Here are some things to consider in preparing to trade:
1. What technique/vehicle will you use?
A. Options
B. Futures
C. Forex
D. Arbitrage
E. Mutual Funds
F. Stocks
G. Penny Stocks
H. Bonds
2. What is your required level of security?
A. Almost guaranteed success
B. Minimal amount of loss when there is one
C. High risk with high possible returns
D. Moderate risk with moderate rewards
3. Determine your current goals.
A. Steady immediate income stream
B. Find the big up and coming stocks
C. Stable Long term/future growth
D. Instant big profits
E. Slow but consistent increase
4. Determine how much time you will commit.
A. A couple of hours daily.
B. A couple of hours weekly
C. Have someone else manage your trades
D. A combination of your time and someone else managing a portion of your portfolio.
5. How much money will you apply to your online trading?
A. 10% of your gross income
B. 10% of your net income
C. 10% of your investment funds
D. Other
6. How much money will you place in any trade?
A. 2% of your total account
B. 10% of your total account
C. $1,000
D. $10,000
E. $25,000
F. Other
Online Stock Trading: Freedom of Trade Ready to invest all by yourself? You ve got all the tools are your fingertips when you re ready to trade online, or do you? We ll show you the pros and cons of online stock trading.
I remember the first time I started to trade online. It was just before the tech bubble of the late 1990s and the internet was still something new for most people. Purchasing the now forgotten company was easy, and I made a few dollars on that trade. It was so excitingly simple.
Flash forward a couple of years and I have made and lost my share of money. While still ahead of the game, I learned a fe ..
7. How will you manage your profits?
A. Allow all of it to compound?
B. Compound 10% of the profit and use the rest for living?
C. Compound 50% of the profit and use the rest for living?
D. Use all of it for living?
E. Other?
Defining your plan before you begin online trading will make a huge difference in your results. Once you have defined your plan, stick with it. Discipline yourself to do exactly as you said. Set a certain date when you may revise the plan and then stick with the revised version. It's best not to randomly vary your activity off the set plan.
If you want the least risk, learn about options and arbitrage trading. There is fabulous software available these days to make arbitrage trading a cinch. It's a great way to get your feet wet so to speak with the safest form of online trading.
ABOUT THE AUTHOR
Online Stock Trading: Higher Commission Fee Actually Increases Profit For Many...
Online stock trading is probably not for you if you are not a frequent trader. By a frequent trader, we mean if you have more than one stock transaction per month.
If you trade less than once per month, you will probably be better off going with a full-service brokerage firm other than the online stock trading offered by the discount brokerage firms.
If you like the ease of online stock trading, your full service brokerage firm can still offer you this service.
The main point is that full service brokerage firms usually have better execution than the discount brokerage firms. Sinc ..
Juanita Bellavance coaches entrepreneurs on "How To Condition Yourself For Success." Get the facts on options and arbitrage trading before deciding on your trading technique. Register for a current live teleseminar here: http://www.surefireonlinetradingsuccess.com Contact Juanita at Juanita@surefireonlinetradingsuccess.com
