Online Stock Trading - Finding The Right Broker

The evolution of the internet made a host of great changes for the better in the way we perform many everyday jobs at home and at work.

Stock trading, once the domain of a select few stockbrokers, is now accessible by anyone with the required finances, and a computer with internet access.

The main attractions of Online Stock Trading are the significant reduction in both, the transaction costs, and time involved. Once you have set up an account with an online broker, a transaction can be undergone almost on the spot, and for only a few bucks per trade.

Everyone else has a “Top 10 List”, so here are my “Top 10 Points To Consider Before Selecting Your Online Broker”!

1. Find out if the stock quotes and account updates you receive are real-time or delayed. Most services have some sort of delay. Real-time quotes are usually available, so find out if they are, and at what cost, if any.

2. Some online brokerage firms specialise in certain types of securities. Some specialize in penny stocks, some only trade the major markets, some trade overseas, some specialise in options. Make sure your chosen brokerage firm “really” know your market.

3. Check out the procedures for entering and canceling orders (market, limit, and stop loss). Familiarize yourself with all your brokers procedures so that the administration of your account goes as smoothly as possible.

4. If you are contemplating a margin loan, check out the conditions and rules. Margin loans are dangerous for even experienced investors, so tread warily. Remember, margin accounts can be called in at the whim of the brokerage firm.

5. Make sure that the firm has an alternative way to execute trades if their website happens to be offline. Most will allow phone calls directly to brokers for no additional fees in the case of computer problems.

6. Take a look at the brokers privacy and personal information policies. The last thing you want is a flood of junk mail from the “quick buck” merchants. Most reputable firms won’t sell your personal information, but it pays to be sure.

7. Look very closely at their brokerage commissions, transaction fees, and conditions that apply to any advertised discount on commissions. Check for any hidden fees or penalties in the fine print. Double check anything that looks too good to be true.

8. Test their customer service. Don’t take their assurance of quality service at face value. Make an enquiry by email and test their response time. Call them with an “interesting” question. It’s no use finding out later that they have an answering machine, and don’t return calls or emails for 3 days.!

9. Check with your local securities authority to verify the legitimacy of the online brokerage firm and any disciplinary history they may have. If they are on any securities watch list, find another firm, quickly. The website at www.sec.gov is a good place to start.

10. Ask for testimonials. You need to know that they have a string of satisfied customers. You’re going to invest your hard earned money, so you need to see proof of their ability to deliver the service you require. If they can’t, or won’t show you the proof, move on.!

All the really cool lists have a bonus tip, so here’s mine, and it’s biggy!

11. Educate yourself. The well educated investors make their money off the uneducated investors. Luck will only carry you so far. You need to be a smart investor to survive and profit in the long term.

This list is so cool, I’ve decided to throw in a bonus bonus tip!

12. Take your time. Take your time before you jump into stock trading in the first place. Take your time choosing your online broker. Take the time to do your own market research. Take the time to learn all you can about the market you want to trade in.

As with anything else you do that involves money, you need to do a little homework to make sure that you find the online broker that best serves your needs, at a price you are happy with. Some research up front can save you a lot of time and money in the long run.

Online Stock Trading - Is It Right For You?

