Trading stocks can be an excellent way to bring in passive income. With the numerous available online trading platforms and apps today, online stock trading has never been easier. This guide gives an overview of how you can buy stocks from the comfort of your home.
Choose a Trading Platform
To get started trading stocks online, you’ll need to create an investment account with an online trading platform, or you can download a mobile trading app. Many of the most well-known trading platforms also have mobile apps, so it’s easy to watch your account from your desktop and your device.
When you open an account through an online trading platform, you’re essentially buying a brokerage account. You can go ahead and choose to use an online broker through the platform, or you can learn how to buy stocks directly. For instance, online trading platforms like TD Ameritrade are essentially brokerage companies that allow anybody with the funds to access the stock market.
Take Advantage of Stock Tools
Image via Pixabay by Tumisu
Once you set up an online investment account through the platform you choose, start navigating the available stock trading tools and resources. Many platforms provide learning resources that help you learn more about how the market operates, and you should have stock tools for analyzing and researching the stocks you want to buy. Tools like stock screeners and performance indicators help you figure out which stocks are worthwhile for you to buy.
You can also set up daily email notifications or enable app notifications on your device so you stay updated on what’s happening with your investments. Look for trading simulators, too, to deepen your knowledge of stock trading. This is a great way to practice and get hands-on experience if you’re just starting out, and there’s no risk if your simulation stocks take a fall.
Learn How to Research and Analyze Stocks
As you toggle through the tools and resources your platform provides, use the opportunity to learn how to research and analyze stocks you want to buy. This can take some time, but it’s worth it to make sound investment choices when you do buy stock. Start by researching the company. Look for public information like earnings reports, SEC reports, financial filings, and even outside analyst reports on the company’s growth and performance.
Invest for the Long Term
Once you get into active stock trading, start thinking long term. Consider investing in stocks that will help you build up savings over time so that you have a nest egg. While you can most certainly purchase stocks and hold them for long periods of time, there are other long-term investment options that can help you set aside savings and diversify your investment portfolio at the same time. Things like mutual funds, bonds, and exchange-traded funds are great long-term investment options to add to your active trading investments.
These four approaches can help you get started with online stock trading. As you get used to the process and build up your experience and knowledge of stock trading, you have the potential to make some serious income.