Thursday, October 15, 2009

How to Buy Stocks Online Today

By Mike Singh

The Internet has definitely made life and making money easier and faster. Nowadays, you can buy and sell stocks of any publicly-traded company you want to invest in, whether it is a blue-chip organization or a recent IPO. Doing so is so easy to do that you will ask yourself why you did not think of it sooner!

Open an Online Account

The first step in trading stocks online is, of course, to open an account with an online stock brokerage site. If you are just starting out, it is wise to go for the big names in the industry for the simple reason that you are assured of the wide breadth and depth of experience from the stock brokers handling your investments. You can also look for additional services that will make tracking your investments and making wiser decisions easier. You may ask for a full-service online broker that will provide for personalized attention in the form of face-to-face meetings and phone conversations. And if the site has a physical location, then better for you, too.

Using Your Account

Once you have opened your account, you can start trading with it. The steps are relatively simple, too, when broken down as follows:

* Enter the ticker symbol of the stock you want to trade in

* Click on the "Buy Stock" icon

* Enter the number of share you want to purchase

* Determine your option in the "All or None" portion

* Select the order type

* Enter your limit price

* Choose the duration of the trade - either end today or valid until cancelled

* Review your order and then execute the purchase

Now, that was easy on its face value. However, you must remember that you are trying to buy stocks for cheap (i.e. low) and sell them at a higher price for a profit.

Tips on Trading

While we are on topic, you will do well to remember a few tips from successful stock traders. First, always have an entry and exit strategy. If your plan is to profit from a certain stock for a thousand dollars, then sell it as soon as your expected profit reaches that point. If you can only handle a $100 loss, then cut your losses at this point. Second, always rely on your informed judgment based on technical and trend analysis, never on your emotions and on hot tips and insider information. More often than not, you will trade at a loss if you do succumb to emotions and unverified information. Third, always go with the trend. However, you should not waste time on analyzing why a trend goes a certain way, whether it is to your favor or not. The market will move up or down and it is not for you to question why - yours is to make your move based on how you interpret said movement will affect your investments.

Buying and selling stocks online via an online account can be fast, easy and rewarding when you know what to do. You must educate yourself on the ways that the stock trading world operates. Visit to learn more.

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