Online Share Trading: An Introduction

2007-03-08 10:33:40

( Web Hosting-SEO-Web Design )



For many of us, online share trading might seem to be the exclusive province of the economic and intellectual elite. It seems that only the rich and well-educated can take part in the wave of trade and business sweeping the Internet. But the truth is that technology has made the stock market more accessible to the common man, and not the other way around. With the personal computer revolution in full swing, anyone who can click a mouse can now participate in the various financial markets in the world. Online share trading is only one of the many investing options available, but it is a very important one.

Of course, you should not embark on a financial adventure without taking adequate financial preparation. Preparing to delve into the stock market will require you to study, even for just a little bit. The adage “Knowledge is power” is nowhere more true than in the financial markets. Whether you’re into online share trading, online futures trading, online options trading, or online commodities trading, you will have to do your homework if you want to make money. Too many people neglect this step and lose entire fortunes. Do not be one of them. If you have neither the desire nor the time to study the markets, be sure to ask for professional help. This will cost you money, to be sure, but not as much as when you jump into the market carelessly.

To start trading shares online, you must open an internet account with a brokerage firm. A brokerage firm may charge anywhere from a few hundred dollars to a few thousand to open an online share trading account. Different brokerage firms also offer different rates for carrying out trading commands. Prices here can range from the dirt-cheap five-dollar brokers to full service 200-dollar ones. Be sure to compare the many offers available to you, and choose one appropriate to your financial situation.

Brokerages are the middlemen between you and the stock market; they are responsible for carrying out trading commands (such as buying and selling a stock.) For his services, your broker will receive a commission – a percentage of the total dollar value of your buy/sell order. A good broker will take a little time to educate you about online trading. Remember that you are paying him your money; the least he can do is to help you become a better investor.

There are many brokerages in existence today. Be sure to choose one with a good record. Make sure you are trading with a long-standing, respectable firm -- you do not want to be taken in by online swindlers.


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