Online trading has exploded in popularity as telephone charges and broker fees have collapsed and internet bandwidth has soared. Combine this with the recent trend away from corporate environments in favor of working from home, and you can see how online trading has become both a viable business and an ideal lifestyle.
Online stock trading (or even stock futures trading) follows the same principles as traditional trading as far as the fundamentals are concerned. You are still buying or trading the same stock instruments from the exact same stock markets.
The difference with online stock trading is that you no longer call into your broker to place your trade or for information. Instead, you use your computer (with a fast internet connection) to log on, analyze the markets, view your existing stock portfolio, and make your stock trades totally via the internet. In online trading, there is no need to talk to anyone at all, if you don’t wish to.
Here are some of the main advantages of trading stocks online:
1) Pay less in commissions by using a Discount Broker, because you are not paying for telephone trades or unnecessary research.
2)Rapid trade execution. You do not have to wait for your broker to execute the trade for you. You can buy or sell the stocks directly online with just the click of a mouse.
3)Make smaller share purchases. This opens up the market to more people who cannot afford to invest in large positions.
As a result of all this, online stock trading does not require a large financial stake to be able to participate in the stock market. These are just some of the advantages to trading online.
However, there are some disadvantages. Computer breakdown is a real risk, and tends to happen when you can least afford it, i.e. you have an important trade on. The reliability of your phone line is obviously critical too, and these are particularly vulnerable during or after bad weather.
Online Trading: How To Start
The steps to commencing online stock trading differ according to your experience level. If you have offline trading experience, it is a relatively minor switch to go to online trading. If you are completely new to market speculation then you will have to start from the very beginning.
First of all, you have to decide if online investing is right for you in the first place. Online stock trading is not for everyone. If you’re a timid person, a poor or slow decision maker, or if you are unsure or lack confidence in yourself, then stock trading is probably not for you, either online or offline.
Remember that real money is at stake – YOUR money! Hence, it is critical that you learn as much about investing as you possibly can. The more you study and learn about the subject in general, the better you will grow at trading online and the more successful you can be.
All that said, one of the key advantages to online trading is that you can trade smaller share sizes. Hence, there is less risk involved if you begin like this. Then you can work your way up to larger positions as you improve and your account size grows.
In conclusion, there are strong benefits to online investing. Trading online gives you the chance to work from home, take personal control over your investments, and engage in a fascinating activity, all at the same time. It can be very rewarding to do your own investing and fun to do from the comfort of your own home. Hence, online stock trading is definitely a worthwhile, profitable and very valid business model.

Online Stock Trading Strategies ? Select the Right One

 

Stock markets are mercurial in nature and are highly sensitive to any happening in the world whether it relates to politics, religion, finance. So dealing in stock markets using productive online stock trading strategies is a must. These strategies allow traders to understand and analyse which stocks should be purchased and when they should be sold to protect their invested dollars.

There are innumerable online stock trading strategies in the market but some of them stand out from the rest. New traders are strictly advised to follow them to see the difference for themselves. Some of the basic ones include hedging, dogs of the Dow, buying on margin, and dollar cost and value averaging.

Hedging is useful for you when you aim to protect your capital. Hedging gives protection to your investment by minimising the risks involved in holding a specific stock. The risk that the stock price will come down can be set off by purchasing a put option that authorises you to sell the stock at a specific price within a certain time period. In case stock comes down, put option value will rise. If you want to hedge against market falls, selling financial futures such as the Standard & poor’s (S&P) 500 futures can be the right option.

Dog of the Dow is also one of the online stock trading strategies wherein the concept is to purchase the best-value stocks in the Dow Industrial Average by selecting stocks that have the lowest P/E ratios and the highest dividend yields.

 

Buying on margin is one of the risk-prone online stock trading strategies, and it involves purchasing stocks with money lent out by stock brokers. The margin amount should be restricted to around 10% of your total account.

Dollar cost and value averaging strategy includes pooling in a fixed amount of dollars regularly such as buying shares of a mutual fund every month. This strategy can be used with a broader trading strategy to secure your investment fund growth.

Determine if Online Stock Trading is Right for You

Shopping has became a whole new term. What used to be bought and purchased in physical stores can now be accessed in your own home. And it is not just everyday things that you can buy but also bigger commodities like real estate properties, and even stocks.

Yes, you heard it right. Nowadays, buying and selling has stocks can be done online. All you need to do is to have a reliable and speedy computer and internet connection and you can be on your way to becoming an online stock trader.

But of course, just because online stock trading is very popular these days, it does not mean that it is for everybody. To know if this is right for you, here are some things to keep in mind regarding this matter.

