No More Stock Market Guesswork – Online Stock Trading in the 21st Century

For years stock trading has been portrayed as an activity that only the elite take part in. Others will tell you that stock trading is a “mugs game” and to stay clear of it completely. The truth is that stock trading is something that almost anyone can take part in provided you have enough time to study the basics and develop the right mindset to make sensible decisions when it comes the time to invest your money. Here I am gong to show you how easy it has become for anyone from anywhere in the world can begin to make considerable amounts of money trading stock, not in the traditional way but by using the wonderful advancements in technology, namely, Online Stock Trading.

Advancement in Stock trading

When you think of stock trading and the stock market you will probably have the image of hundreds of traders shouting prices and tearing their hair out, as television depicts. It may surprise you to hear that stock trading on the internet has become the popular method of trading stocks from home and without the need for a conventional broker.

The modern practice of trading goes like this; sign up for an online trading account with one of the many online stock brokers, fund your account, study what stock you would like to buy and place the market order with your broker. They will buy the stock for you and most brokers offer investment advice if required, but for an additional fee. If you feel confident that you can manage your portfolio without professional advice, which can prove expensive I might add, most online brokers offer free tools to assist you with market research such as historical charts, real time stock quotes and educational videos.

Tracking a company’s performance is essential if you are trading short term by checking charts and graphs. If, however, you intend to keep the stock for a longer period of time such as 5 years or more, you will need to check the performance of the stock monthly to ensure that the company hasn’t sustained considerable losses that could affect the value of your investment.

Taking the Guesswork out of Trading

Online stock brokers may have many valuable tools and services available to their customers, but remember that they are really only out to make money from your account with them. How do they make money from you? From monthly/quarterly account maintenance fees, commissions on each trade you make ($9.99 in most cases), account inactivity fees and other hidden charges. I am not going to go much deeper into the broker side f trading, what I am talking about is Stock Trading Software. Stock trading software has been around for years, usually used by banks and other financial institutions to predict market fluctuations and future stock prices; it has been available to the general public in recent years. There are many companies offering this software for sale online for reasonably low prices.

The software is downloaded to your computer and allowed to run for a period of time everyday with access to the internet. It will process stock prices, charts and market changes and eventually produce a stock pick for you to invest in. You then place a market order with your online broker for the desired number of shares you want to purchase. The stock trading software will then continue to process information and monitor the stock pick it gave you until it’s sure that you can sell the stock for a profit.

So what the stock trading software is actually doing is taking the guesswork out of stock trading. All you need to do is leave the software to run for an hour a day, wait for a stock pick and then buy that stock using your online stock broker account, then selling the stock for a profit when the software tells you to.

It is as simple as that. But there is always that small chance that share prices will suddenly drop before you get a chance to sell them; this is where your stop loss order saves the day. It is essential to set your stop loss with your broker before making a stock purchase. This will ensure that your stock will be automatically sold once the share price drops below a certain price.

Okay, now that you have a taste of what Online Stock Trading in the 21st Century is like, get trading!

How to Find the Right Online Stock Trading Companies to Use

Thanks to online stock trading companies it is now easy for anyone, anywhere to trade stocks online. There are a number of factors to consider before deciding on a trading company. For example:

– researching any and all fees charged (including commissions)

– the company’s customer service history (a simple online search for customer reviews will suffice)

– what tools (if any) are provided to customers

– security

– and the company’s portfolio

Let’s investigate why each of these aspects are an integral part of choosing the right company for you from the sea of online stock trading companies.

Portfolio

The stock trading company you choose should have a wide range of investments available to you in their portfolio. This includes a wide array of stock options, mutual funds, access to the international markets and international stocks, exchange traded funds, availability of savings packages for both education and retirement and a variety of investment services available to customers.

Resources Available

What types of resources are available to you by the companies you are considering? Companies with little-to-no resources may not be the right fit for you. Examples of resources to look for in the company’s offerings include:

– stock trading simulators (which help beginners learn about stock trading before they put any money on the line)

– investment plans for education and retirement

– tax advice

– stock research reports

– online forums (to chat with other users and expert investors)

– stock news that is updated consistently

– and automated banking facilities

If a company has few or none of the resources listed above, you may want to keep shopping. There are many online stock trading companies to choose from.

Fees and Commissions

This is a crucial part of online stock trading. Everyone is in it to make money, but you want to make sure that you make money as well. Companies that have large fees and take a great deal of commission may not be the ones you want to go for. Be sure to do in depth research on the fees, commissions and even the required account balance for sign up (to ensure it is within your budget).

