Business and Finance

1. Open an online trading account. Choose an online broker that you think has good services based on the research that you had conducted online. Select one and sign up. There are many online brokers that you can research on the internet and one good broker is  shown below:

2. Fund your online trading account. You really need a capital in order to buy and sell stocks online. After setting-up your online account, you'll need money to fund it. If you are new with online stock trading, a good starting point is about $400-$2000. Any amount lower than the ones just mentioned will make it a bit difficult to buy large quantity of stocks. Remember that the more shares you have of one stock, the more money you can also make. The downside of this is when the stocks that you had bought drops then you'll also lose money. Trading stocks online is also a gamble on the investment that you currently have on the market.

3. Study and observe the market for a few weeks. Do not be in a hurry to buy and sell stocks online after setting-up your online trading account. Try to get a better view on how the market moves up and down on a daily basis. Since you already have your online trading account set-up and funded, try to check the market if the NASDAQ, DOW, and S&P are all going up because if this happens then it could be your advantage to wait for awhile and observe. Remember that they keep on changing. If you already have money in the market, rally days may be advantageous for you. Generally, rally days are also the days that you want to sell your stocks, not a good time to buy them. You may also want to see some online sites that give information about online trading stocks like Fast Money if you want additional information of how the stock market works. When the market drops, it's called a pull-back. These are the days that you want to buy stocks because they are usually cheap and affordable depending on each of them because each stock varies when it comes to the price range. Usually, rally days are the days when people are selling.

4. Buy stocks that you have chosen in bulk. Remember that you still need to pay for a "trade fee" so if you predict that the stocks that you'll be buying will give you a good amount of profit then buy them in bulk. For example, try to buy 600 shares of your chosen stock. Let us say that it's trading at $3 a share today so the total cost for the trade is as follows: 600 shares @ $3 share = $1,800 + $10.00/trade = $1,810 total. Try to place a "Limit Order" when you start placing your order. A "Limit Order" allows you to choose the price whenever you want to buy or sell your stocks online. This is an order placed with a brokerage to buy or sell a set number of shares at a specified price and this allows you to limit the length of time an order can be ongoing before being canceled. A "market order" is when the market dictates the price whenever you buy or sell your stocks.

5. Since you already had placed your order, try to wait at least for a day or two. If you think that it is time to sell after a day or few days then place a "limit sell order" for your 600 shares of your chosen stock at $3.40. If you had succeeded in selling the stock then 600 shares @ $3.40 share = $ 2,040 - $ 10.00/trade = $ 2,030. So you had bought 600 shares of your chosen stock at $1,800, then sold those 600 shares at $ 2,040 so therefore you made $ 220 as a total profit.