Online Trading Options
The Internet has changed the way people choose and manage their investments. Online discount brokers allow independent investors to buy and sell stocks for less than $10 per trade, while mutual fund companies and 401k administrators make it easy for investors to choose the right vehicles and move money with the click of a mouse.
Other People Are Reading
-
Mutual Funds
-
You can set up online access to your mutual fund account and use that access to move money between funds as you wish. Some mutual fund companies impose limits on the number of transactions you can make, but others allow unlimited trading. In some cases you will only be able to buy and sell funds within the same fund family, but other firms allow you to buy and sell funds across families.
Brokerage Accounts
-
If you have an online brokerage account, you can use that account to buy and sell stocks, but also to screen stocks and find companies that meet the criteria you set. For instance, you can use the stock screening tools to find companies that have raised their dividends each year, or companies with dividend yields above 5 percent. You can also screen stocks based on other criteria, including earnings per share, volatility and insider ownership.
-
401k Plans
-
If you have online access to your 401k plan, you can use it to buy and sell mutual funds within that plan. You can use your online access to allocate future contributions, change the balance of current monies and shift money around between fund options. You can also view prospectuses for the funds and check performance history.
Limit Orders
-
If you are trading stocks or exchange-traded funds (ETFs), you can use limit orders to get in and out at the prices you set. For instance, if a stock you are watching is currently trading at $25 a share, you could set a limit order to buy that stock if it goes down to $20 a share. If the stock never reaches that price, your order is never filled. But if the stock does reach that price, your purchase automatically goes through. You can do the same thing on the sell side by setting a price that automatically locks in the profit you made. You could, for instance, set a limit order to sell that stock you bought for $20 when it reaches $30 per share. You can set a "good for day" limit order that expires at the end of the day, or a "good til canceled" order that stays in place until you remove it.
-
References
- Photo Credit stock market analysis screenshot image by .shock from Fotolia.com
