Online Share Trading

When you first start online share trading, you have some very important questions to ask yourself such as:

  • Which broker should I use?
  • How much risk am I prepared to take?
  • Which stock market sectors am I interested in?
  • What kind of returns would I be satisfied with?
  • Which time periods do I went to trade?
  • Do I want to trade on fundamentals, technical’s or both?
  • Am I fully aware of the risks?
  • Do I have risk capital?

Only by taking an honest look at your unique situation can you begin to develop an investment strategy.  Your answers will determine what types of securities you will invest in, what types of orders to place, and what stock broker to use.

Online Share Trading: Choosing A Broker

Make no mistake about it, share trading is just running a business. You need to have a solid plan that can firmly answer all of the above questions.

If you can answer these questions confidently and realistically, you may be ready to find an online share trading account. When choosing an online trading account you will need to consider what types of securities you would like to invest in, the fees and commissions the brokerage charges, and your available capital for investing.

Feel free to visit my discount stock brokers page. On this page I analyze many different stock brokers to help you  compare online share trading costs.

I cannot stress enough how important it is to find the  best online share trading broker for your trading style.  Some brokers charge less than $5 per share trade whilst others charge in excess of $20! I’m sure you can imagine how this kind of price difference can quick effect the money that ends up in your pocket!  Also, keep in mind that not all brokerages offer you the ability to invest in every type of security, such as penny stocks, so make sure your brokerage allows you to invest in the types of stocks your trading plan calls for.

Education Is Everything

If you are not yet ready to begin live share trading, the next step is to get some further share trading education. Remember, when it comes to stock trading, failing to prepare really is preparing to fail. Make sure you have a good understand of factors such as:

  • Broker fee structures
  • Stock market sectors
  • Stock trading risk management
  • Technical analysis
  • Fundamental analysis
  • Dividends
  • Blue chip and growth stocks
  • IPOs
  • Short selling

If you need to further your education, feel free to go over to my stock trading basics page.Now on for some of my share trading tips.  Remember, only begin share trading when you can answer all the above questions.

Practice Makes Perfect

Spend time practicing your trading on an online share trading game before you trade with real money. For more information on this visit my simulated share trading page.

Sometimes share trading software can be a useful aid to trading. Whether it’s in the form of charting software or software to help you pick sticks, it is always better to practice with fake money rather that lose real money.

Examples of software to help you pick stocks includes:

Marketclub Stock Assault

Examples of share charting software include:

As well as reading websites like this one, there are many good share trading books available to help you, and you should utilize all available resources to make sure you are as educated as possible on both the fundamentals of share trading, as well as each potential investment. I talk more about these on my stock trading books page.