Online Commodity Futures

Archive for August 5th, 2009

Now from the comfort of our home we can access lots of things via internet which long ago we have to depend on a professional for.

In the past, if you wanted to buy stock you had to go to a broker. But now it is just as easy to buy stocks online.

And you will make money more for yourself since you will not pay broker’s salary thru big commission fees from your stocks.

If you want to buy online stocks, firstly, find a website that will give you access to all the tools and the market you need for your invesments.

There area a lot of brokerage company online. Since you will share your bank account and credit card information to establish an account, make sure you pick a well known online broker to do business with.

There are a lot of online brokerage to choose from. Make sure to shop around and choose one that offers cheap fees per trade with no additional fees, like for falling below a minimum balance or when you want to close the account if you wish to do so.

Before you make any decision to buy or sell stocks online, it is important for you to look at some analysis tools that the broker has to offer, since it will be important for your making decision. Using these tools, you can learn about share prices.

You may also want to start slow and very simple until you really understand the market and its fluctuations. You can see the fluctuations from stock market chart.

It is also advisable that you plan to buy quality stocks when you think they are priced at a value and hold on to them instead of constantly trading. This is a much safer approach for the long term.

Tweet This Post

Although it may seem obvious to most stock market swing traders there are a number of simple rules that you can follow which will ensure that you have more success when buying stocks:

In the USA stock market there are 3 major indexes which are each made up of a basket of stocks, they are the S and P 500 (also known as the S&P500), the DOW 30 and the Nadaq 100. These indexes generally only contain major blue chip  stocks, as long as you buy from these 3 groups you will at least know that you are getting a well known solid stock.

For example the DOW30 contains major industrials and large multinational stocks such as Home Depot (HD) and Johnson and Johnson (JNJ) whereas the Nasdaq 100 mainly contains techical companies such as Apple (AAPL) and Miscrosoft (MSFT).

Always buy a stock that is liquid, this means that it is a highly traded stock, this will enable you to easily buy and sell at the price you want without having a delay. You will also get a smaller spread, thats the difference between the BID and ASK price of the stock. For a stock to be considered highly liquid it should trade at least 500,000 shares per day, ideally even more.

It is best to aviod stocks that are bellow $10 as this usually means the company is in trouble, although with the bear market of 2008/9 there have been a lot of good stocks at bargin prices between $5 and $10. Avoid buying a stock below $5 at anytime.

Another consideration to make is options, does the stock has options?, this will be important if you want to trade options around your stock, such as a covered call, or you may want to buy a PUT option inorder to protect your stock.

Be very cautious about buying a stock just before it’s earnings release, stocks often drop significantly if you come out with a poor report. Earnings releases are 4 times a year with one of them being the annual report.

If you are going to trade options make sure that you learn how to trade by getting some good education. There are many swing trading strategies that work well with stocks in todays volatile markets.

Tweet This Post