Buying Stocks Online

There have been numerous changes in the stock market over the years and one of those changes is that day trading is available via internet to anyone interested in trading. In years past, day trading was mainly for financial corporations and professionals. Due to the available resources in today’s online world, the prospect of becoming a stock trader is not out of reach. As long as you have the proper tools to trade, the financial markets are a huge playing field to pursue your financial goals.

In order to get started trading, you will need to open and fund a stock brokerage account. While some stock brokerage firms require a minimum deposit of $500 to $2,000 to open an account, you will be required to maintain a minimum balance of $25,000 in order to day trade. However, most seasoned stock traders recommend starting your trading account with $30,000. There are many different brokerage companies to choose from and your goal is to find the brokerage firm that fits your trading needs, as each one has something different to offer.

Find a broker who offers a reliable, fast trading platform, low commission rates, readily available short inventory and reliable customer service. Some brokerage firms charge by the round trip while others charge by the amount of shares you trade. This makes a big difference especially when you first start trading stocks, as your position sizes are most likely much smaller during the beginning stages. If there is a brokerage firm you are interested in, yet their commissions are too high, consider negotiating with them for lower commission rates; often times they will work with you. There are many choices in today’s market so it is good to do thorough research until you find one that fits your day trading needs. 

After you have selected a trading firm, set your stock charts up and begin reviewing hundreds of charts for highly probable day trading ideas. You will also need to determine which technical indicators are best for your style of day trading and add them to your stock charts. It is highly advisable to spend time trading on a demo account before trading live. This will give you time to learn how to trade stocks with less expense instead of learning while using your real money. Most proficient day traders suggest trading virtually until your winnings have reached eighty percent or higher. You will find that you will make mistakes, but it depends on how you learn from those mistakes as to how your trading skills will continue to improve. After you become familiar with the stock chart pattern you are looking for, the trade executions will be much faster and therefore the potential for increasing profit will be greater.

Many new day traders make the mistake of thinking they can make large amounts of money in a very short period of time. While that is a possibility in day trading, for those who are proficient traders, it is much more reasonable to approach your day trading ventures using the guidelines you have set in motion and with consistency, you can reach your financial goals. It is those people who have the false expectation to make fast money without the dedication to learning the system that usually experience the greatest disappointments.

There are endless ways to profit in the financial markets due to the vast amount of education and productive tools available in today’s market. Day trading is a great way to achieve income as either a part time or full time career, supplemental income or retirement. As in any type of stock trading, a person should realize that there is always risk involved. This is one of the many reasons the point is stressed to spend quality time studying, reviewing, and practicing day trading in order to become a proficient day trader.  Once you learn how to day trade and make consistent wins, you will have developed a skill you can use for the rest of your life.

Brokerage Firms to consider: (note: the following five firms tend to have higher commission rates than others)
TD Ameritrade, Scottrade, Fidelity, Etrade, Schwab

The following three firms are excellent for day trading specifically:
Tradestation: features a full charting package so you have no need of additional charting software and they also offer low commission rates.
Lightspeed: Since their charting is limited, it is recommended to use Esignal for charting software. Lightspeed has the speed of executions you are looking for in day trading, as well as a good short inventory.
Interactive Brokers: integrating NinjaTrader for charting is best with Interactive Brokers, as it is less expensive than Esignal. They do offer a good short inventory and reliable customer service.

TradeStocksAmerica Staff

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