Monday, September 18, 2006

About Online Trading

by Brian Lee

The internet! Oh what a great invention. The invention of the internet has brought about many changes in the way that we conduct our lives and even our personal business. We can pay our bills, shop, bank, and even meet our soul mate by dating online!

Due to the progress that we have managed to achieve in this world, we can even buy and sell stocks online. Traders love having the ability to look at their accounts whenever they want to (I know I do it all the time), and brokers like having the ability to take orders over the Internet, as opposed to the telephone.

I remember before the option of being able to trade online, whenever I wanted to buy or sell stocks I would have to call up my personal broker to place a trade. Now all I have to do is log into my online trading account, and I able to trade stocks, options, currencies and bonds.

Most brokers and brokerage houses now offer online trading as an option to their clients. Another great thing about online trading is that the fees and commissions are often a lot lower. While online trading has it's pros, as usual there are cons as well.

If you are new to investing, sometimes having the ability to actually speak to your broker can be very beneficial. Or if you aren't as stock market savvy, online trading may be a dangerous thing for you. If this is the case, make sure that you educate yourself as much as you can about option trading or whichever investment field you're interested in before you start trading online.

You should take into consideration that if you don't easily have access to a computer with an internet connection, you won't always have the ability to go online to make a trade. You should have a back up plan to be able to call and speak with your broker if this is the case. This is should be the case whether you are an advanced or a beginner trader.

It is always a very good idea to go with an online brokerage house that has been around for a while. Since the option of being able to trade online hasn't been around that long, you won't be able to find a online brokerage house that has been in business for fifty years. The next best thing you can find is a company that has been in business that long and now offers online trading as an option.

Being able to trade online is a beautiful thing, but it isn't for everyone. Evaluate your habits carefully before you decide to do your trading online, and always make sure that you educate yourself on your chosen investment field before jumping in.

By Brian Lee

Brian makes his living doing full time trading and coaching Find out more about online option trading

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