How To Trade Stock Online
If you want to learn how to trade stock online, you will need to educate yourself on the stock market before you begin to trade. You must have a brokerage account to trade stock online, so you will have to decide which broker to use. Once you have made at least the minimum deposit required by the broker, you can begin to trade. It is a good idea to trade stock online you know something about instead of trying to catch a high-flyer you read about or saw on a financial news program.
- Research a few stocks you are interested in buying. Look at the chart of a stock online to see if it is currently in an uptrend or a downtrend. If the stock has been steadily moving lower, you may want to wait until it starts to rise again since that may signal the end of the downtrend. Once you decide the stock is at a price worth buying, place an order using the broker’s trading platform.
- Confirm your entry price using the broker trading platform. Find out at what price your ordered was filled and if you want to set a profit target for your exit. Place a sell order at that price. For example, if you buy a stock at $25 per share, you may want to take profit if the stock rises to $30.
- You may want to use a stop-loss when you trade stock online. This can help keep you from losing a large amount if the trade does not go your way. For example, if you bought a stock for $25 per share, you could use a stop loss order at $23. Your total loss would be $2 per share if the price of the stock falls and triggers your stop loss order, which would sell your shares at $23.
- Monitor the price of the stock on a regular basis. Even if you bought a stock to hold for the long-term, you should still keep an eye on the price. Exit the trade if you decide you no longer want to hold the shares, then reinvest the funds into another stock online.