language
• Is there a local customer service team? Human support can resolve time zone issues and avoid order placement troubles
• Can deposits and withdrawals be made directly in TWD? Supporting TWD wire transfers or linking local bank accounts can save currency exchange steps

💡 Helpful Tip: Most brokers offer trial accounts. It’s recommended to experience the operation process first before depositing real funds.

Taiwan Stocks vs US Stocks: Which to Choose?

Advantages and Disadvantages of Taiwan Stock Investment:

✅ Advantages:

• More familiar with local companies, easier to grasp industry trends
• Regulated by financial authorities with relatively strict oversight, market risk is more controllable

❌ Disadvantages:

• Limited market size, lower liquidity, large inflows or outflows may push stock prices up
• Some listed companies still lack transparency compared to international firms

Cost Overview for Taiwan Stock Investment:

Advantages and Disadvantages of US Stock Investment:

✅ Why consider US stocks?

• Wide selection, top global companies like Apple, Microsoft, Tesla are available
• Focus on innovative industries (AI, electric vehicles), huge long-term growth potential
• Relatively low costs, no securities transaction tax (台股 sells with 0.3%), suitable for small investors
• One ETF can invest in global markets, effectively diversifying risk
• Strict regulation, transparent financial reports, more symmetrical information

❌ Risks to watch out for:

• Many companies and industries, high research time cost
• Trading hours are 9:30 PM to 4:00 AM Taiwan time; staying updated requires late nights
• Currency exchange costs, converting TWD to USD involves exchange rate risk, profits may be eroded by rate fluctuations

💡 Beginner Tips: Start with well-known large companies (like Apple, Coca-Cola) for easier research. Long-term investors can adopt fixed investment strategies to average out exchange rate costs.

Cost Breakdown for US Stock Investment:

🎯 Path 1: Traditional Stock Trading

Via domestic or foreign brokerage accounts

• Domestic broker: commission 0.25~1%, exchange fee 0.0008%, activity fee based on shares traded
• Overseas broker: commission 0~0.1%, same exchange and activity fees

🎯 Path 2: CFD Trading

Via CFD platforms, no need to hold actual stocks, only trade price movements

• Cost components: spread cost + overnight interest
• Advantages: one account can trade US stocks, forex, precious metals, crude oil, and more
• Features: supports leverage trading, allowing control of larger positions with less capital

🎯 Path 3: US Stock ETF Investment

Via domestic or overseas brokers

• Management fee about 0.03~0.2%
• Trading fees similar to stocks, but brokers often have discounts
• Note: trading tax is only about 1/3 of stock tax

Tips to Save on US Stock Trading Fees:

💰 Standard discounts from major brokers Established brokers usually offer 6~6.5折 discounts, reputable with good service, but discount margins are limited

💰 Aggressive strategies by smaller brokers To attract clients, some small brokers cut fees to 2~3折, but watch out for fewer branches and system stability

💰 Exclusive perks for high-volume traders Monthly trading volume over a million USD can negotiate better discounts and additional services directly with account managers

Step 2: Account Opening and Practical Trading Guide

Account opening is actually very simple:

Most brokers have similar procedures. First, choose a reputable broker, prepare your ID documents and seal, then go to their office to apply. Staff will guide you through the process; just review the contract carefully and sign.

Good news: many brokers now offer online account opening, saving the trouble of visiting the office. You can complete the process via mobile or computer, very convenient.

Sample Order Placement:

Using a well-known international platform as an example, the order process is as follows:

Stock chart software demo:

• Hover mouse over a specific date (e.g., 2024/4/11)
• Top left shows open, close, high, low prices for that date
• For hourly charts, display price fluctuations within that hour

CFD Leverage Trading Steps:

Step 1: Complete account registration in 5 minutes on your phone (usually with a demo account included) Step 2: Verify identity before depositing funds Step 3: Search for target asset (e.g., input “TSLA” for Tesla) Step 4: Choose trading direction—“Buy” for bullish, “Sell” for bearish Step 5: Fill in order details, adjust leverage (beginners recommended 1~2x), then confirm

Leverage and Margin Table:

Summary of Pros and Cons of Different Stock Platforms:

🌟 Advantages of Traditional Stock Trading:

• High liquidity: large-cap stocks trade billions of shares daily, easy to buy/sell
• Strict regulation: SEC oversight, listed companies’ financials verified by auditors
• Transparent info: complete financial data, major news released promptly, information symmetry
• Suitable for long-term investment: can buy fractional shares, small investors can hold stocks and receive dividends

⚠ Disadvantages of Traditional Stock Trading:

• Hidden costs: although many platforms claim no commission, cross-border wire fees are high, exchange rate spreads add extra costs, funds are consumed before investing, and withdrawal fees apply when returning to Taiwan, plus potential tax issues
• Time restrictions: US stock trading hours are longer than Taiwan, but after-hours liquidity is low and prices can fluctuate wildly
• Minimum deposit thresholds: small investors may find it uneconomical