Mobility

In this technological day-and-age, it is helpful if a company offers mobile services. With these services you are able to access your portfolio from your mobile phone or other mobile device. Most online stock trading companies support I-phones, Blackberry phones and android powered phones.

Tools

What types of tools does the stock trading company you are considering offer? There are a number of tools that help make trading easier. These include trading charts and graphs, calculators, stock alerts, both level 1 and 2 quotes, search reports, virtual trading facilities and criteria analysis. Each of these tools will serve a purpose in helping with your trades.

Customer Service

As with any company that you are a customer of, choosing online trading companies with excellent customer service and customer support is a must. Great service would include representatives that are knowledgeable, understanding and easy to reach. Many companies offer support via a wide variety of outlets including instant messaging online, email, online forums and traditional telephone contact. The ideal company for you would be one that does not charge for their customer service.

Security

Last, but definitely not least is security. What measures have the online trading companies you are considering set up to keep your information and your money safe? Both your identity and money are at-risk if you choose a company that does not have the appropriate security methods in place. The company should provide a complex, and seemingly annoying, method of accessing the site including complex passwords, secret questions and capture codes (to be sure you are a human and not a computer with hacking software).

It is not advisable to go into online stock trading lightly. Instead, it is in your best interest to do in-depth research on the online trading companies in order to find the company to be suit your needs.

Online Stock Trading Companies – What to You Need to Know Before You Choose One

With the recent resiliency of the stock market, many investors have been tempted to try their hand at investing. Though they have a history of being a risky form of investment, stocks and shares have also proven to give one of the highest returns possible of all forms of investment.

What does it mean to Buy Stock?

When you buy a stock, you are taking a small part ownership of the company whose stock you bought a share of. Traditionally, one would need to hire a stock broker or firm to represent them and help them buy, sell and trade shares. This method can be very time consuming, risky and at times, inconvenient. Now, you have the option of going through online stock trading companies which can help you buy and sell shares almost instantly.

More on Online Stock Trading Companies

Not only do online trading companies give you the option to buy, sell and trade shares on your own, they also provide users with a great deal of information. Whether a beginner or an expert trader, online trading companies open the door to a wealth of information to help their users make informed decisions when it comes to their investments.

Through online stock trading companies you can apply for mutual funds and IPO’s (Initial Public Offerings). You can also manage your portfolio, and schedule orders for future purchase of shares and, becoming increasingly popular amongst investors, you can choose to trade in commodities.

You can also depend on your online trading company to provide you with market updates on a regular basis, send newsletters to your email inbox and even give you advice on the best stocks to buy and sell.

It should be noted, though, that online stock trading companies not take responsibility for any losses that you may incur while trading through them, even if you decide to buy or sell based on a suggestion they gave you. Stock trading is something that you approach at your own risk.

How to Begin

The first step to begin trading online is to choose a company to invest through and open an account. There are a large number of online stock trading companies out there with more and more being created every day. Therefore, it is very important that you carefully consider these important factors before choosing a company.

1. Fees charged. These include commissions, the required deposit amount (if any) and service charges.

2. Customer service history. How quickly will the company be able to answer your questions when they arise?

3. Are they legit? Check out the credibility of the site. You are, after all, investing your money with them. Remember, anyone can start a website these days.

4. Investigate the company history and their financial transaction performance over the years.

5. Any other factors that are important to you should not be ignored. Be sure that the company you choose meets your requirements!

You’ve Chosen a Company, Now What?

Once you decide upon a company and open an account it is time to start investing in stocks! You should know that there are two different ways to trade stocks; let’s explore them:

– The first method of trading stocks is day trading. Day trading involves buying and selling stocks on the same day. Many traders do this with hopes of a great return; assuming that the stock will grow in value by the close of the day. May professional traders choose this method of trading.

– The second method of trading involves purchasing a stock and holding on to it. This is your best bet if you expect said stock to give you a substantial amount of profit in the long run.

Though stock brokers are available to give advice on what to buy, sell or trade, it is not advisable to rely solely on the stock broker to make your investment decisions. Since the stock market is often difficult to time and predict, it is best to regularly invest in the stock market. Be sure to set investment goals for yourself, invest with caution and stay calm if and when the stock market is in a slump. It is best not to make rash decisions, but rather, sound investments in the long run will almost always give good return.

Choosing online stock market companies with a history of good customer service/support and a professional staff will be your best bet to embarking upon a successful stock trading run.