How to start investing in US stocks: Best beginner’s guide
Table of Contents
Introduction: How to start investing in US stocks
Are you an Indian investor who wants to diversify your portfolio and tap into the world’s largest and most influential stock market? If yes, then you might be interested in learning how to start investing in US stocks. Investing in US stocks can offer you a number of benefits, such as:
Diversification: By investing in US stocks, you can reduce your exposure to the risks and uncertainties of the Indian stock market, and benefit from the growth and innovation of different sectors and industries in the US market.
Growth: The US stock market has a long history of delivering strong and consistent returns, outperforming many other markets in the world. The US stock market is also home to some of the largest and most successful companies in the world, such as Apple, Microsoft, Amazon, and Tesla, which have created enormous wealth for their shareholders.
Innovation: The US stock market is also a hub of innovation and disruption, with many new and emerging companies that are changing the world with their products and services, such as Facebook, Google, Netflix, and Uber. By investing in US stocks, you can gain exposure to these cutting-edge technologies and trends, and potentially capture their future growth potential.
However, investing in US stocks also involves some challenges and risks, such as:
Taxation: As a foreign investor, you might have to pay taxes on your capital gains and dividends in both India and the US, depending on the tax treaty between the two countries. You might also have to deal with complex and changing tax laws and regulations in both countries, and file the necessary forms and documents to report your income and taxes.
Currency conversion: As an Indian investor, you might have to convert your rupees to dollars, and vice versa, to buy and sell US stocks. This can expose you to the fluctuations in the exchange rate between the two currencies, which can affect your returns and costs. You might also have to pay fees and commissions for the currency conversion, which can reduce your profits.
Regulatory environment: As a foreign investor, you might have to comply with the rules and regulations of the US stock market, which can be different and more stringent than the Indian stock market. For example, you might have to follow the trading hours, settlement process, disclosure norms, and listing requirements of the US stock market, which can vary from the Indian stock market.
Therefore, you need to understand the key terms and concepts related to investing in US stocks, such as:
Brokerage account: A brokerage account is an account that allows you to buy and sell stocks and other securities through a broker or a platform. You need a brokerage account to invest in US stocks, as you cannot directly buy and sell US stocks from the Indian stock market.
Trading platform: A trading platform is a software or an application that allows you to access the US stock market, and execute your trades. A trading platform can provide you with various features and functions, such as market data, charts, news, analysis, orders, etc.
Stock exchange: A stock exchange is a marketplace where stocks and other securities are traded. The US stock market consists of several stock exchanges, such as the New York Stock Exchange (NYSE), the Nasdaq Stock Market (Nasdaq), and the American Stock Exchange (AMEX). These exchanges list thousands of companies from various sectors and industries, both domestic and foreign.
Index: An index is a measure of the performance of a segment or a strategy of the stock market. An index consists of a basket of stocks that represent a particular sector, industry, size, style, etc. Some of the most popular and widely followed indices in the US stock market are the S&P 500, the Dow Jones Industrial Average, the Nasdaq Composite, and the Russell 2000.
ETF: An ETF, or an exchange-traded fund, is a type of security that tracks the performance of an index, a sector, a commodity, or a basket of assets. An ETF can be traded like a stock on a stock exchange, and can offer a low-cost and convenient way to invest in a diversified portfolio of US stocks.
In this article, we will provide you with a step-by-step guide on how to start investing in US stocks, covering the following topics:
How to choose a brokerage account that suits your needs and preferences
How to fund your account and convert your currency from rupees to dollars
How to choose a trading platform and learn the basics of trading US stocks
How to research and select your US stocks, based on your investment objectives, risk tolerance, and time horizon
How to place your orders and monitor your portfolio, using your trading platform
By the end of this article, you will have a better understanding of how to start investing in US stocks, and be ready to take your first steps in the world’s largest and most influential stock market. However, please note that this article is for informational purposes only, and should not be considered as financial advice or recommendation. You should always do your own research and consult a professional financial advisor before making any investment decisions.
Step 1: Choose a Brokerage Account
The first step to start investing in US stocks is to choose a brokerage account that suits your needs and preferences. A brokerage account is an account that allows you to buy and sell stocks and other securities through a broker or a platform. You need a brokerage account to invest in US stocks, as you cannot directly buy and sell US stocks from the Indian stock market.