🌟 Advantages of CFD Contracts:

• Leverage flexibility: adjustable leverage, only a margin deposit needed to control large trades, high capital efficiency
• Bidirectional profit: profit from both rising and falling markets, no need to wait for bull markets
• Low entry barrier: starting with a few hundred yuan, saving initial capital compared to real stocks
• 24/7 trading: no closing hours, global markets available, quick entry/exit, suitable for short-term traders

⚠ Disadvantages of CFD Contracts:

• Leverage risk: amplifies both gains and losses, without stop-loss can lead to severe losses
• No dividends: since no actual stock is held, dividends are not received
• Platform choice must be cautious: only choose regulated platforms with FCA, ASIC, or similar certifications to ensure fund safety

🌟 Advantages of US Stock ETFs:

• Lower costs: trading tax only about 1/3 of individual stocks
• Lazy investment method: no need to pick stocks, one ETF includes dozens of top companies
• Risk diversification: small funds can still achieve diversified portfolios

⚠ Disadvantages of US Stock ETFs:

• Not suitable for high-frequency trading: frequent buy/sell eats into profits via fees
• Returns are relatively steady: due to holding many stocks, price swings are limited; high return seekers may find it less exciting

💡 Beginner Tips: Start with broad ETFs like “SPY (S&P 500)” or “VT (Global Market Index)”, combine with fixed investment plans, and optimize long-term costs.

Step 3: Quick Stock Basics

Trading Hours Overview:

Trading Units Explained:

• US stocks: Minimum 1 share, no “lot” or “board lot” restrictions, friendly for small investors
• Taiwan stocks: Usually traded in “1 lot = 1000 shares,” but also available as “odd lots” (less than 1000 shares)
• Hong Kong stocks: Minimum “1 lot,” with lot size varying by stock (often 20 or 100 shares)

Getting Started with Chart Software:

Many free tools are available online, from international platforms to local finance websites, all free and easy to use.

Key Price Data:

Tips for Chart Observation:

• Current price usually displayed prominently
• During trading hours, watch real-time price movements
• Trend charts reveal overall direction

Advanced Learning Path:

• Candlestick charts: understand price trends
• Moving averages: identify market direction
• MACD indicator: precise buy/sell signals
• Market analysis: insight into major players
• Financial statement analysis: assess company profitability

Step 4: Stock Selection Tips for Beginners

Four Easy Steps to Pick Stocks:

Step 1: Start with familiar industries “Buy stocks you understand!”
If you often use tech products, focus on semiconductor stocks; if you love beverages, look into food companies. Familiar industries make judgment easier and reduce blind following.

Step 2: Prioritize industry leaders Choose large-cap, well-known companies; industry leaders tend to be more stable and less prone to wild speculation.

Step 3: Assess fair valuation Use P/E ratio (stock price ÷ EPS) or dividend yield to estimate stock value, avoiding buying at high prices.

Step 4: Diversify your portfolio “Don’t put all eggs in one basket.” Mix value stocks and growth stocks to increase resilience against market changes.

Step 5: Common Pitfalls and How to Avoid Them

Want to start your stock course journey steadily? Remember these four key points:

📌 Be cautious with brokers Fees may seem small but can accumulate into significant differences! Good brokers are like quality teammates; choosing wisely is vital. When trading volume is high, actively negotiate fee discounts.

📌 Do your homework before placing orders Buying blindly without understanding the company is very risky. Recommended for beginners:

• ✔ Review basic info: industry type, main products
• ✔ Analyze financial health: EPS, gross margin, etc.
• ✔ Follow latest news: important announcements or earnings calls

Looking back at past markets, many investors rushed into industries that suddenly boomed without understanding, often getting caught at high points.

📌 Discipline in execution, stick to stop-loss and take-profit Set clear trading rules and follow them strictly. Example: Take partial profits at 20% gain, move stop-loss to lock in gains; cut losses at 10% loss, don’t hope for a rebound.

Common retail mistakes: taking profits too early, holding onto losses hoping for a turnaround.

📌 Find a trading style that suits you

• Day trading: requires daily monitoring, time-consuming
• Buy and hold: suitable for working professionals, stable cash flow
• Swing trading: combine technical analysis to catch turning points

Most importantly, find a comfortable rhythm and avoid impulsive trades based on others’ success stories.

💡 Words of Advice for Beginners:

• Practice with demo accounts for at least 3 months
• Keep initial capital small
• Record every trade in detail and review regularly

Start your investment journey now:

1️⃣ Complete account registration — fill in personal info and submit
2️⃣ Deposit trading funds — various methods for quick transfer
3️⃣ Look for trading opportunities — place real trades