How to Buy Stocks as a Beginner in 2025? Complete Beginner's Practical Guide

Looking at friends around you sharing investment insights and profit screenshots, do you also want to showcase your skills? Don’t worry, this latest 2025 stock investment guide will take you from zero to hero, step by step entering the world of investing!

Step 1: Find the right broker and open an account

How do you want to buy stocks? First, choose the right “teammate”—that is, select a broker!

When choosing a securities firm, make sure to consider these factors:

1️⃣ Transaction fees should be carefully calculated

• Taiwan stocks generally have a transaction fee of 0.1425%, many brokers offer discounts for electronic orders
• For US stocks, pay attention to minimum fees (some platforms charge a fixed fee per trade)
• Over the long term, differences in fees can add up to significant cost gaps

2️⃣ Is the trading interface user-friendly?

• Beginners are recommended to choose platforms with intuitive, simple operation
• Frequent short-term traders should select brokers with fast quote updates and stable systems

3️⃣ What about additional services?

• Do they offer regular investment plans (a must for working professionals)
• Are there free research reports or stock selection tools
• Is customer support comprehensive (including time zone friendliness)

4️⃣ Is deposit and withdrawal convenient?

• Supporting TWD wire transfers or directly linking Taiwanese bank accounts is most convenient
• Saves currency exchange steps, reducing trading costs

💡 Tip: After choosing a broker, try opening a demo account first. Confirm the operation is smooth before depositing funds and investing!

Step 2: Understand Taiwan stocks vs. US stocks

Guide to Taiwan Stock Investment

Advantages of Taiwan stocks: ✅ Familiar with local companies: easier to grasp industry trends of Taiwanese firms ✅ Stricter regulation: the Financial Supervisory Commission supervises more rigorously, reducing certain risks

Disadvantages of Taiwan stocks: ❌ Limited market size: lower liquidity, large capital inflows/outflows may impact stock prices ❌ Transparency needs improvement: some companies’ financial reports and corporate governance lag behind international standards

How to buy Taiwan stocks? Investment channels and costs:

US Stock Investment Guide

Why should beginners consider buying US stocks?

✅ More investment options - Apple, Microsoft, Tesla, and other top global companies ✅ Great growth potential - AI, electric vehicles, and innovative industries offer many opportunities ✅ Lower costs - Low transaction fees, no securities transaction tax, and ability to buy fractional shares ✅ Diversification - One ETF can invest across global markets ✅ Transparent information - Strict US regulations and comprehensive financial reporting

Risks to know before buying US stocks:

❌ Requires research time - Many US companies, industries differ from Taiwan ❌ Time zone issues - Trading hours are 9:30 PM to 4:00 AM Taiwan time ❌ Exchange rate risk - Fluctuations when converting TWD to USD may eat into profits

💡 Suggestion: Start with well-known large companies (Apple, Coca-Cola), use dollar-cost averaging to diversify exchange rate risk, and choose brokers with USD accounts to reduce currency conversion costs.

How to buy US stocks? Investment channels and fee comparison:

Step 3: Master stock basics

Essential stock terms

• Market order: Execute immediately at current market price
• Bid/Ask: Reflects buying and selling pressure
• Candlestick chart: Shows open, close, high, low prices
• PE ratio: Stock price divided by earnings per share, assesses valuation

Remember trading hours

• Taiwan stocks: Monday to Friday 9:00–13:30 (no lunch break, full-day trading)
• US stocks: Monday to Friday 9:30–16:00 (Taiwan time 21:30–4:00)

Differences in trading units

• US stocks: Can buy/sell in single shares, suitable for small investors
• Taiwan stocks: Usually traded in lots of 1000 shares (1 lot), also available in fractional shares
• Hong Kong stocks: Minimum unit is 1 lot, but lot sizes vary (20, 100 shares, etc.)

Free and good charting tools

TradingView, Investing.com, Goodinfo, and other free platforms are sufficient. Beginners should focus on:

• Current price: Latest transaction price
• Closing price: Yesterday’s last transaction
• Opening price: First transaction today
• High/Low: Price range today

Step 4: Tips for beginners choosing stocks

Follow these 4 tips to avoid pitfalls:

1️⃣ Start with familiar industries “Buy stocks you understand!” If you often buy electronics, consider semiconductor stocks; if you love beverages, look into food stocks. Familiar industries make judgment easier.

2️⃣ Prioritize large companies Big market cap and well-known companies are more stable. TSMC, Hon Hai are industry leaders with lower risk compared to small caps, less prone to hype.

3️⃣ Calculate if the price is reasonable Use PE ratio (price/EPS) or dividend yield to evaluate fair value, avoid buying at high prices.

4️⃣ Diversify your portfolio “Don’t put all eggs in one basket!” Mix dividend stocks and growth stocks to increase chances of profit regardless of market changes.

Step 5: Common pitfalls to avoid as a beginner

1️⃣ Don’t be sloppy in choosing brokers Fees matter over time! Find a reliable broker, and when trading volume is high, negotiate discounts.

2️⃣ Do thorough homework before buying Buying without understanding the main business? High risk! Essential research includes:

• ✔ Check basic info: industry, main products
• ✔ Review financials: EPS, gross margin, etc.
• ✔ Follow news: any major events

Remember when shipping stocks soared, many jumped in without understanding container giants, ending up trapped at high points.

3️⃣ Strictly follow stop-loss and take-profit rules Discipline is key. Set plans and stick to them:

• Take profit at 20% gain, consider selling half
• Stop loss at over 10% loss immediately
• Don’t expect automatic rebounds

“Many retail investors lose money because: they take small profits and run, but hold on to big losses!”

4️⃣ Find a trading style that suits you

• Day trading: suitable if you can monitor the market daily
• Dividend investing: good for busy professionals
• Swing trading: for those wanting to catch turning points

Most importantly, find your comfortable rhythm. Don’t blindly follow others’ profits.

3 simple steps to start investing

1. Prepare — choose a broker, complete account verification 2. Deposit — quickly fund your account via various methods 3. Trade — spot opportunities, start buying and selling

💡 Advice for beginners:

• Practice with a demo account for 3 months
• Keep initial capital small
• Take notes on each trade
• Don’t jump into unfamiliar technicals; build a solid foundation first

Key points summary: How to buy stocks isn’t complicated—pick a good broker, understand the differences between Taiwan and US stocks, master basic knowledge, do your homework, and stick to discipline. These 5 steps will start your investment journey. Begin building your investment habits in 2025!