There are different types of brokerage accounts available for Indian investors, such as Indian brokers, foreign brokers, and online platforms. Each type of brokerage account has its own advantages and disadvantages, depending on various factors, such as fees, commissions, services, security, etc. Let’s compare them briefly:
Indian brokers: These are brokers that are based in India and are registered with SEBI and the Indian stock exchanges. They allow you to invest in US stocks through their tie-ups with foreign brokers or platforms. Some examples of Indian brokers that offer US stock trading are ICICI Direct, Kotak Securities, HDFC Securities, Axis Direct, etc. The main advantage of Indian brokers is that they are familiar and convenient for Indian investors, as they provide local customer support, accept rupee deposits, and follow Indian regulations. The main disadvantage of Indian brokers is that they may charge higher fees and commissions, have limited investment options, and involve currency conversion and taxation issues.
Foreign brokers: These are brokers that are based in the US or other countries and are registered with the SEC and the US stock exchanges. They allow you to invest in US stocks directly through their platforms or apps. Some examples of foreign brokers that accept Indian investors are Interactive Brokers, TD Ameritrade, Charles Schwab, etc. The main advantage of foreign brokers is that they offer lower fees and commissions, have a wider range of investment options, and provide access to advanced trading tools and features. The main disadvantage of foreign brokers is that they may require higher account minimums, have complex account opening procedures, and involve currency conversion and taxation issues.
Online platforms: These are platforms or apps that act as intermediaries between Indian investors and foreign brokers or platforms. They allow you to invest in US stocks through their partnerships with foreign brokers or platforms. Some examples of online platforms that offer US stock trading are Vested, Stockal, Winvesta, etc. The main advantage of online platforms is that they offer low or zero fees and commissions, have simple and easy account opening procedures, and provide curated investment options and recommendations. The main disadvantage of online platforms is that they may have limited customer support, have restricted trading hours, and involve currency conversion and taxation issues.
To choose the best brokerage account for you, you should consider the following factors:
Fees and commissions: These are the charges that you have to pay to the broker or the platform for their services. They may include account opening fees, annual maintenance fees, trading fees, withdrawal fees, etc. You should compare the fees and commissions of different brokers and platforms and choose the one that offers the best value for your money.
Services and features: These are the benefits and facilities that the broker or the platform provides to you. They may include customer support, trading platforms, research and analysis, educational resources, etc. You should evaluate the services and features of different brokers and platforms and choose the one that meets your needs and expectations.
Security and reliability: These are the aspects that ensure the safety and stability of your account and your transactions. They may include encryption, verification, regulation, insurance, etc. You should verify the security and reliability of different brokers and platforms and choose the one that has a good reputation and track record.
Based on our research and experience, we recommend some of the best brokerage accounts for Indian investors, as follows:
Best Overall: ICICI Direct. ICICI Direct is one of the largest and most popular Indian brokers that offers US stock trading through its tie-up with Saxo Bank, a leading foreign broker. ICICI Direct charges a flat brokerage fee of 0.5% of the transaction value, with a minimum of $3 per trade. It also charges an annual maintenance fee of Rs. 700. ICICI Direct provides a user-friendly interface, local customer support, and a wide range of investment options. You can open an account with ICICI Direct with a minimum of Rs. 10,000
Best for Beginners: Vested. Vested is an online platform that offers US stock trading through its partnership with Drive Wealth, a US-based broker. Vested charges zero brokerage fees and commissions for unlimited trades. It also charges a one-time account opening fee of Rs. 999 and an annual maintenance fee of Rs. 999. Vested provides a simple and easy account opening process, curated investment options and recommendations, and fractional share investing. You can open an account with Vested with a minimum of $1
Best for Day Traders: Zerodha. Zerodha is one of the leading and most innovative Indian brokers that offers US stock trading through its tie-up with Stockal, an online platform. Zerodha charges a flat brokerage fee of $1 per trade, with no annual maintenance fees. It also charges a currency conversion fee of 0.5% of the transaction value. Zerodha provides a fast and reliable trading platform, advanced trading tools and features, and low-cost trading. You can open an account with Zerodha with a minimum of Rs. 200
Best for Versatility: Interactive Brokers. Interactive Brokers is one of the most renowned and respected foreign brokers that accepts Indian investors. Interactive Brokers charges a variable brokerage fee based on the monthly trading volume, with a minimum of $0.35 per trade. It also charges a monthly activity fee of $10, which is waived if the account balance is more than $100,000 or the monthly trading commissions are more than $10. Interactive Brokers provides access to over 120 markets in 31 countries and 23 currencies, a state-of-the-art trading platform, and a wide range of investment options. You can open an account with Interactive Brokers with a minimum of $10,000
Step 2: Fund Your Account and Convert Your Currency
The second step to start investing in US stocks is to fund your account and convert your currency from rupees to dollars. You need to have sufficient funds in your brokerage account to buy and sell US stocks, and you need to convert your currency to match the currency of the US stock market.
