Not too long ago, the average person was not permitted to participate in stock trading. If you wanted to trade stocks, you had to have a middle man who was licensed to do the stock trading for you. Most people consider trading stocks using a middle man very safe and pose the least risk, many are now able to trade stocks themselves, thanks to the Internet.

Today, anyone can be his own stock broker; he can trade stocks himself throughout the day, and he only needs to have a computer and an Internet connection. But there's another way on how to trade stocks.

1.Direct Stock Trading with Companies

Probably the most secretive way you can trade stocks is by trading directly with the companies. With this stock trading, you bypass the stock brokers, online trading sites and the stock markets altogether. However, majority of companies that offer stocks don't allow direct purchasing of their stocks. Those companies that do make purchasing stocks simple and hassle free; it doesn't involve any overheads or trading fees.

This type of stock purchasing is done via company employees. In fact, this is the method that's most commonly used. Some companies, however, allow people who already own company stuck to buy more from them directly instead of making them buy additional stocks through a third

party broker. Direct stock trading is probably the least expensive way to buy stocks. However, the downside is that it can be hard to manage

separate investment accounts with the individual company in which you own stocks. It's an affordable investing method but the trade off is

that it's not very organized.

2.Buying Stock Using a Full-Service Stock Broker

The most common method of buying stocks is through a stock broker. This is how your father, your grandfather and great-grandfather most likely bought stocks. With the entry of ETrade and similar companies, however, most people are discovering that they don't really need a full-service stock broker in order to trade stocks; they can now do the trading themselves. Trading via ETrade usually involves lower fees.

But having a full service stock broker on your side is still a good idea, and can pay off dividends for you. Thanks to the Internet, you

can easily conduct stock research and find information to help you make good investment decision. However, unless you're in stock trading

full-time, you won't know as much as what a professional stock broker knows. A stock broker can evaluate your investment decisions and give

you advice before you act on your plans.

A full-service stock broker won't just help manage your stock trades, he'll also manage your investment portfolio so you're sure your long term investments are safe. A stock broker can help you curb your impulsive tendencies, too. He'll be there to always remind you that your long term investment goals are of the utmost important. He won't simply let you dump all your life savings into the hottest tech stock.

3.Trading Stocks via an Online Stock Trading Company Online stock trading companies have cropped up lately; they're the latest way for you to trade stocks. This stock trading method is practically a hassle free, but it doesn't give you the opportunity to analyze the trading decisions you make. This type of stock trading is recommended to those who've had years or enough experience in stock trading and investing. A lot of these online stock trading companies

do not have sufficient information for each trade proposed for the

beginning trader.