How to Invest Online Instantly

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By Cinda Roth
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You can invest online and take advantage of the down market now. Here is how.

Difficulty: Easy

Instructions

Step 1

The first thing to do is to decide how much that you can save and invest. You can’t invest or develop an investment plan if you do not have any money or do not know how much you can get together to invest. Typically you need a minimum of $500 to start an investment account.
Step 2

The next thing to do is to learn the terms for types of buys and sells. The easiest way to do this is to go to the buy/sell screen on Scott Trade or other online stock brokers and click on their glossary. This typically gives you a clear up to date summary of every term you need to know.
Step 3

Now you want to familiarize yourself with the risks and the returns that you incur when investing. Check the S&P and DIJA and look at the rates of returns on these markets. Chances are unless you are a very good (or bad) and/or lucky (or unlucky) investor this is the return you will likely get.
Step 4

Now you want to get a feel for how much risk you can afford and for how long. Think about if you are saving for a house, car, or retirement and when you plan to make these purchases. The sooner that you need to take money out, the less risk you can take in stocks.
Step 5

Now you are ready to set up an online brokerage account with someone like E-Trade or Scott Trade. You just go onto their website, fill out a simple form and either send a check or do an electronic transfer of funds and voila, you are ready to trade.

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