The ability to swing trade stocks online is one that give virtually any person anywhere in the world the opportunity to buy and sell stocks in some of the world’s most prolific markets. Traditionally it’s been one of the top investment vehicles and over the last 10 years its averaged some of the best returns – despite 2 major market crashes and numerous fluctuations that caused the critics to proclaim that the sky is falling.
The truth is that the stock market has more risks than many other investments out there but its also got the most opportunity for profit. Trading online is relatively easy in terms of its execution but the real skill and the true challenge is in learning the in’s and out’s of trading. To get started, there are 3 very important things you need.
1. Computer Setup
Trading online requires a very robust computer set-up and I would suggest you buy a new PC with a dual screen set-up. This would allow you to analyze a lot of data side by side and it really works much easier. You will also need a very good internet connection and I would suggest you always have a backup somewhere – even if it’s just a dial up. If you have to make urgent buy or sell trades then you cannot afford the downtime. Timing is everything – especially if you do day trading.
Arguably the most important aspect and the heart of your trading business will be your capital. Its often referred to as the principal and it’s the amount of money you have in your trading account. This is the money you use to trade with and it’s the money that is supposed to make you more money. You need to protect is all all costs and make sure that you never borrow money to trade with. It’s called scared money and it never makes money.
If you run into online trading blindly then you absolutely will burn your fingers. Its not for the feint-hearted and requires a lot of experience, knowledge and expertise. Although you will pick most of it up over time, it’s really important that you start with a base education. Poor trading decisions usually result in traders losing money and poor decisions is often the result of a lack of skill and knowledge.