Online Trading process was following by over 30 million
people with trades valued at over $5.0 trillion! Why do you think you see so
many TV ads for discount brokers?
Since with online trading you can take
control of your investments, save money in expensive broker commissions and
make a higher rate of return on your money than you would otherwise.
It can enable you to retire earlier in life, live a better lifestyle,
and gain a sense of accomplishment and satisfaction at the same time. There is
nothing more thrilling than knowing that you can work within the stock market
to control your future wealth.
Large full service brokers make their money by commissions. It does
not matter whether your stocks go up or down, they still make the same
commission from you. In fact, it is to their advantage for you to trade (buy
and sell) constantly, since they get paid every time you exercise a trade.
And their motivation is contrary to what a beginning
investor philosophy should be: learning how to recognize well managed
companies, purchase their stock, hold them for 6 months, and then re-examine
your positions.
The rewards can be phenomenal if you take it seriously and
decide to control your own personal finances through online trading.
Did you
know if you invested in the stock market for the last 20 years, the average
rate of return on investment would be 15%. Compare that to a 6% CD or a 2% bank
account. Unbelievably you can do much better than that with a little bit of
knowledge.
Online trading and discount brokerage firms allow you to:
track your stocks every 15 minutes, buy IPO's (Initial Public Offerings) and
even trade "after hours". Those privileges were only reserved for the
big brokers in the past, but now you can have those advantages also.
Secured Online Trading
Security is the primary concern of all the major brokers
that offer online trading. They use sophisticated encryption (scrambled code)
devices and also have implemented what are called "secured servers".
These are large computer networks with high levels of security, some of which
are even in vaults with fingerprint recognition for entrance.
In addition, password protection is required, and you must
identify yourself in a number of ways to access your account information by
phone. Many times your phone calls are even recorded for your own protection.
You really do not have to worry about the security of your
account with online trading. You also receive what is called a transaction
number each time you trade, and you can print it out and save it if any
questions arise.
You can open an account with some brokers for as little as
$250. Many of them also offer new customer signups and will give you from $75
to $100 just for becoming their customer.
If you are interested but concerned about some aspect of
trading, start small and "learn the ropes" first. You can even not
invest any money at all, but simply create a dummy selection of stocks
(portfolio) and then track it for a few weeks or months.
Trying to make sense of the new stock trading revolution can
be very frustrating and tedious. There is so much to learn and so many choices
to make, you can suffer from information overload.
You have to decide which broker to choose, which stocks will
be a good investment as well as learn new terminology for the stock market.
Then you have to know how to prevent yourself against fraud on the Internet,
particularly when thousands of e-mails are flying through cyberspace touting
the latest hot stock that promises to be another Microsoft.
Lastly, after you have an account for trading online, you
need to be able to create, track, and manage your portfolio.
Other Resources
MPTrader ETF Trading Diary - Real-time diary of Mike Paulenoff's trade alerts and technical chart analysis for short- and near-term traders using Exchange Traded Funds to play gold, oil, equity indices, currencies, international markets and more. Free 15-day trial.
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