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How to Invest in Stocks Online

Vladimir's LST System

When you get started  investing   online  you need money at first. So you first want to be sure you have sufficient money to  invest . But having money and funding your account is the easy part, before you get started it is necessary to learn the basics of how to  invest   online  you want to learn how to examine  stocks , how does  online   stock  brokers work and how to fund your account. It is also good to read as many as many books as possible about  stock  trading  online .

Learning the basics of  stock  trading

What is a  stock ? For approximately one year you should practice on an excel spreadsheet rather than  investing  money directly. Collect number of shares,  stock  prices, profit or loss, commissions and taxes from the  stock  market. You should study and examine the fluctuations and changes with the imaginary  stock  spreadsheet. Don’t forget to calculate your net loss or profit from the share. Practice this way until you fully understand and become knowledgeable of  stock  trading. Then start  online  with an  online  discount broker. Discount brokers generally charge commissions of less than $10 per trade, some as low as $4 per trade, and some offer a limited number of free trades per year, provided you meet certain criteria. You should build a small portfolio around 40  stocks . You should keep your share for a long time and never sell it when market is down. It is always recommended that stay  invested   in   stocks  for at least five years or longer to see a return on your investment.

The role of discount brokers

Another area of  stock  trading you should understand is the role of  stock  brokers, and  online  brokers are called discount  stock  brokers. All  stock  brokers buy and sell  stocks  through an exchange. A  stock  broker is a person who has a license for trading through the exchange. On the other hand an exchange is like a warehouse in which people buy and sell  stocks . Internet  stock  buying is a combination of using a  stock  trading and an  online  exchange system. With  online   stock  trading you do not have the luxury of using a  stock  broker; you have to make the decision to decide yourself which  stocks  are to buy or sell; and you to use real money through your bank account. When you make the decision to use an  online   stock  broker, if your strategy is short term trading, then it is better to consult with a discount broker that charges a per-trade fee. If you planning to  invest  long term you should consider using a discount broker that offers a flat monthly fee.

Funding your account

When you are ready to fund your bank account to start  stock  trading, remember not to use your personal savings or checking account which may have your emergency funds. You always want to have a separate account for your  online  trading which is not commingled with your emergency savings or checking account. When you are ready to fund your account to get started the quickest way is to link your bank account to the  online   stock  broker account using the direct deposit feature. If you are not an experienced investor, only fund the account with as much money as you can afford to lose. When you are researching the  stocks  you want to buy you need to know the symbol, once you have the symbol you will be able to find the price for the  stock  that you want to buy. After you have found the symbol and know the price, you can decide the number of shares you want to buy, and in minutes you have purchase your  stock   online .

Vladimir's LST System

Source by Lori B. Phillips

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