How to Start a Stock Trading Business and Claim Tax Deductions

Incorporate yourself as an official stock trading entity. In most states, this can be accomplished online through your state's Secretary of State website (see Resources). The process is quick and costs less than a hundred dollars in most areas. Creating an LLC is the easiest and least expensive option for most states.
Open a brokerage account in the name of your LLC. This is a critical distinction when claiming business tax deductions for stock trading. The IRS is more likely to accept your trading as a full-time operation if all the stock trades are transacted under an LLC account.
Transfer all funds to and from your brokerage account from a bank account registered by your LLC.
Pay for all services related to stock trading with your LLC's bank account. Never use the account for personal finances or living expenses.



Deduct your Internet service fees, as they are the lifeblood of most trading businesses. Without the Internet, you are not in business.
Deduct educational materials and books related to your trading strategies, as they are specific expenses incurred for the development of your business.
Report all income from capital gains on Schedule D, just as investors do.
Deduct the margin interest for your brokerage account on Schedule C with all of your other expenses.
Deduct home office expenses, including desks, computers, multiple computer monitors (if applicable) and other technology required for your work. These deductions only apply to full-time traders. Part-time investors do not qualify.

How to Invest in the Japanese Stock Market (6 Steps)

Get familiar with the three major indexes used to track developments in the Tokyo Stock Exchange. These are, first, the Nikkei 225 index of major companies as chosen by Japan's most popular business paper, the 'Nihon Keizai Shimbun.' The second is the TOPIX index, and the J30 index is also commonly used to track Japanese big business.
Open a trading account with a large, well-known brokerage. To invest in the Japanese stock market, your order will have to be routed to a licensed member of the Tokyo Stock Exchange. Larger brokerages have the best and most reliable access to TSE members.
Deposit capital into your new trading account, keeping in mind that it is unwise to place all your eggs in one basket. Make sure you have a contingency fund in place to cover your back in the event you lose your shirt in the Japanese stock market.
Work with your financial adviser to identify Japanese companies that you want to invest in. If you prefer to do your own digging, a good place to get started is on the Tokyo Stock Exchange's official English-language website (see Resources below).
Research Japanese companies using the same methods you would use to research domestic companies. If you have no experience researching stocks, pick up a comprehensive introductory guide to stock investing from your local bookstore and spend some time reading before you head into the real world. Keep in mind that it may be difficult or costly to obtain copies of Japanese companies' financial statements.
Place an order to buy the Japanese stock of your choice with your brokerage. Your stockbroker will then forward your request to a Tokyo Stock Exchange member for filling. The time delay involved may mean that the actual price of the stock could differ from your quote by the time your order is actually processed.

How to Trade Stock Futures (5 Steps)

Learn the mechanics of how to trade stock futures. Stock futures are traded as standardized contracts of 100 shares. They are issued for a specified time period and expire on the third Friday of their final month. At that point they must be settled. This means you must buy (or sell) the actual shares unless you have an offsetting option contract (see Step 5). The attraction of stock futures lies in the fact that they can be traded on margin, allowing investors to leverage trades and increase potential profits.
Open a margin account with a brokerage firm. Trading accounts with margin privileges are similar to regular (cash) brokerage accounts, except that you are allowed to borrow money or stock from the broker. Because you buy a futures contract instead of the stock, there are no interest charges. However, this is considered a margin transaction because your potential liability is greater than the money you put up as a margin requirement. A margin account typically requires a $2,000 minimum balance, although for day traders this may be as high as $25,000.
Place an order to for a call (buy) or put (sell) futures contract with your broker. SEC regulations require a 20 percent margin. For example, if you purchase a contract for a stock selling at $25 a share, you must put up $5 a share or $500. If the stock goes up by $5 a share you make $500---a 100 percent profit, instead of the 20 percent you would make by buying the stock itself.
Keep up with daily fluctuations in the market price of the stock. The risk when you trade stock futures is as great as the potential profit. If the stock falls in price (or rises for a put futures contract) your investment decreases quickly and you will get a margin call. For example (using the example from step 3), if the stock falls from $25 to $23 a share, your margin falls to $3 a share, or 13 percent of the share price. You must then add more funds or the broker has to close out the account. Since small changes in price have such a large effect, you need to monitor the stock on a daily basis, if not more often.
Close out the transaction when you are ready. Very few stock futures contracts are actually exercised (that is, the underlying shares purchased and delivered). Instead, trades are normally settled by purchasing a second futures contract of the opposite type (a put if you are holding a call and vice versa). The two contracts simply cancel each other out at expiration.

