Stock Trading and Investing FAQ

In this section, I have put together a list of general stock trading and investing frequently asked questions. They mostly relate to stock trading but I have put a few in that relate to bonds, options, futures and forex trading. Some of these are written by myself and some have been contributed by others. If you feel you have something to add, please feel free to contact me.

A final note..

Regardless of the instrument you are trading, whether it is stocks, futures, options or forex, it is absolutely imperative that you have put in a considerable amount of time before you start trading live. If you have not traded a particular instrument in a live trading environment before, I strongly recommend that you do some practicing on a demo or virtual account with “dummy” money first.

Many online brokers including Zecco, let you do some paper trading with pretend money before trading with real money. For obvious reasons, it is always better to make your major mistakes on a demo account rather than real money. Personally I always like to try out a trading platform on a demo account first, so I can get used to it. I’d hate to make a mistake like buying 1000 shares rather than 100 just because I wasn’t used to the platform!

All types of financial trading involves a degree of risk, for new traders the risk is even higher. This is not to say you cannot earn great returns from financial trading, but usually this can only be achieved consistently with a lot of practice and experience.

If you are looking for more information  about stock brokers, feel free to wonder over to my Online Stock Brokers page. On this page I compare different brokers to make sure you are not paying more than you need to for your trades. Trading is about earning good returns on our money, not making greedy brokers rich.