how do you get into stocks and shares

Quick start: what this guide gives you

If you’re asking "how do you get into stocks and shares", this guide walks you through every step: what shares mean, the accounts you’ll use in the US and UK, the types of investments to consider, how to choose a broker, how to place your first trade, and practical tips for managing costs, taxes and risk. Read on to turn that question into a clear plan and your first trade.

Overview of stocks and shares

Shares (also called stocks or equities) represent fractional ownership in a company. When you own a share, you own a slice of that business and can benefit if the company grows in value or pays dividends.

Investors typically make money from shares in two ways:

• Capital gains: the price of the share rises and you sell for a profit.
• Dividends: periodic cash payouts when a company distributes part of its profits.

You can buy individual stocks (single companies) or pooled products such as exchange‑traded funds (ETFs) and mutual funds that hold many stocks. Pooled products reduce single‑company risk and are often recommended for beginners.

Why invest in stocks and shares?

Historically, equities have produced higher long‑term returns than cash or savings accounts, making them a core choice for goals like retirement, wealth growth and funding long‑term plans. Stocks are more volatile than cash, so they suit longer time horizons.

Key trade‑offs:

• Reward: higher potential returns over many years.
• Risk: prices can drop sharply in the short term.

Deciding to invest depends on your goals, time horizon and risk tolerance.

Key concepts and terms (quick glossary)

• Equity / share: ownership in a company.
• Market capitalization: company value = price × shares outstanding.
• Dividend: company payout to shareholders.
• ETF (exchange‑traded fund): a fund that trades like a stock and holds many assets.
• Index fund: a fund that tracks an index (e.g., S&P 500, FTSE 100).
• Mutual fund / investment trust: pooled funds, often actively managed.
• Broker: the platform that executes trades and holds your assets.
• Order types: market, limit, stop; fractional shares allow partial share purchases.
• Diversification: spreading investments across assets to reduce risk.
• Risk tolerance: how much volatility you can accept.

Prepare before you start

Set clear financial goals and time horizon

Define what you want to achieve and when. If you need the money in under five years, conservative options are better; for retirement or long goals (10+ years), equities typically make sense. Your horizon shapes the mix of stocks, bonds and cash.

When asking "how do you get into stocks and shares", the first step is clarifying the goal — retirement saving, income, growth, or learning to trade — because the right accounts and products depend on that.

Emergency fund and high‑interest debt

Before investing, keep an emergency fund covering 3–6 months of essential expenses and pay down high‑interest debt. This reduces the chance you'll need to sell investments at a loss.

Assess risk tolerance and investment capacity

Estimate how much you can invest without touching it. Consider simple questionnaires offered by platforms or reflect on how you'd react to a 20–40% market drop. Start with amounts you’re comfortable with and consider regular contributions.

Types of investments (what you can buy)

Individual stocks (shares)

Pros:

• Direct ownership and potential for high returns.
• You can target companies you understand.

Cons:

• Company‑specific risk; single stocks can be volatile.
• Requires research and monitoring.

For beginners asking "how do you get into stocks and shares", buying one or two quality stocks can be educational, but balance them with diversified funds.

Exchange‑traded funds (ETFs) and index funds

ETFs and index funds provide instant diversification, usually with low fees. They are excellent core holdings for new investors and can track broad markets, sectors or strategies.

Advantages for beginners:

• Low cost, easy to buy and sell.
• Spread risk across many companies.

Mutual funds and investment trusts

These are pooled products that may be actively managed. Active funds aim to beat an index but often charge higher fees. They can be appropriate in certain situations, such as access to professional management or specific strategies.

Dividend stocks, sector funds, and specialty ETFs

Dividend stocks aim to provide income. Sector or thematic ETFs give exposure to specific industries (technology, healthcare) or themes (clean energy). They can add targeted exposure but increase concentration risk.

Derivatives, CFDs, and leveraged products (overview and warning)

Derivatives (options, futures), CFDs and leveraged products magnify gains and losses. They are complex and risky. Beginners should generally avoid them until they fully understand the mechanics and risks.

Account types and tax wrappers

Standard brokerage (taxable) accounts

These are flexible accounts for buying stocks and funds. You’ll pay taxes on dividends and capital gains per your local rules.

