Online Stock Trade for Beginners

by Melanie J. Martin

Trading stock online lets you assume a strong role in managing your investments. You'll have the ability to make instant adjustments to your investments, buying and selling stocks based on real-time information feeds. Even if you don't opt to micromanage your portfolio by making changes on a daily basis, you may enjoy the freedom and ease that online trading provides.


Look for an online broker who charges a competitive rate (such as $5 to $10 per transaction) and provides original research on your stock options. A good broker also provides research tools and backup methods of trading, such as making transactions by phone or fax.


Online stockbrokers often provide software that helps you to screen potential stocks, chart your investments and manage your portfolio. Look for a broker who offers free software for these purposes.


To make the most of your ability to trade stocks instantly, you will need to access the most relevant stock updates. An online broker typically provides tools such as streaming charts that show changes in the stock's value as they occur as well as streaming stock news.

Trading Tools

Knowing how to use trading tools will help you to trade stocks online more successfully. For example, you should know how to set limits on the price you're willing to pay for a given stock. Setting your limit allows you to quickly trade at the current price while ensuring you won't go over the amount you're willing to pay or under the amount for which you're willing to sell. Starting with small-scale, low-pressure trades will help you to become comfortable with the tools at your disposal.


Online trading is quick and easy, the U.S. Securities and Exchange Commission asserts, but it notes that online investing takes time. The speed of buying and selling stocks online doesn't eliminate the need for substantial research, in other words. To compete in a fast-paced online environment, you'll need to thoroughly research trends in the stocks you're considering and become savvy about general market trends.

About the Author

Melanie J. Martin specializes in environmental issues and sustainable living. Her work has appeared in venues such as the Environmental News Network, "Ocean" magazine and "GREEN Retailer." Martin holds a Master of Arts in English.

Photo Credits

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