Interested in breaking into online stock market trading? Below you will find a 12-step guide to help you in your endeavors.
1.Necessary Tools:
a.a calculator (scientific calculator not necessary unless you know how to use one)
b.a computer with a good processor, high-speed internet connection, an adequately-sized monitor
c.spreadsheet software (such as Lotus 1-2-3 or Excel)
d.security protection
e.and a color printer (to print graphs/charts when necessary)
2.Once you have all of the tools necessary to get started with online stock market trading, the next step is to open an account with an online trading brokerage. Your account is not only for the buying/selling and trading of shares. You can also access up-to-date stock market information and resources such as educational training programs offering information on familiarizing yourself with online stock market trading and how to be successful.
Don't just choose the first brokerage you find, instead do your research- find out about the commission fees and all other service charges. Don't want to look around? Some online stock brokerages offer side-by-side comparison of the various online brokerages.
3.Now that you have an account set up with an online stock market trading company, you should spend some time researching different investment strategies. Whether in print or online, there is a wealth of information available to beginner traders.
4.Write your trading plan down. Writing it down will help to solidify your goals when trading online. It will help to remind you of the valuable information you have learned such as when to buy, how much to trade on a share, when to get out (or sell) a share and other pertinent pieces of information you have gathered.
5.Be sure that you have acceptable trading candidates and access to a reliable stock scanner. This should be available to you by your broker.
6.Before you begin to actually buy and sell shares with real money via online stock market trading, it is advisable that you practice beforehand. Practicing with paper trade stocks is a good way to help you assess the strategies that you have developed and determine if they need to be altered in any way. You may also learn new strategies that could help you in the long run.
Paper stock trade is a great dry run for real stock trading. It involved keeping a pen-and-paper portfolio and "trading" shares, without investing any real money. It is a great way to build your confidence (and "experience") so you do not jump into the stock trade blindly.
7.Be sure that you are knowledgeable about the stock market trends. It is in your best interest to investigate the direction of the markets- is it an upward moving market or a downward spiral? It is better to buy into a market that is moving upward since buying into a downward moving market will only work against you and any trades you may make in the long run.
8.Know how much capital you want to trade in each stock before you begin to buy/sell/trade shares.
9.Know about the incubation period, which occurs right after you purchase a stock. During this time a stock will both grow and flourish or not. If it does- great, if it does not, you may need to look into a different stock.
10.Have an exit strategy, meaning, know when to get out of a stock. Also, know when it would be a good time to buy more stock. Knowing when to exit (or sell) a stock helps to protect your financial investment. One example would be choosing to buy based on percentage gain and price strength of a share. Another example would be choosing to sell based on percentage loss or the buoyancy of a certain stock.
11.Be sure to keep record of your shares. The only way to be successful in online stock market trading is to find a way to improve your strategies. One suggestion would be to print a chart after a trade is closed. Look over the chart and find areas for improvement during future trades. Use of the chart will also help you decide if you are adhering to your trading goals.
12.Continue your education. More important than anything else, you should remember that the stock market is ever-changing and continuing your education will keep you top of the curve and increase your chances of being successful in the market in the future.
And that's it. Online stock market trading in twelve easy steps.
1.Necessary Tools:
a.a calculator (scientific calculator not necessary unless you know how to use one)
b.a computer with a good processor, high-speed internet connection, an adequately-sized monitor
c.spreadsheet software (such as Lotus 1-2-3 or Excel)
d.security protection
e.and a color printer (to print graphs/charts when necessary)
2.Once you have all of the tools necessary to get started with online stock market trading, the next step is to open an account with an online trading brokerage. Your account is not only for the buying/selling and trading of shares. You can also access up-to-date stock market information and resources such as educational training programs offering information on familiarizing yourself with online stock market trading and how to be successful.
Don't just choose the first brokerage you find, instead do your research- find out about the commission fees and all other service charges. Don't want to look around? Some online stock brokerages offer side-by-side comparison of the various online brokerages.
3.Now that you have an account set up with an online stock market trading company, you should spend some time researching different investment strategies. Whether in print or online, there is a wealth of information available to beginner traders.
4.Write your trading plan down. Writing it down will help to solidify your goals when trading online. It will help to remind you of the valuable information you have learned such as when to buy, how much to trade on a share, when to get out (or sell) a share and other pertinent pieces of information you have gathered.
5.Be sure that you have acceptable trading candidates and access to a reliable stock scanner. This should be available to you by your broker.
6.Before you begin to actually buy and sell shares with real money via online stock market trading, it is advisable that you practice beforehand. Practicing with paper trade stocks is a good way to help you assess the strategies that you have developed and determine if they need to be altered in any way. You may also learn new strategies that could help you in the long run.
Paper stock trade is a great dry run for real stock trading. It involved keeping a pen-and-paper portfolio and "trading" shares, without investing any real money. It is a great way to build your confidence (and "experience") so you do not jump into the stock trade blindly.
7.Be sure that you are knowledgeable about the stock market trends. It is in your best interest to investigate the direction of the markets- is it an upward moving market or a downward spiral? It is better to buy into a market that is moving upward since buying into a downward moving market will only work against you and any trades you may make in the long run.
8.Know how much capital you want to trade in each stock before you begin to buy/sell/trade shares.
9.Know about the incubation period, which occurs right after you purchase a stock. During this time a stock will both grow and flourish or not. If it does- great, if it does not, you may need to look into a different stock.
10.Have an exit strategy, meaning, know when to get out of a stock. Also, know when it would be a good time to buy more stock. Knowing when to exit (or sell) a stock helps to protect your financial investment. One example would be choosing to buy based on percentage gain and price strength of a share. Another example would be choosing to sell based on percentage loss or the buoyancy of a certain stock.
11.Be sure to keep record of your shares. The only way to be successful in online stock market trading is to find a way to improve your strategies. One suggestion would be to print a chart after a trade is closed. Look over the chart and find areas for improvement during future trades. Use of the chart will also help you decide if you are adhering to your trading goals.
12.Continue your education. More important than anything else, you should remember that the stock market is ever-changing and continuing your education will keep you top of the curve and increase your chances of being successful in the market in the future.
And that's it. Online stock market trading in twelve easy steps.
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