How to Sell Metlife Stock

Call your brokerage firm. If you signed up with a online brokerage firm, log on. Make sure you have your certificate of ownership when selling MetLife stock at a brokerage firm. When you are online, it should already indicate that you own MetLife Stock.
Indicate how many shares of MetLife stock you want to sell.
Sell your MetLife stock online, after indicating the amount, or sell the shares using your broker at the brokerage firm.

How to Become a Stock Investor

Contact your employer and review the stock market investments you have at work. If you work for a for profit company, you might have access to a 401k plan that can be invested in the stock market. Employees of public institutions can invest in a 403b plan. In addition, some companies sponsor employee stock purchase plans that allow workers to purchase company stock through payroll deductions.
Contact several online brokerage firms if you want to invest in individual stocks. The price of trades at online brokers like E*Trade, TD Ameritrade and Scottrade can be less than $10 each.
Review the requirements for an online brokerage account and make sure you meet them. Each broker will have different minimum balance requirements, and if you do not meet the minimum requirements you might be subject to maintenance charges and other fees.
Contact several mutual fund companies and request a prospectus for their managed and index funds. A study of mutual funds reported in Money Magazine found that most managed funds fail to outperform the index over the long-term, so choosing an index fund can be a good move.
Complete the application for the online brokerage firm or mutual fund you wish to use, then submit the completed form and your initial deposit to the address listed on the form. Keep in mind that some firms use a separate address for regular and overnight mail, so be sure to send the application to the right address.

How to Calculate Stock Value Per Share

Find the total value of your stock. Many brokerage screens will give the total value of the money you have invested in a certain stock. For example, say that you have $10,000 invested in Company X.
Find the total number of shares you own for that company. For example, say you own 250 shares of Company X.
Divide the total value of the stock, by the total number of shares. Using the example, the equation reads:Value of Stock / Number of Shares = Price per Share$10,000 / 250 = $40 per share.

How to Start Online Stock Trading (7 Steps)

Pick an online discount broker. There are dozens of online brokers on the web, but finding one that fits your needs can be a challenge. Do your research, find which broker fits your specifics needs as well as possible, and then open your account.
Complete the registration process. You will be required to give all of the relevant information, such as your name, social security number, address, and other information the brokerage site will ask you for.
Fund your trading account. You can send in a handwritten check, or transfer the money through a wire transfer (with a fee) or a slower ACH transaction (free but takes three or more days).
Mail in the required paperwork (and funds) to the address provided by your online broker. It may take up to 7 days to process your account.
Complete the remaining registration process. Trading passwords, PIN numbers, and other security measures may be involved but takes only minutes to complete. Never share these with anyone, but it is wise to write them down at your home or office just in case you forget them.
Acquaint yourself with the menus and trading screens your broker has created for you. Take their online tutorial or watch any 'beginning investor' videos they site may have prepared to expedite your learning curve.
Buy your first stock. Choose the company you want to invest in, input the stock symbol it trades under, input the amount of shares you want to buy, and click 'Execute.'

How to Buy Paper Stock Certificates

Determine which company you want to purchase. You can purchase paper certificates from some companies for a substantial fee (usually around $50 to $75, as of January 2010). This is in addition to the market value of the stock.
Contact your broker. Ask them if they have access to paper stock certificates. If you are already paying brokerage fees, they might provide a discount. If your broker is large enough, they might also sell actual certificates. The part of the brokerage or bank that does this is called Custody Operations.
Contact RealStockCertificates.com. This company specializes in stock certificates. They have stocks that are over 100+ years old, as well as an online database where you can view stock certificates and the current selling price.
Visit OneShare.com. Oneshare allows you to purchase framed shares of stock to keep for yourself or give as gifts. The price of the frame stock certificate will depend on the actual price of the stock. For instance, Cheesecake Factory (NYSE: CAKE) might be trading for $20, however, the fee may differ with the inclusion of a frame, matte, and anything you want engraved on the certificate.