Trading Stocks Online - Advantages

All stock market trading, including trading stocks online, includes an element of risk and it isn't for everybody. However, if you're going to get serious about trading as an independent investor, then you need to learn how to buy and sell stocks online.

 

For those individuals that aren't familiar with the term 'independent investor', let me clear the air on that question right away. An independent investor is a person that makes their own investment decisions. They have gained sufficient knowledge and experience that they can make their own independent decisions as to what to buy, when to buy, what price to pay, and when to sell.

 

With that information as a background, what are the advantages of trading stocks online?

24/7 Unrestricted Access
Our lives seem to get busier and busier. Businesses and relationship cause us to travel to many different areas of the country, if not the world. Now, investors can benefit from:

• Global access to their personal trading account via an internet-connected desktop, laptop, or mobile device anytime of the day or night seven days-a-week. Trades entered after trading hours will be executed at the beginning of the next trading day.
• Quick access to charts and data on any publicly traded stock or fund.
• Unrestricted buying and selling of any publicly traded stock or fund without experiencing the pushback that a broker might have given you.

Online Investment Tools
Online stock brokerage accounts often come with all the features you need to effectively manage your portfolio and to quickly search for high quality stocks. This includes:

• Stock charts
• Technical indicators
• Stock screeners/scanners

Freedom

• Place trades anytime you like.
• Place trades from anywhere you like.
• Buy and sell whatever you want.
• Nobody to answer to but yourself.
• No experience required.

Time Management
One of the primary benefits of online stock trading is that you can effectively manage your portfolio very efficiently in terms of your time utilization. We're all busy. Why spend hours searching for stocks, when you can do so online in minutes?

Discount Trading
If you are ready to make independent trading decisions without the assistance of a broker, then you may be able to take advantage of discount trading.

• Commission fees from discount online brokers ranging from $3.95/trade to $19.95/trade. This is less expensive than trades you migh execute if you are working with a stock broker that is providing you with advice and making trades for you at your request.
• Beware: There are differences in the requirements for opening a trading account, for the minimum balance in your account, and for maintenance fees. Do some comparison shopping.?

Summary There are many advantages to trading stocks online. . However, independent long-term-investors and short-term-traders must also be honest about their readiness for trading online. There are risks and mistakes in entering a trade can cost the trader a considerable amount of money. Education is critical. If you're unsure of yourself as a new online trader, you might want to open a 'paper trading account' where you can trade online with a practice account where your 'real money' is not at risk.

When you're prepared to trade stocks online, you'll find it to be a very freeing-experience where you can move quickly to take advantage of moves in the market.

I wish you the very best as you proceed with your trading of stocks.

If you're in need of additional training before starting your journey of trading stocks online, I encourage you to spend some time gaining further education at Winning Stock Trading Fundamentals.