Retirement and tax‑advantaged accounts (US/UK examples)

• US: Traditional IRA, Roth IRA — tax advantages for retirement savings.
• UK: SIPP (Self‑Invested Personal Pension) — tax relief for retirement contributions.

These accounts offer tax benefits and are typically prioritized for retirement saving.

ISAs / Stocks & Shares ISAs (UK‑specific)

A Stocks & Shares ISA shelters investments from UK tax on dividends and capital gains within annual allowance limits. For UK investors, an ISA is a powerful wrapper for long‑term investing.

Robo‑advisors and managed accounts

Robo‑advisors provide automated portfolios based on your risk profile and goals. They are convenient for beginners who want hands‑off management and automatic rebalancing.

If you’re wondering "how do you get into stocks and shares" and prefer low effort, a robo‑advisor or managed account can be a simple entry path.

Choosing a broker or platform

Types of brokers (full‑service, discount, mobile apps)

• Full‑service brokers offer advice and research at higher cost.
• Discount brokers offer low‑cost execution and self‑service tools.
• Mobile app brokers prioritize user experience and fractional shares.

Bitget is recommended as a versatile platform for traders exploring digital and tokenised markets, and Bitget Wallet is a suggested option when interacting with tokenised or web3 assets.

Key selection criteria (fees, account types, market access, UX)

Compare:

• Trading fees and commission structure.
• Account types (tax wrappers, retirement options).
• Market access (US, UK, international exchanges and ETFs).
• Platform usability, research tools and customer support.
• Security, custody and regulatory status.

Account opening, identity checks, and funding

Opening an account typically requires ID, proof of address and basic personal details. Funding methods usually include bank transfer and sometimes card payments or supported stablecoins for platforms that accept them. Expect an identity verification process before trading.

How to buy your first shares — step‑by‑step

Research and selecting an investment (stock or fund)

Start with simple screens: market cap, sector, recent performance and, for funds, expense ratio and index tracked. Seek diversified ETFs as core holdings. Avoid buying on tips without understanding the company.

Order types and execution (market, limit, fractional shares)

• Market order: buy/sell immediately at current price — simple but price‑uncertain.
• Limit order: set the maximum price you’ll pay — gives price control.
• Fractional shares: allow investing small amounts in expensive stocks or ETFs.

Place limit orders if you want to control execution price; use market orders for fast fills in highly liquid ETFs.

Placing the trade and confirmation

After submitting a trade, you’ll receive a confirmation. Settlement often takes 1–3 business days depending on the market (T+1/T+2). Your broker will custody the shares for you and display them in your account.

Portfolio construction and diversification

Asset allocation basics (equities, bonds, cash)

A simple guideline ties equities exposure to your age and risk: more equities for longer horizons, more bonds/cash as you near goals. For example, a common rule is equities percentage = 100 − your age (adjust for comfort).

Diversification across sectors, geographies, and instruments

Use broad ETFs to get exposure across countries and industries. Diversification reduces the impact of any single stock or region on your portfolio.

Rebalancing and contribution strategies (dollar‑cost averaging)

Regular contributions (monthly/quarterly) reduce timing risk — this is dollar‑cost averaging. Rebalance annually (or when allocations drift materially) to maintain your target risk profile.

Costs, taxes and fees

Brokerage commissions, spreads and platform fees

Fees reduce long‑term returns. Watch for flat commissions, per‑trade fees, inactivity charges and foreign exchange costs when buying international stocks.

Fund expense ratios and tracking error

ETFs and index funds have ongoing expense ratios; lower ratios often translate to better long‑term performance. Tracking error measures how closely a fund follows its index.

Tax implications of dividends, capital gains and withdrawals

Tax treatment varies by country and account type. For example, in the UK, Stocks & Shares ISAs shelter gains and dividends; in the US, Roth IRAs grow tax‑free. Keep records of purchase prices (cost basis) and consult local guidance or a tax professional for specifics.

Research and analysis for beginners

Fundamental analysis (financial statements, ratios)

Basic metrics to learn include:

• P/E (price to earnings): a valuation snapshot.
• EPS (earnings per share): company profitability per share.
• Revenue growth and profit margins: signs of durable business strength.

You don’t need deep accounting to start — focus on simple, repeatable checks.

