Understand Trading Stocks Online

The advent of online stock trading has allowed the average person the ability join the online stock trading game. Gone are the days when you needed to have a real connection to a quality stockbroker to trade stocks. Anyone with an internet connection and a computer can trade stocks online. The only obstacle to trading stocks online is sifting through the vast amounts of information on how to get started and how to properly trade stocks online.

Instructions

Things You'll Need:

• a computer
• an internet connection
• willingness to research stock trading
• patience

1. Step1

   Research options for opening an online stock trading account. Factors that you will want to consider:
   - The amount the company charges per trade
   - How long the company has been in business
   - Reviews of the online stock trading company.

2. Step2

   Open your online trading account

3. Step3

   Research the terminology of online stock trading. Make sure you fully understand terms such as:
   -day trading
   -penny stocks
   -swing trading
   -brokerage stock
   -options trading
   -commodities trading
   -short trading

4. Step4

   If you are brand new, consider opening a virtual online trading account. You can practice online trading without investing real money.

5. Step5

   DO YOUR COMPANY RESEARCH. This is your most important step. You will want to thoroughly research technical documents and follow research analysis.

6. Step6

   Be wary of "hot stock tips" without doing full research. Read company reports and company documents to fully understand the management philosophy and the direction the company is looking to take in the future.

7. Step7

   Strongly consider diversifying your online stock investments. Make sure you are able to spread out your investments.

8. Step8

   Be realistic. Although your goal is to make money, don't expect huge gains and be prepared to lose any money you invest. Online investing can be risky and you should only invest if you are able to afford to lose what you put in.

Tips & Warnings

• Do a great deal of online stock trading research
• Learn about stock trading terminology
• Follow stock trading forums and stock news sites
• Only invest what you can afford to lose