How to Make Money Trading Stocks Online

The first point to understand is trading stocks online is a business that contains risks and should someone tell you this is not true, they are either ignorant or lying. Share prices can rise as well as fall and there are no sure fire winners. However, if you pay attention to the markets and follow professional advice you can understand that buying and selling decisions should be made by the head not the heart. Learning a self-disciplined approach is vitally important and once triggers are set off you should take the appropriate action as planned. Greed and online stock trading do not work well together; follow your plan and expert advice. In addition, do not hang on too long before making your buying or selling decisions.

Getting started with online stock trading
Before doing anything or starting trading online, it is important to do your homework. There is plenty of information and advice that you will be able to find on the internet. Some information is freely available and in some cases you can decide to pay to follow a course. Should you follow the advice carefully you could actually make your money trading online, allowing you to give up your job and become your own boss.

There are a large number of stocks trading markets websites to review. Once you have your computer and set up your internet connection, you can get started reviewing the different markets and what they offer. You will get to understand that you can buy and sell shares with a click of your mouse. Trading takes place in real time and within a couple of seconds of your trading instructions, the trade will be complete.

How easy is stock trading?
Stock trading is complicated as it takes great skill and a lot of determination to actually make your mark with online stock trading. Given you do have the skill and can maintain your determination, it will be possible to be successful. Learning with patience means you will make your first killing eventually. Learning from nay mistakes or from what you did right will mean your next profit is not far away. If you stick with online stock trading you will learn and gain the experience to make you as skilled as other stockbrokers in no more than a few months.

It is acknowledged that online stock trading is a risky business; this is true. You could compare online stock trading with gambling with playing cards. In many ways this is a good comparison, in that you can win and lose money and need to follow the rules. However, there is a big difference between poker and online stock trading.  With stock trading you choose the companies you wish to invest in, whereas in poker you are not able to choose your cards

Who are the new online stock traders?
New online stock traders have come from all walks of life, as all you need is a computer and an internet connection. In fact anyone aged over 18 can turn their hand to stock trading. During the tough economic times many moms and dads have turned to online stock trading to supplement their limited salaries. Stock trading is possible regardless of how much time you have. Even if you only have time before leaving for work or getting the kids to school, you can take a few moments to complete a few trades.

Teaching yourself how to trade stocks
Once you have your computer set up and an internet connection, you should consider buying a self-teaching stock trading program. Take some time to study the options available and don’t spend over the odds, as there are actually some good free courses available. Try to dedicate a minimum of 20 minutes a day. You will then need an online broker account, select the one that works for you. Each broker will charge you per transaction you could to expect to pay between $6-$8 for each one. You may want to talk to local stockbrokers to get some advice.

Focus on one market and get to know it well. One of the most active is the Dow Jones. You will need to learn fast and remember that market conditions can change during the day. Morning trading is one of the most profitable times to trade so get used to having your breakfast by your computer, as most of the best deals can happen in the first hour of the day.

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