Everything in this world is now a single click away. Pessimists might say that it has made lazy. Why beso? Isn’t it rather a necessity now?
With the second-by-second changes in the dynamic stock market, online shopping or online stocks is not a luxury. Nonetheless, given their inevitable importance, it is important to know: “How to do?”! Below is a list of some basic tips that will guide you in the process:
1. Choose an online broker depending on your background
There may be a big list of the online brokers available but you should choose one that best suits you. Most charge hefty commissions so you should know the services you want from them. If you already have ample knowledge about stock trading, you may not require a full fledged broker. However, if you think you are newbie in the field, try going for a safer option where they will guide you at each step.
2. Give the website layout due consideration
This may look un-important but believe me, once you start trading you will know it is. Even if you are a technical savvy, go for a website that is easy to navigate. Too busy screens and flashy colors may not be uncomfortable in the beginning but will be so once you start spending hours on it. Also ensure the website does not have any delays, as delays mean you are devoid of the benefits of instance and speed you wanted to have via the internet.
3. Start from demos and tutorials
Learn from the tutorials and live demos available at the websites. There is also an option of being the silent spectator or creating dummy accounts at a lot of websites. Learn, what actually, is the market activity at the back that triggers the price change of stocks. Take care that you do not get caught up with emotional phrasings about companies’ during your research and start investing big in the very beginning. Always start with smaller risk and then move on, once you have the experience.
4. Don’t clutter yourself with results every instant
Tracking moment by moment information and price changes is good but don’t let it confuse you in decision making. You may want to wait till the day end or week end, have a thorough analysis and then decide whether to trade.
5. Invest in companies that you know of
Yes, you are on a global platform now, but that doesn’t mean you should trade for a company located at the other side of the equator. You can go for companies that have global operations, study their results all around the global stock markets, but, they should be the ones that you have knowledge of. The best is to start with those that you see around regularly.
6. Look in for options other than the regular stocks
Depending on your needs think more than just shares or mutual funds. Opt for the brokers that have wider options such as long -term investment options or savings plans.
7. Marketing is good but publicity of shares may not always be a positive signal
Firms that spend on advertising and marketing of their products have higher chances of being lucrative, but those having publicity hype about their stocks may not always be profitable in the long run. For those who have already bought, prices will go up and be beneficial, but if you have yet to buy, it may be the price hike time of the stock.
8. Keep regular checks
Most websites have electronic calculators but don’t just rely on them. Moreover, keep regular checks of your account balance and be ware of any hidden costs or extra charges the brokers may be charging.
9. Put up automatic limits on amounts and timings through the broker
Many online brokers provide the facility where you can set a threshold amount of your stock and the broker will automatically sell if the stock price reaches that value any time of the day or week. You can also set limits to stop you from buying at a certain amount level of your account.
10. Evaluate your performance
You may think you are doing great as you had loss yesterday and profit today. But the key is to set goals and evaluate your self. Where are you moving to? Did you meet the investment aims you had when you started?