1. You’re a little tight when it comes to time.

Most people opt for the online route when time is not so much of an abundant resource. The traditional way of finding a broker, communicating via phone or personal meet-ups can consume a big chunk of your time. If you have a full-time work, business, or anything else that keeps you very busy during most hours of your day, it would be a great idea to skip the traditional route and go online.

2. You’re internet savvy

Technophobics would have a difficult time doing online trading. Since it is online, it requires the use of Internet and if the Internet for you is an extraterrestrial area that you never want to explore then chances are, you won’t enjoy much success in this industry. Online trading requires the use of an online trading platform, opening an online account with a brokerage firm, and browsing through hundreds of online resources for you to get started. Without sufficient knowledge about the Internet, you will really find it hard to get around.

3. You can learn on your own

Like the traditional stock trading, online stock trading is also a never-ending learning process. Even if you deem that you are already well-versed with the rudiments of stock trading, you still need to continue studying and learning about it to improve and expand your knowledge and skills so that you will be able to make better decisions.

If you for the online route, you should be able to learn on your own. You need to be able to do your homework, study about it by yourself, read books and online stock trading newsletter, and learn the ins and outs in your own time. Yes, from time to time, you can ask help from finance experts and professionals but mostly, you would only be able to depend on yourself.

4. You have the stomach for volatility

The stock market, as we all know, can be volatile at times. Some win big, others lose some. It is sometimes very hard to predict and that even if you have exerted much effort into ensuring that you make informed decisions, it is possible for you to still lose money. If you are prepared for such scenario then you may be apt for an industry like online stock trading.

5. You want to enjoy lower fees

The online route is also suitable for people who are looking for lower fees and commission rates. Just make sure that you find a brokerage firm that not only charges low fees but more importantly can offer reliable service.

With the advent of the Internet technology, a world of possibilities opened up in terms of information dissemination, educational advancements, and commercialization of products and services.

Push the Right Buttons With an Online Stock Trading Game

This article will discuss a little bit on the emerging phenomenon of the online stock trading game. Strictly speaking, the commodity trading market is actually on of the harder markers to forecast and this is because of the immense amount of information that is available on it. Just by looking at a sample of the trading market chart and the actual market readout, the uninitiated will be overwhelmed with the complexity of reading the market and trying to make any sort of sense of the diagrams and figures that are constantly popping out at you can be quite a task.
Of course, just like driving, no one should be getting into the car without going for a lesson or going for a test drive, in the case that they might just end up at the bottom of the cliff in a burning heap of twisted metal. This is how your expedition into the paper trade might pan out if you do not heed the warning signs and learn all you can about the market conditions and what you need to know about the market before you start your journey. The truth of the matter is, sometimes, these training programmes and dummy accounts can be quite a hassle, and depending on how patient and how diluted the approach of your broker is, you might not be getting the full treatment and guided tour of everything there is to know about the market.
Sure, making money is always a good motivation when it comes to learning something, but there must be a way so that learning can be much more interactive and less tedious than some of the systems and simulated trading environments on offer – as while they have been successful until now, it is not for everyone. What you need is a system that makes learning how to trade interactive, dynamic and even in some cases designed in such a way that the user will try to do his best possible. Some smart engineers and mathematicians put their heads together and the latest incarnation of these ideas seem to have given birth to the online stock trading game.
This is a fantastic idea and it has ushered in an era where learning about stock and commodity markets have become much more interactive and much more drive, Because now beginner investors now have to keep score and battle the ‘enemies’, this dynamic and interactive environment has made learning about the online stock trading market that much easier. They have been gaining more and more popularity because most users find that they learn easier and are even able to develop strategies when using this game. It forces them to use their critical faculties and formulate ways to get past certain difficult levels and it is a question of some pride when they are able to post a high score and graduate from game to the real thing. So push the right buttons, make some money and have a new perspective on the online stock market with the online stock trading game.