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Tips For Online Stock Trading: 3 Surefire Ways To Maximize Your Profits For Minimal Outlay
By David Jenyns
Online stock trading can be the most profitable or most 'cash sucking' form
of investing you can ever get involved in. It all depends on how experienced you
are, and how you approach it.
After all, there's the...
...absolutely positively essential 'US$15K US$20K starting capital'; the
'US$97 per month membership site fees'; the 'US$997 holy grail trading system';
the 'must attend' 'US$3,447 two-day trading seminar'; the 'US$150 per month live
stock price feed subscription'; the 'exclusive limited edition US$40 per month
'insider tips' newsletter'; the 'US$77 per month ultra-fantastic charting
service with the bonus 3,000 previously unknown technical indicators tossed
in'...etc...etc...etc...blah, blah, blah.
...Isn't there?
Sadly, far too many first-time traders get sucked in by all the hyped up tips
for online stock trading spun by money-grabbing internet marketers masquerading
as expert online stock traders. These greed merchants cunningly relieve the
unwitting newbies of every cent they own... and then justify it by saying that
it's a 'small price to pay for the knowledge that'll make them rich!'
If you're a first-time online stock trader and you want to avoid falling into
the same trap as so many before you, then this article on 'tips for online stock
trading' is written for you. Please read on...
Here are three tips for online stock trading that'll save you over US$1,500 a
year!
1) Find an online stock broker who doesn't require a minimum deposit. If
you're a beginner at online stock trading, or you're on a tight budget, there's
no need to set up a brokerage account with 'thousands of dollars' in starting
capital.
Personally, I opened my first online stock trading account with just a
hundred dollars! I decided that 'if I got it wrong a few times...too bad. It was
my learning curve and the downside risk was no more than the cost of a good
night out!'
I choose Sharebuilder (http://www.sharebuilder.com) for my
online stock trading debut. Unlike most other trading firms, these folk allow
you to nominate a DOLLAR AMOUNT as opposed to a SHARE AMOUNT when placing your
order. For example, I opted to invest US$100 in high technology stock, Imation
Corporation (Stock Symbol = IMC). I paid $37 a share and ended up with 2.594
shares (i.e. $37 x 2.594 = $96 + $4 brokerage = $100). The stock climbed to over
US$51 a share before easing back to the low $40's. I took my profits at $49 a
share and banked a 27% gain!
2) DON'T PAY for online stock trading information when you can get it
for FREE. Why pay hundreds of dollars a year for so-called hot stock
information when you can get it for free from either MSN.com or Big Charts.com?
These two sites have so much online stock trading info and advice crammed into
them you could spend a lifetime just reading it all!
For MSN.com, go to: http://moneycentral.msn.com/investor/home.asp
and you'll discover more tips for online stock trading than you'll know what to
do with! There are more than one hundred links per page covering every
conceivable aspect of online stock trading. Market reports, IPO's, currency
exchange rates, portfolio tracking facilities, EFT's, brokers, research tools,
stock ratings, quotes, charts, company earnings, open streaming stock ticker,
SEC filings, earnings estimates, analysts ratings, expert stock picks... the
list is endless.
For BigCharts.com, go to: http://bigcharts.marketwatch.com and
you'll find a whole new bunch of tips for online stock trading. While the site
itself is not as large as MSN.com, the depth of free technical analysis and
charting tools is, in my opinion, superior. The many articles and stock reports
hosted on this site are also of a higher calibre. However BOTH these sites are
invaluable sources of trading information and considering they provide free
access to all the data you'll ever need, bookmark them NOW!!!
3) Profit from 'back door' companies. Instead of buying highly priced
shares in mainstream companies whenever such companies announce a pending 'major
product roll-out', why not do what the real professional traders do...'look for
other, much lower priced stocks (such as raw component manufacturers and / or
suppliers to the main company) which stand to benefit just as greatly from the
impending product launch. Make a shortlist of these peripheral companies, and
then buy shares in the one/s that offer the greatest potential leverage to the
upside.
An example of this could be finding a small but publicly listed manufacturer
that supplies components to a gaming console giant like Nintendo. While Nintendo
doesn't offer much leverage at almost US$180 per share, the small peripheral
supplier might be trading for just a few pennies on the OTC or NASDAQ. If the
launch of Nintendo's 'Wii' later this year goes as well as some analysts expect
it to, the associated OTC and NASDAQ stocks could literally 'go through the
roof!'
Conclusion:
Despite what you may have been led to believe, it really is possible to begin
and maintain an online stock trading career without having to use up all your
capital resources on unnecessary and / or highly over-priced trading resources.
Even though this article only featured 'three' powerful tips for online stock
trading, it won't take too much effort on your part to unearth an entire library
of them. Good luck and good trading.
About the Author -=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=- Discover How Nicholas Darvas, A 25 Year Old Ballroom Dancer, Turned $25,000 into $2.25 million... A Remarkable Trader, A Remarkable Amount Of Money And Remarkably Easy. Click Here To Discover Nicholas Darvas' Secrets http://www.nicolasdarvas.org/ -=-=-==-=-=-=-==-=-=-=-=-=-=-=-=-=-=-=-
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Some other articles by David Jenyns | |
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