There are different methods and platforms available for funding your account and converting your currency, such as banks, brokers, online services, etc. Each method and platform has its own advantages and disadvantages, depending on various factors, such as exchange rate, fees, taxes, speed, convenience, etc. Let’s compare them briefly:
Banks: Banks are the traditional and most common way of funding your account and converting your currency. You can use your bank account to transfer money to your brokerage account, and use your bank’s foreign exchange service to convert your currency. The main advantage of banks is that they are familiar and secure, and you can use your existing bank account and debit or credit card. The main disadvantage of banks is that they may offer unfavorable exchange rates, charge high fees and commissions, and take longer to process your transactions.
Brokers: Brokers are the intermediaries that facilitate your trading activities. You can use your broker’s platform or app to fund your account and convert your currency. The main advantage of brokers is that they may offer better exchange rates, lower fees and commissions, and faster and more convenient transactions. The main disadvantage of brokers is that they may have limited customer support, restricted trading hours, and involve currency conversion and taxation issues.
Online services: Online services are the new and innovative way of funding your account and converting your currency. You can use online platforms or apps that specialize in money transfer and currency exchange, such as Wise, PayPal, TransferWise, etc. The main advantage of online services is that they may offer the best exchange rates, the lowest fees and commissions, and the quickest and easiest transactions. The main disadvantage of online services is that they may require you to open a separate account, verify your identity, and link your bank account or card.
To choose the best method and platform for funding your account and converting your currency, you should consider the following factors:
Exchange rate: The exchange rate is the rate at which one currency can be converted into another. It is determined by various factors, such as supply and demand, interest rates, inflation, etc. You should compare the exchange rates offered by different methods and platforms and choose the one that offers the most favorable rate for your currency pair.
Fees and commissions: These are the charges that you have to pay to the method or platform for their services. They may include transfer fees, conversion fees, withdrawal fees, etc. You should compare the fees and commissions charged by different methods and platforms and choose the one that offers the lowest cost for your transaction amount.
Taxes: These are the taxes that you have to pay to the government for your transactions. They may include capital gains tax, dividend tax, withholding tax, etc. You should check the tax implications of your transactions and choose the method or platform that offers the most tax-efficient solution for your situation.
Speed: This is the time that it takes for your transactions to be completed. It may depend on the method or platform, the currency pair, the transaction amount, the time of the day, etc. You should check the speed of your transactions and choose the method or platform that offers the fastest delivery for your urgency.
Convenience: This is the ease and comfort that you experience when using the method or platform. It may depend on the method or platform, the user interface, the customer support, the availability, etc. You should check the convenience of your transactions and choose the method or platform that offers the most user-friendly and accessible solution for your preference.
