The Internet revolution has affected almost every part of the fabric of our lives including
online stock trading. Although it may seem fast and easy, there are some dangers to trade online. Chief of these is
the fact that it is almost too easy to execute a trade. Like casino chips, the numbers up on the screen do not seem
like "real money" but it is. Nothing can make it plainer than checking your account balance and seeing it
Learning to use the new online trading tools provided by your broker doesn't take very long. In a couple of
mouse clicks you can make a decision that can cost, or make, you many thousands of dollars.
Brokerage fees vary among the different companies. Brokerage houses such as Ameritrade, DLJdirect, SureTrade,
Datek, Charles Schwab, E-Trade, and others seem to be regularly engaged in price wars to lure new online investors.
WHile the average fee ranges from US$7 to US$9.99, there are others offering fees as low as US$1.99 per trade if
you are a heavy trader. Keep in mind that fees alone are not a good reason for selecting a broker. Other issues
such as speed of execution, ability to contact a real broker when you need one, and other service issues play just
as important a role.
What does it take?
Well, all you really need is an online brokerage house, a computer, internet connection, and some money to
invest. In reality, you need a lot more however. You need to understand the rules and laws of investing, the
psychological conflicts that affect traders, and general knowledge of economics and how it affects the stock
market. If you don't take the time to get some basic investments education, then it is likely that you will end up
being part of the statistics that say more than 80% of all online investors lose money right form the start.
If you want to be part of that other 20%, the ones who make money, then you need to exercise judgment and become
disciplined in the art of online trading.
Your investing style determines, to a great degree, whether you will be a winner or loser in the game. Will you
be a long-term investors who buy stocks and holds them for a year or two? Or maybe you will be a mid-term investors
who turns over a stock in anywhere from thirty days to six months. Short-term traders trade on a weekly basis, and
day traders buy and sell every day.
Experienced investors study stock charts, review company announcements, look at the profit and loss statements,
and examine other financial indicators. It work just like anything else that makes you money, looking for hidden
trading signals that may reveal a major opportunity.
The Pros And Cons To Online Stock Trading
The ability to trade stocks online, via the Internet, is a fairly new phenomenon that has provided the
opportunity for literally millions of new investors to diversify their investment strategy, both long-term and
short-term, and have the chance of investing in stocks listed on almost every single stock exchange around the
world. It has not, however, been without both its detractors and its failings. Indeed, many of the
positive aspects of trading stock online can equally be seen as a failing of the system. In the following
articles we try to set out what some of the pros and cons to stock trading online are, along with a brief 10
step-list of how you should conduct your online stock trading if you wish to avoid some of the failings in the
Be sure that you are prepared and only invest money that you can afford to lose. Online trading can become your
worst nightmare if you start betting the mortgage money. Otherwise, with patience and a goal
towards ongoing education, you may find that this is a good way to add to your wealth.
Recommended Resources ...
MarketClub is an online charting system that is constantly scanning 230,000 symbols with buy or
sell signals deigned to help traders research, get in and out of trades as quickly and efficiently
Researching and planning trades can take hours, and let's face it, traders don't have hours to
waste. What you need is a tool to give you an edge on the markets and to help you make educated
decisions based on the technicals and not your emotion. MarketClub puts all of your research tools
in one easy to use package that together gives you the edge you need to build and manage your