This is part three of the free tutorial “How to Invest in Stocks.”
With the rise of the Internet, investing has become outrageously simple. In the next few minutes you can start investing online. This article will explain exactly how to invest online. If you are already interested in trying it out, then skip the following and click here to start. If you’re still unsure if it’s for you, read the rest of this page so you can evaluate yourself.
Should You Invest Online?
Just because you can invest online obviously doesn’t mean you should. Investing is incredibly risky, and most people aren’t successful. The emotions, the calculations and all of the planning can be completely destroyed in one day by an unexpected new law. There’s a reason to stock market is volatile.
Does this mean that a “novice” shouldn’t invest online? It completely depends on the novice. The only person who should be trying their hand are those that meet the following criteria:
- Rational. Rationality is a must when it comes to the stock market. Many investors invest on impulse, gut feeling and emotion — these are the investors that lose their shirts in a flaming heap of stress and destruction. Investing is about math and human nature. It takes reasoning to understand the situation; not emotion.
If you ever have a hard time keeping your emotions in control, you might consider finding someone else to manage your investments, or pick a high-interest Online Savings Account.
- Hard Workers. It takes research, planning and thought to do well in investing. The more you research, the less likely you’ll make an uninformed decision. Though “off-the-cuff” investing can work, it’s more like rolling dice than rational investing.
Does this sound like you? If so, then investing online could be a great decision. I find it to be exciting and profitable.
How to Pick an Online Investing Service
Investing online requires membership in an online investing service. There are dozens out there, and the fees are specifically crafted to attract certain types of investors.
To find out what kind of an investor you are, check out the investing strategies part of the series. Remember, it’s essential to have some sort of strategy listed before you head try to invest online.
Procrastination Doesn’t Work
Even if you don’t want to invest right now and want to do it later, make sure you get your account set up right now. I learned this lesson the hard way.
A while back, I watched Apple stocks drop almost 20% before going back to normal the next day. It was surreal — I followed Apple a lot, and knew that the stock was going right back up. Great news, right?
Unfortunately, I hadn’t set my account up yet. There were only few minutes to invest before the doors closed for the day. Opportunity missed; an instant 20% return lost.
So where to start? My favorite place is TradeKing. They do a great job, and are incredibly professional. You can get started for less than 5 bucks with them — another reason I use them.
Just click here to start, read over the benefits, scroll down to the bottom, click “Get Started Today” and will be on your way. If you don’t want to trade, just get an account for when you do.
Investing is exciting and, if you have nerves of steel, can be profitable. Just do your homework, think things through and don’t lose your head.