If you’re thinking about investing in the stock market for the first time, or looking to build your existing portfolio, it’s worth thinking about buying, selling, or trading Bank of America stock. As ever, successful investing requires an understanding of investing principles and research about any stocks you’re considering buying, which is why we’ve produced this page and other educational articles to help you make smart investment decisions with your money.
If you’re already up to speed and are just looking for a way to get investing, then simply follow the helpful links below. If you still need more time and want to learn more, then keep reading and we’ll take you through how and where to buy, sell, and trade Bank of America stock.
Buy Bank of America stocks, right now
Click the links below to select the right online broker for you, and get started buying shares of Bank of America:
Trade Bank of America stocks, right now
Trading shares is a shorter-term strategy than buying shares. When trading shares of Bank of America, you’re entering and exiting a trade within a short period of time, with the goal of generating fast profits rather than holding stocks you think will increase in value for long amounts of time.
We’ve reviewed a range of low-fee online brokers to help you craft the right trading strategy and take advantage of investment tools such as leveraged trading and adopting short and long positions.
How to buy Bank of America stocks in 7 simple steps
Before buying shares in any company, you should do your research about the organisation and how the value of its shares has changed over time. You want to ensure you’re buying stock you have good reason to believe will increase in value, as then you can start to build a successful portfolio over time.
Here’s a checklist the experts at Invezz think it is important to go through before buying Bank of America stock:
- Get to know the company. What is Bank of America? How did it grow to become one of the biggest banks in the world? Are Bank of America’s earnings and revenue growth accelerating or decelerating? The better you understand the company, the better an understanding you will have of what a fair price for their stocks would be.
- Learn the basics. Get to know what key investing terms such as market share and breakout mean. It’s also good to learn and understand terms that describe key measures of fundamental strength, including return on investment and EBITDA. If you want to make money buying and selling stocks, it is important you have a good understanding of the process and how value can be found.
- Decide if you want to be share-dealing or trading. When share-dealing, you are buying shares in a company (such as Bank of America). To make money through share-dealing, you just need to sell shares at a higher price than the one at which you bought them. Share-dealing can also enable you to make money from dividends – if you buy shares in a company that issues dividends – which are typically issued at the end of every quarter if the company is financially healthy. Trading shares is a shorter-term approach, which can even include day trading (buying and selling shares on the same day). When trading Bank of America stock, you’re often not literally buying and selling stock but rather speculating on its value. Essentially you’re betting whether the price will go up or down. The most important factor when trading is learning how to read and understand stock charts (technical analysis) rather than fussing over earnings growth (fundamental analysis).
- Set a budget. When you start investing, start with a smaller budget that only risks an amount of money you could afford to lose. Bank of America currently trades around $20 a share, so for instance you could buy 50 shares for $1,000. Starting small enables you to learn more about investing with less capital risk, and then you can keep growing your investment over time to see bigger gains.
- Choose a broker. There are lots of online brokers that can handle all your trading needs. Look for a broker that offers a strong reputation, low transaction costs, and an easy-to-use platform. Invezz publishes in-depth reviews of all reputable brokers, so head on over to these pages in order to find out the best service to use.
- Evaluate the state of the stock market. The rise and fall in the value of stocks both drives and is driven by the confidence currently shown in the stock market. If prices are rising, investors are more confident in buying shares, whereas if prices are falling it can cause a chain reaction whereby people stop buying stocks because their value is falling. You want to make sure to understand the health of the stock market, as you want to be buying shares that you believe will increase in value.
- Make your first investment. Once you’ve done your research, decided a budget, and selected a broker, then buying Bank of America stock is a very simple process. Simply log into your online brokerage account, type Bank of America’s ticker symbol (BAC), check that the stock’s price is at a level you’re happy to pay, and then hit buy. You’ve just successfully bought Bank of America stock.
Ways to invest in Bank of America
There are many methods you can choose to buy, sell, and trade shares of Bank of America online, but the two major different forms of investing are share-dealing and CFD trading. We’ll take you through the major differences between these approaches right here.
Share-dealing entails buying and then holding shares of a company over time. The aim with this sort of investment is to build a portfolio of stocks you believe will continue increasing in value into the future, thereby seeing the value of your portfolio keep increasing at a steady rate.
- Pros: Share-dealing enables you to focus on fundamentals, rather than obsessing over mastering technical stock chart analysis. Also, if Bank of America shares start rising, holding for a longer period of time could lead to big gains.
- Cons: Your money’s tied up for longer, so it’s not accessible to make other trades, meaning you could miss out on other investment opportunities. If Bank of America’s stock starts falling after you buy, you’ll face a tough decision either to cut your losses and sell at a lower price, or to keep holding teh stock in the belief that it will rise in value again after any correction.
CFD stands for contract for difference. CFDs are investment derivatives that let you speculate on the price movement of investment assets, be they forex, commodities, or shares of Bank of America.
When taking part in CFD trading, you own a contract, but not the actual asset you’re trading. The easiest way to get your head around it is to think of a race course. Punters make money on horse races by betting on which horse they think will win a race – they don’t need to own the horse. CFD trading is similar: by adopting trading positions you are speculating on the value of a stock without having to actually buy it.