Based on our research and experience, we recommend some of the best methods and platforms for funding your account and converting your currency, as follows:
Best Overall: Wise. Wise is an online platform that offers money transfer and currency exchange services. Wise charges a transparent and low fee based on the mid-market exchange rate, which is the real exchange rate that you see on Google or Reuters. Wise also offers fast and secure transactions, with most transfers completed within one or two business days. You can open an account with Wise for free and link your bank account or card
Best for Speed: PayPal. PayPal is an online platform that offers money transfer and currency exchange services. PayPal charges a variable fee based on the exchange rate, which is usually higher than the mid-market rate. However, PayPal also offers instant and convenient transactions, with most transfers completed within minutes. You can open an account with PayPal for free and link your bank account or card
Best for Cost: TransferWise. TransferWise is an online platform that offers money transfer and currency exchange services. TransferWise charges a low and fixed fee based on the mid-market exchange rate, which is the same as Wise. TransferWise also offers fast and secure transactions, with most transfers completed within one or two business days. You can open an account with TransferWise for free and link your bank account or card
Step 3: Choose a Trading Platform and Learn the Basics
The third step to start investing in US stocks is to choose a trading platform and learn the basics of trading US stocks. A trading platform is a software or an application that allows you to access the US stock market and execute your trades. A trading platform can provide you with various features and functions, such as market data, charts, news, analysis, orders, etc.
There are different types of trading platforms available for Indian investors, such as web-based, desktop, mobile, etc. Each type of trading platform has its own advantages and disadvantages, depending on various factors, such as user interface, speed, reliability, customization, etc. Let’s compare them briefly:
Web-based trading platforms: These are platforms that can be accessed via web browsers, such as Google Chrome or Firefox. You do not need to download or install anything on your computer or device. The main advantage of web-based platforms is that they are flexible and convenient, as you can access them from anywhere and any device. The main disadvantage of web-based platforms is that they may have lower performance and security, as they depend on your internet connection and browser settings.
Desktop trading platforms: These are platforms that can be downloaded and installed on your computer or laptop. You need to have a compatible operating system and sufficient memory and storage space. The main advantage of desktop platforms is that they are fast and stable, as they run on your own hardware and software. The main disadvantage of desktop platforms is that they are less portable and accessible, as you can only use them on your own computer or laptop.
Mobile trading platforms: These are platforms that can be downloaded and installed on your smartphone or tablet. You need to have a compatible device and operating system. The main advantage of mobile platforms is that they are portable and accessible, as you can use them on the go and from any location. The main disadvantage of mobile platforms is that they may have limited features and functions, as they have to fit on a smaller screen and use less battery and data.
To choose the best trading platform for you, you should consider the following factors:
User interface: This is the design and layout of the platform, and how easy and intuitive it is to use. You should look for a platform that has a clear and simple interface, with all the necessary tools and functions at your fingertips. You should also look for a platform that allows you to customize your settings, preferences, and appearance, such as colors, fonts, themes, etc.
Speed: This is the time that it takes for the platform to load and update the market data, charts, news, etc. You should look for a platform that has a fast and smooth performance, with minimal delays and glitches. You should also look for a platform that has a reliable and secure connection, with encryption and verification features.
Reliability: This is the quality and consistency of the platform, and how often it crashes or malfunctions. You should look for a platform that has a high and stable reliability, with few or no errors and bugs. You should also look for a platform that has a good and responsive customer support, with help and feedback options.
Customization: This is the degree and extent of the platform’s adaptability and flexibility, and how well it suits your trading style and needs. You should look for a platform that has a high and varied customization, with multiple options and features to choose from. You should also look for a platform that has a wide and diverse range of investment options, such as stocks, ETFs, indices, etc.
