Investing in the stock market can be overwhelming especially if it is your first time. However, with a bit of guidance, rest assured that you will be able to trade in the market with ease. Not only is this a great way to earn profit but is also helpful if you are saving for retirement. Interested in online trading? If yes, then read further to know more below!
Assess your investment goals
If you are just starting out in online trading, the first thing you need to do is assess your investment goals. Most traders can be classified as either short or long-term investors. For a proper evaluation, make sure to write these goals down before trading. Some examples include:
- For instance, if you are planning to save money for retirement then you probably want to organize a long term investment.
- On the contrary, if you are planning to get your children to college, you need to plan on short term investments.
Conduct research on current trends.
Once you have written down your investment goals, you now need to research the current trends. By doing this, you will be able to know which one to invest in to earn money. Fortunately, there are many reputable sources that report on market trends such as:
- Investor’s Business Daily
- Traders World
- The Economist
- Bloomberg BusinessWeek
- You could
- Abnormal Returns
- Deal Book
- Calculated Risk
- Zero Hedge
Select a trading website.
For people who are just starting out, using a reputable trading website will give you a higher chance of successful trades. However, when looking for one, make sure to read reviews online. This will give you a better idea of the platform that is suitable for you. Moreover, they must also offer amenities such as a mobile phone app, investor education and research tools, low transaction fees, easy to read data and 24/7 customer service. Some of the best sites we recommend include:
- TD Ameritrade
- Motif Investing
Buy reliable stocks.
Although you have a lot of stocks to choose from, it can be quite hard to pick one that will guarantee profit the most. For this reason, you must always keep these things in mind before investing in a particular stock:
- Try to look into a company’s public financial reports to evaluate how profitable they are. Remember, a more profitable company usually means a more profitable stock. To find them, visit their website to get their contact information, call the company staff and request a hard copy.
- Before investing, try to research the company’s worst quarter on record and decide if the risk of repeating that quarter is worth the potential for profit.