Thanks to the internet, you can choose the stocks to invest in, buy and sell them at the mere click of a button. Even as you do so, the fear of losing your hard earned money to fraudsters is always imminent. Fortunately, be exercising caution and a high degree of care, you will find online investing to be safe, easy and convenient. The following advice will help you keep on the safe side of online investing:
Begin with a small amount of money
As a newbie, the kind of energy and zeal burning inside is quite understandable. You have spent the last few weeks doing lots of research on the subject. Probably, part of the process has involved talking to stock brokers, financial experts, friends and reading books on the subject. This is fine especially if you are convinced that investing in stocks will generate good returns. Nonetheless, start by committing a small sum of money into your online savings account. This makes it easy for you to track its progress. Once you get the feel of it and are confident of progressing, you can consider adding more funds.
Do not be too afraid
Every investor out there fears losing money. If you let this fear override you, chances are that you will never have courage to spend your money. That is why you should try with a small amount and brave it all. Do not pull out at the very first sign of a plunge in stock prices. That is how the market behaves all the time. You should learn how to anticipate these trends. Most importantly, you have the internet to help you analyze future market behavior.
Choose your broker wisely
Brokerage costs for online stocks transactions are lower than what a brick and mortar broker will charge. However, you should always remember that there is a human element behind it. Study carefully the fees charged by prospective brokers. You should also find out the tax implications of buying and selling stocks online. This has a bearing on the brokerage fees. Where you find a broker is charging lower fees than his counterparts, check again for hidden costs. You had better pay more but get good value for money.
The internet is not without a fault. At times, the link goes down when you least expect it to. This could happen just when there is a major move in the market. Another possibility is where you happen to be away from your computer or laptop. A software hitch could also occur or even your broker’s server crashes. These technicalities do happen to everyone. In order to remain on the safe side, inquire about and be conversant with other trading alternatives that your broker has put in place.
Read the Money & Markets Stock Newsletter for regular tips and updates.