Based on our research and experience, we recommend some of the best trading platforms for Indian investors, as follows:
Best Overall: Zerodha Kite. Zerodha Kite is a web-based trading platform that can also be accessed via mobile app. Zerodha Kite offers a user-friendly and customizable interface, with powerful and advanced features, such as real-time streaming quotes, interactive charts, live news feeds, educational resources, and access to proprietary research. Zerodha Kite also offers low or zero brokerage fees, and a wide range of investment options, such as stocks, ETFs, index funds, and mutual funds. You can open an account with Zerodha Kite with a minimum of Rs. 200
Best for Beginners: Upstox Pro. Upstox Pro is a web-based trading platform that can also be accessed via mobile app. Upstox Pro offers a simple and easy interface, with essential and basic features, such as market data, charts, news, analysis, and orders. Upstox Pro also offers zero brokerage fees and commissions for unlimited trades. Upstox Pro also offers curated and recommended investment options and strategies, and fractional share investing. You can open an account with Upstox Pro with a minimum of $1
Best for Day Traders: Interactive Brokers. Interactive Brokers is a desktop trading platform that can also be accessed via web or mobile app. Interactive Brokers offers a fast and reliable performance, with minimal delays and glitches. Interactive Brokers also offers a state-of-the-art trading platform, with access to over 120 markets in 31 countries and 23 currencies, and a wide range of investment options, such as stocks, ETFs, options, futures, forex, etc. Interactive Brokers also offers low and variable brokerage fees, based on the monthly trading volume. You can open an account with Interactive Brokers with a minimum of $10,0003
Once you have chosen your trading platform, you should learn the basics of trading US stocks, such as terminology, rules, regulations, etc. Here are some tips and resources to help you:
Listen to podcasts and watch videos: There are many podcasts and videos that can provide you with insights and tips on trading US stocks, such as “The Investors Podcast”, “We Study Billionaires”, “Chat With Traders”, “The Stock Trading Reality Podcast”, etc. You can also watch online videos and webinars, such as YouTube, TradingView, Udemy, etc
Follow successful investors and traders: There are many successful investors and traders that can inspire and guide you on trading US stocks, such as Warren Buffett, Ray Dalio, George Soros, Paul Tudor Jones, etc. You can follow their portfolios, newsletters, interviews, tweets, etc. You can also follow online communities and forums, such as Reddit, Quora, StockTwits, etc1617
Practice with a simulator or a paper trading account: There are many simulators or paper trading accounts that can help you practice and test your trading skills and strategies, without risking real money. You can use online platforms or apps, such as Investopedia Stock Simulator, TradingView Paper Trading, MarketWatch Virtual Stock Exchange, etc. You can also use your own trading platform, if it offers a demo or a practice mode.
Step 4: Research and Select Your US Stocks
The fourth step to start investing in US stocks is to research and select your US stocks, based on your investment objectives, risk tolerance, and time horizon. Researching and selecting US stocks involves gathering and analyzing information about the company’s financial performance, competitive position, growth prospects, and valuation. Selecting US stocks involves comparing and choosing the stocks that best fit your portfolio and your investor profile.
There are different sources and tools available for researching US stocks, such as websites, blogs, podcasts, newsletters, etc. Each source and tool has its own advantages and disadvantages, depending on various factors, such as reliability, accuracy, timeliness, depth, etc. Let’s compare them briefly:
Websites: Websites are online platforms that provide information and data on US stocks, such as market data, financial statements, analyst ratings, news, etc. Some examples of websites that offer US stock research are Yahoo Finance, Google Finance, MarketWatch, etc. The main advantage of websites is that they are easy and convenient to access, and offer a lot of information and data for free. The main disadvantage of websites is that they may have outdated or inaccurate information and data, and may not offer enough analysis or insight.
Blogs: Blogs are online journals or articles that provide opinions and commentary on US stocks, such as trends, strategies, recommendations, etc. Some examples of blogs that offer US stock research are The Motley Fool, Seeking Alpha, Zacks, etc. The main advantage of blogs is that they offer a personal and informal perspective on US stocks, and may offer unique and original ideas or insights. The main disadvantage of blogs is that they may be biased or subjective, and may not be based on facts or evidence.
Podcasts: Podcasts are audio or video programs that provide information and discussion on US stocks, such as interviews, analysis, reviews, etc. Some examples of podcasts that offer US stock research are The Investors Podcast, We Study Billionaires, Chat With Traders, etc. The main advantage of podcasts is that they offer a lively and engaging way to learn about US stocks, and may feature experts or guests who share their knowledge and experience. The main disadvantage of podcasts is that they may be long or boring, and may not provide enough details or data.
Newsletters: Newsletters are email or print publications that provide information and advice on US stocks, such as market updates, stock picks, portfolio reviews, etc. Some examples of newsletters that offer US stock research are The Wall Street Journal, Barron’s, Morningstar, etc. The main advantage of newsletters is that they offer a professional and authoritative source of information and advice on US stocks, and may offer exclusive or premium content. The main disadvantage of newsletters is that they may charge a fee or subscription, and may not be timely or relevant.