Passive research and using indices/ETF documentation

Read ETF prospectuses and fact sheets: they show holdings, sector weightings and fees. For index funds, know which index you’re tracking and its methodology.

Tools and educational resources (screeners, broker research, news)

Use stock screeners to find candidates and demo accounts or paper trading to practise. Bitget’s learning resources and demo features are useful for beginners getting hands‑on experience.

Risk management and common pitfalls

Managing emotional behavior and avoiding timing the market

Emotions drive many bad decisions. Focus on long‑term plans, stick to contributions and avoid trying to time market highs and lows.

Overconcentration and chasing hot tips

Avoid putting a large portion of your portfolio into a single stock or sector based on a tip. Diversification and a core allocation to broad ETFs helps mitigate this risk.

Use of stop‑losses, position sizing, and risk limits

For active traders, set position limits and consider stop orders to protect capital. For long‑term investors, position sizing and diversification are the simplest safeguards.

Monitoring, record‑keeping and tax reporting

Review your portfolio periodically (quarterly or annual review) to ensure allocations match your plan. Keep transaction records and cost basis information for tax reporting and tracking performance.

Advanced considerations (for later)

Topics to learn after mastering basics:

• Options and advanced derivatives.
• Margin lending and borrowing against positions.
• Short selling and its risks.
• Factor investing and alternative strategies.
• International market mechanics and currency risk.

These require deeper understanding and are not usually appropriate for beginners.

Practical checklist for getting started

• 1. Set clear goals and time horizon.
• 2. Build an emergency fund and reduce high‑interest debt.
• 3. Decide how much you can invest regularly.
• 4. Choose account type (taxable, ISA, IRA/SIPP as relevant).
• 5. Select a broker or robo‑advisor (consider fees, custody, UX).
• 6. Open and fund your account (complete ID checks).
• 7. Pick core holdings — start with diversified ETFs or a small selection of stocks.
• 8. Place your first trade (use limit orders if price control matters).
• 9. Set a regular contribution plan and automatic transfers.
• 10. Review allocations and rebalance annually.

If you still ask "how do you get into stocks and shares", follow the checklist above and pick one small, manageable action today — open an account, fund it, or buy a single diversified ETF.

Further reading and learning resources

Recommended beginner resources (general guidance, broker education and simulators):

• Beginner investor guides from mainstream financial sites and broker educational pages.
• Books and podcasts on long‑term investing and behavioral finance.
• Demo or paper trading features to practise without losing real money.

Glossary (one‑line definitions)

• Equity: ownership stake in a company.
• Dividend: cash payment to shareholders.
• ETF: basket of assets traded on an exchange.
• Index fund: fund tracking a market index.
• Broker: service that executes and holds your trades.
• Market cap: company size measured by share price × shares.
• Expense ratio: annual fee charged by a fund.
• Limit order: order to buy/sell at a specific price.

References and context

• The Motley Fool — How to Invest in Stocks (US & UK beginner guides).
• NerdWallet — How to Invest in Stocks: 2025 Beginner's Guide.
• Bankrate — How to buy stocks: A 5‑step guide for new investors.
• CMC Markets — How to Invest in Stocks: A Beginner’s Guide.
• UK.StockBrokers.com — How to Invest in Stocks in the UK.
• The Telegraph — How to invest in stocks – a beginner’s guide.
• Hargreaves Lansdown — How to start investing in the stock market.
• Video tutorials and demo accounts for practical walkthroughs.

As of Jan 23, 2026, according to CoinDesk, tokenisation and 24/7 market developments are accelerating: tokenised asset market growth has been forecast to reach $18.9 trillion by 2033 and 2026 is described as an inflection point for continuous capital markets. The same report noted brokerage developments such as Interactive Brokers beginning to accept USDC to fund accounts — an example of how fiat and digital rails are converging (source: CoinDesk, Jan 23, 2026).

Editorial note

This article is educational and not personalized financial advice. It explains how do you get into stocks and shares in plain terms and offers practical steps and sources. For tailored advice about your specific circumstances, consider consulting a licensed financial advisor.

Ready to start? Explore Bitget’s educational resources, consider opening a tax‑advantaged account where applicable, and try a small, diversified ETF as your first position.