How to Stock Trade Online: Online Stock Trading for Self-Directed Investors
An online stock brokerage offers stock trading and investing advice -- just as your local brick-and-mortar brokerage does -- but also allows for anonymity. Plus, with an online account you never need an appointment and have 24/7 access to stock information.
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Instructions
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In order to execute online trades, you need an understanding of the basic principles of buying and selling stock, the ability to navigate websites and conduct research and the willingness to deposit money into an online account.
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Many of the online stock brokerage companies that are well-advertised have track records which began before they started offering online stock trading. You will recognize them as companies that also have brick-and-mortar locations. If you are nervous about conducting your first transactions online, consider meeting with a stock broker in the office first. Ask her questions about commissions, fees, minimum deposits, features of the trading platform and how to contact them should you need help. Select the online brokerage that has the best combination of services and low fees.
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To open an account with an online stock brokerage, you will have to provide sensitive financial information and sign contractual agreements. (If you have any questions about the legal documents you might sign, consult with an attorney.) Once you are satisfied, open an account with at least the minimum required balance.
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Once you begin online trading with the brokerage of your choice, familiarize yourself with the web trading platform. Locate important account information, such as your positions; account balance; how to research companies listed with the stock exchange; how to view your gains and losses; how to view your pending online trades; and how to receive trade confirmations.
Once you're comfortable with the site's features, you're ready to make your first online trade.
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Tips & Warnings
Never invest more money than you can afford to lose.
References
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