So you’ve set up your brokerage account, maybe put some money in it, and now you’re staring at the screen wondering: “Okay… now what?”
You’re not alone. Making your first trade as a beginner can feel intimidating—like jumping off the diving board for the first time. But don’t worry: this guide walks you through it step by step, minus the jargon, minus the stress.
Let’s get you from “thinking about trading” to actually placing that first order—with confidence.
Why Making Your First Trade Feels Like a Big Deal
When I made my first trade, I checked it about 10 times before hitting the “Buy” button. I kept thinking I was doing something wrong. I mean, this was real money. What if I messed it up? What if the stock tanked? What if I accidentally bought 100 shares instead of 1?
Here’s the truth: your first trade doesn’t have to be perfect—it just has to happen. The best way to learn is by doing. You’ll make smarter trades in the future by getting over that first hurdle today.
Step 1: Pick a Brokerage That’s Beginner-Friendly
Choose a platform that feels easy to use
If you haven’t already signed up for a brokerage account, that’s your first step. For beginners, the best platforms offer:
- No account minimums
- Commission-free trades
- A clean, easy-to-use app or website
- Access to fractional shares
Some beginner-friendly options include:
- Fidelity
- Charles Schwab
- Robinhood
- Webull
- Public
- SoFi Invest
I personally started with Robinhood because it felt like using a social media app. It wasn’t perfect, but it got me in the game—and that mattered more than anything else.
Step 2: Fund Your Account
Connect your bank and transfer cash
Once your account is set up, it’s time to fund it. This usually involves:
- Linking your bank account
- Verifying small test deposits
- Transferring the amount you want to invest
- Pro Tip: Start small. Even $50–$100 is enough to get started thanks to fractional shares.
- Some platforms (like Robinhood or Webull) let you trade immediately with pending funds, so you don’t have to wait days for your transfer to clear.
Step 3: Choose a Stock (or ETF) to Buy
Not sure what to buy? Keep it simple.
If you’re wondering how to make your first trade as a beginner, don’t worry about finding the “perfect” stock. Instead, ask yourself:
- What brands do I love and use often?
- Is there a company I believe in long-term?
- Do I want to start with something less risky?
You can buy:
- Individual stocks (like Apple, Disney, or Nike)
- ETFs (exchange-traded funds that hold a basket of stocks, like the S&P 500)
- Example: My very first trade was $100 into the VOO ETF, which tracks the S&P 500. Boring? Maybe. Smart? Absolutely.
- ETFs are great for beginners because they’re diversified, meaning you’re not betting on just one company.
Step 4: Look Up the Stock and Get Familiar
Search for your stock or ETF within the brokerage app. You’ll see:
- The current price
- A basic chart
- Some stats like market cap and P/E ratio
- A “Buy” or “Trade” button
- Take a few minutes to understand what the company does. You don’t need to read an earnings report—just know what you’re buying.
Step 5: Decide How Many Shares (or Dollars) to Buy
Use fractional shares if you’re starting small
Let’s say a single share of Amazon is $3,000. That’s a lot for one stock. But many platforms let you buy a fraction of a share, so you could invest just $10 or $50.
If you’re starting with a small amount, this makes trading way more accessible.
Fractional Tip: You can usually enter a dollar amount instead of the number of shares. For example, “Buy $20 of Apple.”
Step 6: Choose an Order Type
This is where beginners tend to get stuck. But don’t worry, there are just two basic order types you need to know:
Market Order
This buys the stock immediately at the best available price. Simple and fast.
Limit Order
This buys the stock only if it hits a specific price you choose. It gives you more control, but it may not execute right away.
For your first trade? Just go with a market order. You want to experience placing the trade without overthinking it.
Step 7: Place the Order and… Breathe
You’ll usually see a summary screen like:
- You’re buying: 0.5 shares of Apple
- At a market price of: $175
- Estimated cost: $87.50
- Double-check everything. If it looks good, hit “Buy” or “Submit Order.”
- Boom—you just made your first trade. 🎉
Step 8: Track It, But Don’t Obsess
After your trade goes through, your brokerage will show your new position—how many shares you own, your total cost, and your current gain or loss.
BUT—don’t check it every 5 minutes. Stocks move up and down all the time. What matters is the long game.
Check in once a day or even once a week
Your first trade is about learning, not day trading. Watch how your investment behaves, read a bit about the company or ETF, and think about your next move.
Bonus Step: Set a Plan for What’s Next
Now that you’ve made your first trade, you’ll want to think about:
- Do you want to buy more of the same stock?
- Do you want to add a second stock or ETF next?
- Will you invest weekly or monthly?
- Are you aiming for long-term growth or passive income?
- Building a strategy—even a simple one—helps you avoid emotional decisions later.
Common Beginner Questions (and Reassurance)
What if the stock drops right after I buy?
That’s normal. Stocks are volatile. If you’re investing for the long-term (years, not days), short-term dips shouldn’t scare you.
Did I buy at the wrong time?
Timing the market perfectly is impossible—even for pros. It’s better to start than to wait forever for the “perfect” entry.
Can I lose all my money?
With a big, stable company or diversified ETF? Extremely unlikely. But yes, investing has risk—so don’t invest money you need next month.
Final Thoughts: Just Get Started
Making your first trade as a beginner can feel like a big deal—and it is. But not because you’ll become rich overnight. It’s big because it gets you in the game.
Once you’ve made your first trade:
- You’ve overcome the fear.
- You’ve learned how the process works.
- You’re officially investing, not just thinking about it.
- Real Talk: My first trade didn’t make me much money. But it changed everything. It gave me the confidence to keep going, learning, and growing my portfolio over time.
Next Article To Read: What Every Beginner Should Know About Risk Management