There are two ways in investing in the market.
Speculation or value investing.
Graham is the father of value investing. Jesse Livermore speculation.
Speculating is betting on short term. Momentum. Imagine brexit. The stocks would go down. At least initially. In speculation I look for events.
Jesse Livermore said something like all investments are speculative. Giving the example of railroads companies.
In speculation the important is the price. In value investing you use different metrics which gives a reasonable value of the company. You buy a company not caring for the price tomorrow.
To open an account in a trading plattform is easy.
Problem is you need to use intermediaries. Brokers. Except with direct purchase plans you will need a intermediary between you and the stock of the company you want to buy. You cannot buy a stock directly of the stock exchange. Which to me is amazing. Since with the advent of internet there is no reason whatsoever for brokers to exist. Unless to control the market.
There´s a thing called slippage.
https://en.wikipedia.org/wiki/Slippage_(finance)
There are several companies who are convicted for doing ilicit slippage. All of them do. That´s why I laugh when somebody says Robinhood is free. I´m not saying RH does slippage.
Slippage basically means the brokers works against you. Imagine there´s a stock at 10$. For some reason you bet it will go up till 15$. You click buy. The order isn´t executed immediately. The broker instead of executing the order will buy it for 10$ for himself wait till it gets let´s say until 15$. And sell it to you for 15$. Making a profit of 5$. Now you knew it would get to 15$. But instead of continuing going up it starts coming down till 12$.
So you made a loss of 3$. Even though everything you did was right.
Now you want to sell it. You click sell. Same story. The broker sells it for 12$. Waits till it gets 10$. Buys it at 10$ and sells it to you. Making a profit of 2$.
It´s the same principle when you flipp houses. You know somebody wants to buy a specific house. You buy it yourself and resell for profit.
http://thefxview.com/2014/01/04/what-is-...-slippage/
http://www.financemagnates.com/forex/bro...-slippage/
Every time you click buy (market order) your giving a free check. The broker can write the number he wants. Of course there´s stops, limits, etc. But if you use this ones. You never buy the stock.
There´s even stories on brokers having hedge funds betting against their brokers clients orders.
It´s kind like a tax. The brokers tax. A way to bypass this is buying on the last 5 minutes of the session. But even then I once had my stock in red on the station and it was green on every stock site. The broker told me it would be updated. I´m waiting till today.
The best brokerage in theory is Schwab. Even though I´ve never used it.
Do not paper trade. Trade will small amounts even 50$. Have some skin in the game. Also paper trade doesn´t take into considerations a lot of factors.
At one point I started to read how to create a brokerage company. It´s not that hard if you use an offshore.
It´s easy in theory to make money in the stock market. But the intermediaries fuck it up.
Without slippage. I would beat the market consistently. Since I´m not opening up a brokerage firm. I will wait for a downturn of 30%. Buy stocks blue chips dividend aristocrts, through direct purchase plans and keep them until the dividend yeld passes bellow 5%.