How to Learn Online Stock Trading
Why Would You Want to Learn Online Stock Trading?
Are you looking for ways to earn extra money? Could you potentially earn your total living by online investing or day trading? Is there a part of you that yearns to join the fast-paced adrenaline-pumping action of online stock trading? These are the topics to be discussed in this article, so read on if there’s an inner Warren Buffet in you waiting to test the waters of online stock trading. It does not have to be overly complex or as intimidating as many potential traders may think.
How to Learn Online Stock Trading
Fortunately for beginners there are numerous methods available to learn the basics of online trading:
Books – both hard-copy and ebooks are available that guide you through your investment decisions and how to pick both investments and a broker.
Online sources – just perform a couple of searches on the internet and you can find literally thousands of companies and individuals with a wealth of information and guidance for you. A word of caution – as in any business endeavor there are unscrupulous resources just waiting to take advantage of inexperienced or naïve individuals. Check credentials before proceeding with these contacts. One well-known source of investing information is investopia.com.
Personal mentors – perhaps you know a friend or family member who is familiar with online stock trading. Their experience can be invaluable to you with guidance on what has worked for them and what strategies failed them. Due your due diligence on any “hot tips” provided though.
Study – before investing it is important to understand the company or vehicle you’re investing in. Do some research on the company and its recent stock trend and earnings potential. Some of the most successful investors such as Peter Lynch have suggested that investors participate in what they know. This means that if you have in-depth knowledge of a market such as health care or commodities such as metals or agriculture products it may be to your advantage to invest in markets that you understand.
Monitor news and company announcements – when companies announce financial events such as restructuring, earnings expectations, or looming layoffs it will impact your investment decisions. Global news events such as political unrest or economic conditions will similarly impact stock markets, possibly with either for short-term or long-term results. There are many excellent sources for news including CNN.
Experience – once you have selected an online stock broker, start slow. Don’t risk considerable capital with your first trade however lucrative it may appear on the surface. Remember that all capital is at risk in the stock market. Don’t participate in markets that you have no understanding of such as stock futures until you’ve had time to truly feel comfortable with such vehicles.
Learn how to read stock charts – there are multiple forms of stock charts investors utilize to track stock performance and market trends. Some are reasonably basic for use by beginners and others are extremely complex that tend to be utilized by more experienced savvy investors. Stockcarts.com is a good site for beginning chart reference. At the least get a basic understanding of standard stock ticker information that’s available on nearly every financial page or brokerage site.
Learning Online Stock Trading in a Nutshell
Once you’ve decided that online stock trading is right for you the steps to successful trading are:
- Get a computer with internet access (a tablet or smartphone is also supported by some online brokers)
- Set up an online brokerage account
- Determine the investment strategy that you will pursue (stocks, commodities, etc)
- Research market conditions and news sources for the right timing to buy a particular stock
- Make that first buy order
- Continue monitoring your investment for the indicators revealing the right time to sell. Note that day traders monitor these conditions closely and may hold an investment for only a few days, hours, or even minutes.
- Keep notes – keep a ledger of what strategy worked – and did not. It’s your experience that will allow you to fine-tune and adjust your investment strategy. You learn as much from your failures and your successes.
Getting Started with Online Stock Trading
Once you’ve made your determination on the investment instruments that most fit your trading strategy and loss tolerance you need to select an online broker. It’s your online broker that will facilitate your research and execute your buy and sell orders. Be certain the online broker you select has the features you need for analysis and monitoring of the stocks you’re interested in. Online brokers may vary in the financial products they offer to clients. To maximize your investment options be sure your broker provides a full complement that includes stocks, bonds, commodities, and forex trading.
SureTrader is a leading online broker with the tools and news access that keeps day traders informed of market trends and conditions that can impact decisions and timing for buying and selling. This provides traders with the ability to react swiftly to take advantage of financial opportunities across national and global markets. Utilization of SureTrader’s sophisticated technology facilitates the quick decisions and lightning-fast trades that make you successful. Desktop and mobile applications ensure timely access to SureTrader services – smartphone access is provided for both iOS and Android platforms. Investors can rely on friendly and courteous support 24×7 to allow execution of trades quickly and efficiently even in after-hours trading.
Contact SureTrader right away to get started doing online trading with the best in online brokers.
Disclaimer: SureTrader Blog is not intended for U.S. persons. Stock information is not to be viewed as buy or sell recommendations.