Stock market investing and trading is no longer limited to the guys who hang out at the brokerage house; online trading is available anytime, anywhere on your computer. Online trading is great for people who want instant access to the market and the ability to respond to price fluctuations. Whether day trading or a long-term investing, online traders can maintain control over their investments whether in town or traveling.
Online traders need to keep accurate records of online transactions since there is no stockbroker in the background keeping records for you. Those records will also be necessary at income tax time. Reviewing your trading records can help find mistakes to avoid or strategies to repeat.
Stock trading often involves the use of technical analysis to determine the best time and price for entries and exits and is typically more hands-on that stock investing. The length of the trades is shorter (last anywhere from a few minutes to months) and requires more frequent monitoring of positions.
Some online companies charge a membership fee that entitles the trader to other lower fees. While others reduce their fees if the trader maintains a minimum balance on their account. Some sites offer free days based on their volume. So for the day trader this is totally worth checking out.
This method can be an extremely profitable (do your homework and have a plan before you commit your money). Plus it’s convenient, inexpensive and easy to access. It’s a great way for novice investors to get their feet wet from the comfort of their home computer. Whether finance major, business owner, retiree or homemaker, this could be for you!