| With the massive rise of Internet usage and the | | | | money but you will also need to service the credit |
| higher speed network access, a whole new range of | | | | card debt that you incurred in making the |
| services are now available on-line. Whether you are | | | | investment, not a good place to be. |
| looking to rent a car, book a hotel or buy flights all of | | | | One of the big benefits of on-line trading is that you |
| these are now easily available over the Internet. In | | | | have access to an on-line trading account. This on-line |
| fact for low cost airlines, internet ticket buying has | | | | account gives you the ability buy and sell shares |
| become the major way to buy tickets. Now that a | | | | on-line, removes the need for holding physical share |
| vast number of users are buying and selling services | | | | certificates and you can view the value of your |
| on-line, the question is, if you trade in stocks and | | | | shares holdings on-line so that atany time you can |
| shares then should you be using on-line trading for | | | | see how your investments are doing. |
| your investments and if so how do you do so | | | | You need to do your homework before you set up |
| safely? | | | | an on-line trading account. Check out the company |
| In years gone by if you wanted to trade shares, you | | | | you are going to trade on-line with. Where are they |
| spoke to a broker, you told him what shares you | | | | geographically based? If you live in America or the UK |
| wanted to buy or sell and at what price range. The | | | | do you want to use an on-line trading company |
| broker would then go into the market, carry out the | | | | based outside of your country? What are the |
| trade and send you a contract note confirming the | | | | charges you will have to pay for either buying or |
| deal you have completed. Some time later, you | | | | selling shares? Another cost that is often overlooked |
| would then receive a share certificate for the shares | | | | is the quarterly charge for keeping your account |
| you have bought and then it is your responsibility to | | | | open. If you are dealing in penny shares or low value |
| keep your physical share certificate safe and secure. | | | | investments then these costs can take quite a |
| With the rise of online trading it is now incredibly | | | | tranche of your investment, so do your homework |
| easy to buy and sell shares online, however just | | | | before you open the account. Another area to be |
| because it is easy does not mean that you should | | | | aware of is what happens if your selected on-line |
| give up the good practices that you used for buying | | | | broker decides to move out of your investment area |
| selling offline. | | | | or sells their business to a new company? You may |
| You still need to carry out good research on the | | | | have selected an online broker who has low costs to |
| companies whose shares you are looking to buy, you | | | | buy and sell shares and noongoing account quarterly |
| should put aside a specific budget for your purchase | | | | charges. The new owner may have high charges for |
| and you should set your limits on share movements. | | | | low value investments and a high ongoing quarterly |
| By limits what I mean is that you should know when | | | | charge maintaining the account. Before your account |
| you are going to sell your shares. You can set a loss | | | | can be transferred to another company they must |
| of say -30%, this means that if your shares drop by | | | | inform you and give you the opportunity to take |
| this amount then you will sell the shares as soon as | | | | your investments to another on-line broker. If you |
| they drop 30%. You should also set a gain limit, you | | | | are notified of a change of ownership of your on-line |
| may decide that of your shares increase by 30% | | | | trading company then do your due diligence on the |
| then you may sell 50% of them and take the gain. | | | | new organisation. If you are not happy then move |
| You need to set your ownlimits, however you need | | | | your account to a new on-line trading company of |
| to set these limits and adhere to them. It is a | | | | your choosing. |
| complete waste of your investment if you watch | | | | To trade on-line successfully, follow the guidelines |
| your share value disappear down to zero. | | | | above and you will not go wrong. On-line trading can |
| With on-line trading it is very easy to buy and that is | | | | be a very enjoyable pastime for amateur investors |
| why it is imperative that you set a budget. Shares | | | | (or even professional investors) you just need to |
| are not a straightforward investment, there are risks | | | | ensure you have a plan for your investments, |
| associated with trading shares so you need to set | | | | monitor your plan, amend your plan as market |
| your budget according to the level of risk you are | | | | conditions change and hopefully make successful |
| willing to take. The worst thingthat can happen to | | | | investments that will generate great returns for you |
| you is to max out a credit card on buying a share | | | | and your family over the long term. |
| that then plummets. Not only have you lost your | | | | |