For many in the U.S., trading stocks on the stock market is like reading a Greek manuscript. There’s little understanding among blue-collar individuals in the nation, and this lack of knowledge could be cheating you out of thousands of dollars every year.
You have the right to knowledge, and the technology at your fingertips can make you and your family a whole bunch of money. Take a moment now to read through a short overview of a few tech tips for trading on the stock market, and start making money today.
Don’t try to skirt around the rules
It’s very important that you don’t try to “bend” the rules when it comes to trading stocks online. Bending rules can lead to some very serious legal consequences, and you don’t want to be the recipient of those charges.
In fact, do plenty of research to make sure you have a firm grasp on the laws regarding online stock trading. Anytime you’re dealing with terms of money, you need to be extra careful to cross all the t’s and dot all your i’s.
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Find the right e-trading platform
Making the choice to forego a face to face relationship with your broker, online trading means you’ll have to choose the most suitable e-trading platform to begin building your personal portfolio.
Etrade and Ameritrade are the most popular online trading systems, but there are many large brokerage firms who sport their own online platform for trading. Your success here depends upon the amount of research you’re willing to perform.
Set up a brokerage account
Once you’ve found your most favored e-trading platform online, you’ll need to set up a brokerage account, such as a share dealing account for future investments and trading. Opening a brokerage account is similar to the process of opening your own bank account.
You will be asked to show proof of identification, deposit some funds to get started, and set up a backup funding option to cover any deficits incurred. Once you’ve got your account all set up, you can begin turning your mind towards what types of stocks you are looking to buy.
What a broker really does
Most people have no idea what a stockbroker really does on a day to day basis. Why do you even need a “broker” to trade on the market? Well, your broker is the go-between for you and the business.
Your stock broker will take your interests and your money, listen to what you want out of the transaction, and make the deal on your behalf. You can choose to make either a “market” order, or you can choose to make a “limit” order.
Know a bit about the “lingo” before you begin throwing your money around online. When you make a “market” order, you’re asking your broker to purchase a set amount of stocks for the price in which they are currently selling.
When you instruct your broker to make a “limit” order on a stock, you’re telling them that you only want to make a move on purchasing the stock once the price hits a certain number.