Stocks Options Trading

Let's assume that you want to make some serious money and you have chosen to take things into your own hands rather than depend upon a "professional trader" to make your trading decisions. This is usually only recomended if you can afford to lose the money that you are trading with, and you appreciate the fact that there is much more upside potential with this added risk. In any case, you have decided on 3 stocks that you like and are now at your computer ready to purchase them.

Before you decide to get into the market, you will want to do some research. Determining a good time to get into the stock market is very hard, but it can also be one of the most important decisions you make. When traders get carried away and think too optimistically, the market gets over valued and it is ripe for a downturn. After that downturn is when you want to enter the market. Once believe that time is now, the next step is to sign up for a online brokerage account. Then, you will want to choose at least 3 stocks from different sectors of the stock market. Perhaps you like Genentech- DNA or Phizer - PFE as a drug stock, google - GOOG or intel - INTC as a tech stock, and Exon Mobile - XOM or Valero - VLO as an energy stock.

Then, it's as simple as entering the symbols for the stocks that you have chosen to invest in and setting a limit price. Or, if you prefer to have your trade placed instantly at the best available price, just make it a market order and it's even simplier for you. Now, unless you have the time and interest, let your stocks sit for a year or more before you even consider selling them. This way you can avoid short term capital gains tax which can eat into your profits.

Of course, if you prefer a less risky approach consider purchasing a no load mutual fund. You will want to make sure it is a no load mutual fund otherwise you could be charged up to 5% or more by your broker on each trade you make. With all the competetion out there, don't get sucked into a mutual fund with "hidden fees" like that.

I hope this article has given you an introduction to online investing and will help you.

Troy Smith is a freelance writer who also makes a living buying and selling stocks on a daily basis. Visit his Website: StocksOptionsTrading.com

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