- Pros: With a CFD, you can open and close trades quickly, and also have access to a variety of trading techniques such as trading with leverage. Leverage trading enables you to venture just a percentage of the total trade value, with the CFD broker covering the rest. When trading with leverage, the size of your potential gains rises significantly (but, of course, this is equally true of any losses).
- Cons: CFD trading with leverage makes more money when a stock rises, but it also produces a much bigger loss when a stock falls. If you leave a leveraged CFD position open more than a day, you must pay overnight fees. When CFD trading you will also not receive any of the dividends or voting rights that come with owning shares of certain companies.
The more you know about investing, the better prepared you’ll be to make money in the stock market. Read our online guides, news articles, and educational courses to improve your investing knowledge. If you’re ready to buy Bank of America Stock, simply click one of the links above.
How to buy, sell, and trade Bank of America shares for beginners
If you’re an investing novice considering buying Bank of America stock, here’s a quick summary of what you need to know:
Online brokerage firms provide trading platforms that you can use to buy shares quickly and inexpensively. Buying shares is a good approach if you want to hold for a longer period of time and profit off any increase in their value over time. To buy shares, simply log into your online brokerage account, type Bank of America’s ticker symbol, and enter the amount of shares you want to buy.
When selling shares, you turn a profit when you sell the stock at a higher price than the price at which you bought them. You can make money in two ways when selling shares: hold for as long as possible and try to sell for the biggest possible profit, or sell to take profits and avoid a potential downturn. The process works similarly to how shares are bought, simply go to your broker’s platform and select the shares you wish to sell, then confirm you’re happy with the price and the money will be credited to your account.
Trading shares is done through CFD brokers. To use a CFD broker platform, you’ll need to familiarise yourself with how to read and analyse stock charts. Instead of buying and selling shares, once you have set up and deposited money into your account on a CFD platform, you’ll be able to make trades by opening and closing positions as the price of Bank of America stock rises and falls.
Our top tips for investing in Bank of America stock
Here are the 5 top tips from the Invezz team for people thinking of investing in Bank of America stock:
- Know your budget. Don’t invest more than you can afford to lose. You can invest more with time, experience, and more money at your disposal.
- Choose a strategy that works for you. Find an investment strategy that fits your goals, and decide whether share-dealing or CFD trading is more appropriate for you.
- Stick to an investing plan and don’t react to emotions. Crafting and following a sound investing plan will help you overcome emotions such as fear and greed, which can cloud your judgment and cause you to make bad decisions. The stock market always fluctuates up and down, so it is important to keep a cool head.
- If market conditions change, be ready to pivot. When the stock market starts plummeting, be proactive rather than just letting your profits vanish. Always keep the state of the broader stock market in mind when making investment decisions. As with the point above, this isn’t about reacting to panic, but calmly assessing the situation to figure out if selling your stocks would be the right approach.
- Learn from your mistakes. It’s OK to make mistakes; everyone does. What matters is learning from those mistakes and continuing to improve your investment strategy in light of them. Review your trades, figure out what went wrong, and make a plan so you can do better next time.
What should I consider before buying, selling, or trading Bank of America stock?
When investing your money, there are a few basics it is always helpful to consider. Here’s a quick summary of things to bear in mind:
- Budget size. When choosing between buying and trading stock, looking at your budget is a good place to start/ If you have a relatively low budget of let’s say $1,000, then you’ll likely find that CFD trading comes with associated fees that can eat into your profits and you might want simply buy and hold shares in Bank of America. If you have a bigger budget (say, more than $10,000), then the trading fees become negligible and you can consider buying or trading stock on a variety of platforms.
- Investment options. Avoid risky investment strategies until you’re more experienced, but it’s good to consider the number of trading options your broker offers. For instance if you’re CFD trading, then you can use stop-loss orders to protect your investment. Here’s how that works: Say you buy shares of Bank of America at $20 per share. You can then put in a stop-loss order at $18 per share, meaning that your position will automatically cash out if the price of the stock falls below $18 – protecting you from larger losses in case the stock crashes.
- Market conditions. When a bear market kicks in, defensive investment strategies such as bonds, commodities, and cash are usually better bets than growth stocks. If the market’s flourishing, it’s a good time to consider buying shares as their value will likely increase.
- Know your investment goals. Knowing where you want to get to is the most helpful part of crafting an investment strategy. Day trading can be a good approach if you’ve learned how to read stock charts and want to make money quickly. If you want to follow a stock’s long-term performance and build a portfolio for the future, buy and hold shares.
What is Bank of America?
Bank of America is the second-largest banking institution in the United States, with a history that stretches all the way back to 1923. The company employs more than 200,000 people and operates 4,600 retail financial centers, and in 2018 it was ranked #23 on the Fortune 500 list of US companies by generated revenue.
Try some of our stock market courses for beginners
If you feel that you want to learn more before investing, great! Simply follow the steps outlined in our educational courses. Once you’ve learned those key lessons, you’ll be ready to buy shares of Bank of America.