To choose the best sources and tools for researching US stocks, you should consider the following factors:
Reliability: This is the degree and extent to which the source or tool provides accurate and trustworthy information and data on US stocks. You should look for sources and tools that have a good reputation and track record, and that cite their sources and methods.
Accuracy: This is the quality and precision of the information and data provided by the source or tool on US stocks. You should look for sources and tools that provide up-to-date and verified information and data, and that correct their errors and mistakes.
Timeliness: This is the speed and frequency with which the source or tool provides information and data on US stocks. You should look for sources and tools that provide real-time and regular information and data, and that keep up with the market changes and events.
Depth: This is the amount and detail of the information and data provided by the source or tool on US stocks. You should look for sources and tools that provide comprehensive and thorough information and data, and that cover various aspects and dimensions of US stocks.
Insight: This is the value and usefulness of the information and data provided by the source or tool on US stocks. You should look for sources and tools that provide relevant and actionable information and data, and that offer analysis and guidance on US stocks.
Based on our research and experience, we recommend some of the best sources and tools for researching US stocks, as follows:
Best Overall: Yahoo Finance. Yahoo Finance is a website that offers a wealth of information and data on US stocks, such as market data, financial statements, analyst ratings, news, etc. Yahoo Finance also offers a user-friendly and customizable interface, with features such as watchlists, portfolios, alerts, screener, etc. Yahoo Finance also offers free and premium content, such as articles, videos, podcasts, newsletters, etc. You can access Yahoo Finance for free from any device and browser
Best for Beginners: The Motley Fool. The Motley Fool is a blog that offers opinions and commentary on US stocks, such as trends, strategies, recommendations, etc. The Motley Fool also offers a personal and informal perspective on US stocks, and may offer unique and original ideas or insights. The Motley Fool also offers free and premium content, such as articles, podcasts, newsletters, etc. You can access The Motley Fool for free or for a fee, depending on the content you want2
Best for Day Traders: TradingView. TradingView is a website that offers information and data on US stocks, such as market data, charts, news, etc. TradingView also offers a fast and reliable performance, with real-time and interactive charts, indicators, tools, etc. TradingView also offers a social and collaborative platform, with features such as chat, ideas, scripts, etc. You can access TradingView for free or for a fee, depending on the features you want
Once you have researched US stocks, you should select the ones that best fit your portfolio and your investor profile. To do so, you should use criteria and metrics to evaluate US stocks, such as fundamentals, technical, valuation, etc. Here are some tips and examples to help you:
By using these criteria and metrics, you can compare and choose the US stocks that suit your investor profile and preferences, such as growth, value, dividend, etc. For example, if you are a growth investor, you may prefer US stocks that have high earnings growth rates, high return on equity, high profit margins, and low dividend yields, such as Netflix, Facebook, or Shopify.
If you are a value investor, you may prefer US stocks that have low price-to-earnings ratios, low price-to-sales ratios, and high dividend yields, such as AT&T, Exxon Mobil, or Walmart. If you are a dividend investor, you may prefer US stocks that have high and stable dividend payouts, high dividend growth rates, and low payout ratios, such as Johnson & Johnson, Procter & Gamble, or Coca-Cola.
Step 5: Place Your Orders and Monitor Your Portfolio
The fifth and final step to start investing in US stocks is to place your orders and monitor your portfolio. Placing your orders involves sending instructions to your broker or trading platform to buy or sell US stocks at certain prices or conditions. Monitoring your portfolio involves tracking the performance, value, and risk of your US stock investments over time.
There are different types of orders that you can use to buy or sell US stocks, depending on your goals and preferences. Some of the most common types of orders are:
Market order: This is an order to buy or sell a stock at the current market price. A market order is executed as soon as possible, but the price is not guaranteed. A market order is suitable when you want to execute your trade quickly and are not concerned about minor price fluctuations.
Limit order: This is an order to buy or sell a stock at a specific price or better. A limit order is only executed if the market price reaches or surpasses the limit price. A limit order is suitable when you want to control the price of your trade and are willing to wait for the market to reach your desired level.
Stop order: This is an order to buy or sell a stock when it reaches a certain price, known as the stop price. A stop order becomes a market order once the stop price is triggered. A stop order is suitable when you want to protect your profits or limit your losses in case of adverse market movements.
