First Steps toward Online Trading

To start stocks trading online, you do not need much. A computer, Internet access, and a desire to invest, spend, and earn money are totally enough. Thousands of people are already trading online, and the share of transactions concluded through online trading is steadily growing.

Where to Start

Finding a broker, signing an agreement with them, and installation of a trading platform are the first steps in trading. Initial investments are generally small and usually consist of opening an account, broker’s fee, and the amount to start, which must be deposited, according to the shares prices in which you are interested.

Keep in mind that there will be some fees for transactions, blocking and unblocking shares or funds, and transferring them.

After the connection, you will see the process and will be able to place orders by yourself to sell and purchase the shares. The amount of small transactions is by and large high. Small investors often play actively because they do not risk losing as much as big traders can.

Trading begins in the morning. From its start, everyone can place orders and conclude transactions. There is the finishing time after which all orders are canceled.

Important Tips for a Beginner

Alas, not everything is so easy in communicating with the stock market online. For example, a broken connection between the exchange and the client’s trading terminal can play a cruel joke: the trader loses electricity and the Internet, and all transactions freeze. However, some companies provide the possibility of submitting an application in an alternative way if this is not possible through the trading terminal.

In addition, there may be a risk of a dishonest broker who will make adjustments to the order. In such a situation, the client is protected, first of all, by a brokerage service agreement, which provides for the broker’s liability for such violations. Besides, the trading terminal makes it possible to monitor and report to the client for all transactions on their account – who made them, from what IP addresses, when, and so on.

Moreover, each investor is sent a report on the transactions carried out by them, and at the end of the month, the broker signs an act with the client, which indicates all the transactions made.

Also, do not forget that there are still few transactions on the stock exchange (in comparison with the possible potential), and the difference between the purchase and sale prices can be significant, which eats up a significant share of the investor’s profit. In addition, the sensitivity of the market to small injections, when even a few millions can stir up or collapse stock indices, also plays a role, and not always in favor of investors.

That is why it is important to correctly assess the amount with which it is worth joining the game. There is no unequivocal opinion on the size of the investment deposit. Ideally, a trader should stock up on such an amount that gives a chance to not only reach zero but also make decent money.