Can Online Share Trading Really Help You Make Money?

By Author: SamJacob Thomas
Total Articles: 40
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This would without doubt be an oft repeated question many would have on the top of their minds and something that can have a contradictory answers depending on how exactly one would like to go about investing in stocks and the investor’s primary objective.

While investment styles and risk appetites vary from one individual to another, trading in stocks can be as easy as taking a walk in the park for some while for others it might involve complex analysis, real time data crunching, timing the markets, etc., that can introduce an individual to a whole new world of investing that many feel is totally out of their realm and capabilities.

Stock Trading Not Really the Realm of Stock Market Specialists

While all of the above can literally be overwhelming for the layman investor, thankfully all is not lost for a regular person wanting to invest in stocks provided he/she is disciplined, uses common sense and has the basic understanding of trading in stock markets.

Know Your Investment Appetite?

Before you begin dabbling in stocks, you need to first understand your investment/risk appetite.

For ...
... absolute beginners, stock market investment over a shorter time frame, especially day trading, can be a high-risky affair if he/she does not understand the intricacies of how markets behave.

It is also advisable to use surplus capital to invest in stocks and not borrow funds or dip into savings allocated for emergencies.

Online Share Trading – Convenience at your Fingertips

The era of online share market trading has definitely leveled the playing field for small and big investors. Today, anyone with a computer and an internet connection with access to a demat account can easily start trading in stocks. Opening an account is easy with several large and small brokerage houses offering affordable demat services.

Making Money from Stocks – Is It Really Possible?

Treading with caution is the name of the game when it comes to dealing with stocks, especially if you have a very short investment horizon. If you stick to the basics, show discipline and don’t let emotions guide your actions, you probably can create a fairly decent stream of income. Here are some basic tips you can use that many successful investors still vouch for.

• If you are a beginner, start with just a couple of stocks.
• Invest in companies that you feel are a good bet and have performed consistently well over a period of time.
• Keep yourself updated on any news about the sector and the company you have purchased the stocks of.
• Always invest for long term.
• Do not buy whenever there is a market rally.
• Think before you sell. If you know the stock is worth investing over long term, hold on to it when everyone else is selling.
• Buy when everyone else is selling – the reverse strategy of what has been outlined above.

Safer Avenues of Investing in Stocks

If you still believe investing in stocks is not your cup of tea, there are other options that would help you invest in markets such as mutual funds where experts invest on your behalf in stock markets.

Again, mutual funds is a whole new topic with its own pros and cons; but to begin with, most online share trading accounts give individuals the dual option of investing in mutual funds. Investors can pick and choose funds they would like to invest in, track mutual funds nav, redeem the funds and execute a host of other options without even stepping out of their homes.