Stop-limit order: This is a combination of a stop order and a limit order. A stop-limit order becomes a limit order once the stop price is triggered. A stop-limit order is suitable when you want to control the price of your trade and avoid slippage, but it also carries the risk of not being filled if the market price moves beyond the limit price.
To place an order, you need to specify the following information:
The stock symbol: This is the unique identifier of the stock, such as AAPL for Apple or MSFT for Microsoft.
The order type: This is the type of order you want to use, such as market, limit, stop, or stop-limit.
The order size: This is the number of shares you want to buy or sell.
The order duration: This is the length of time your order remains active in the market. The most common durations are day and good-till-canceled (GTC). A day order expires at the end of the trading day, while a GTC order remains active until you cancel it or it is filled.
The order condition: This is an optional feature that allows you to attach additional requirements or restrictions to your order. For example, you can use an all-or-none (AON) condition to specify that your order must be filled entirely or not at all, or a fill-or-kill (FOK) condition to specify that your order must be filled immediately and completely or canceled.
Depending on your broker or trading platform, you may have access to other types of orders and conditions, such as trailing stop, one-cancels-the-other (OCO), or one-triggers-the-other (OTO). You should familiarize yourself with the different order options and how they work before using them.
To monitor your portfolio, you need to use tools and techniques that help you track the performance, value, and risk of your US stock investments over time. Some of the tools and techniques you can use are:
Portfolio tracker: This is a software or an application that allows you to access and manage your US stock portfolio from one place. A portfolio tracker can provide you with various features and functions, such as market data, charts, news, analysis, orders, alerts, etc. A portfolio tracker can also help you measure your portfolio’s performance against a benchmark, such as an index or a fund, and your portfolio’s risk level and diversification. Some examples of portfolio trackers are Empower (formerly Personal Capital), Sharesight, and Yahoo Finance
Portfolio rebalancing: This is a technique that involves adjusting your portfolio’s asset allocation to match your original or desired target allocation. Portfolio rebalancing can help you maintain your portfolio’s risk and return profile and avoid drift or deviation from your investment goals. Portfolio rebalancing can be done periodically, such as quarterly or annually, or based on a threshold, such as when your portfolio’s allocation deviates by a certain percentage from your target allocation. Portfolio rebalancing can involve selling some of your overperforming assets and buying some of your underperforming assets, or adding new funds to your portfolio and allocating them according to your target allocation.
Portfolio review: This is a process that involves evaluating your portfolio’s performance, value, and risk over a certain period of time, such as a month, a quarter, or a year. Portfolio review can help you assess your portfolio’s progress and performance, identify your portfolio’s strengths and weaknesses, and make necessary adjustments or improvements to your portfolio. Portfolio review can involve comparing your portfolio’s returns, volatility, and drawdowns to your expectations, benchmarks, and peers, analyzing your portfolio’s asset allocation, diversification, and fees, and setting new goals or strategies for your portfolio.
By placing your orders and monitoring your portfolio, you can start investing in US stocks and achieve your financial objectives. Remember to always do your research, plan your strategies, and stay educated.
Conclusion
In this article, we have provided you with a step-by-step guide on how to start investing in US stocks, covering the following topics:
How to choose a brokerage account that suits your needs and preferences
How to fund your account and convert your currency from rupees to dollars
How to choose a trading platform and learn the basics of trading US stocks
How to research and select your US stocks, based on your investment objectives, risk tolerance, and time horizon
How to place your orders and monitor your portfolio, using your trading platform
By following this guide, you can start investing in US stocks and benefit from the growth and innovation of the world’s largest and most influential stock market. You can also diversify your portfolio and reduce your overall risk and volatility. However, you also need to be aware of the challenges and risks of investing in US stocks, such as taxation, currency conversion, and regulatory environment.
We hope that this article has helped you to gain a better understanding of how to start investing in US stocks, and be ready to take your first steps in the world of US stock trading. However, please note that this article is for informational purposes only, and should not be considered as financial advice or recommendation. You should always do your own research and consult a professional financial advisor before making any investment decisions. Thank you for reading and happy investing!
