Gone are the days when we pay high brokerage fees to trade stocks. With the advent of the Internet, online stock trading is now possible. This opens the doors for lower trade costs, as human brokers are no longer required to place trades for us. Websites with web-based interfaces makes it easy for us to execute trades ourselves. All you need is the ability to use the computer, connect to the Internet and of course, a stock investing account.
With stock information downloaded right onto your computer screen, online trading allows you to analyze real-time information on stock charts. You can apply technical analysis strategies in order to identify entry and exit points for each stock investing. Most importantly, you are able to observe the ticker right from the comfort of your own home. Orders are placed through online through the click of a button. Of course, you first need to fund your online stock trading account first before you can trade.
Perhaps one of the greatest benefits online trading has brought us is the lower costs per trade. You are now able to make more trades each day by spending only a fraction of what you spend if you were trading offline. Thus, stock investing through day trading is possible as you move in and out of positions and make money from the increase or decrease in prices.
With online trading, you are also able to respond quickly to news and announcements which are critical on pushing prices up or down. The hassle of making phone calls to place your orders is no longer existent. You watch the screen and make your move when the time is right. You are able to see the number of buyers and sellers whom can take the opposite side of your trade. You are in direct control.
The power of the Internet also means that you are not confined to just local markets. In fact, stock markets around the world are now accessible to you. Trading in several markets gives you with more opportunities to make money, and also to diversify your portfolio.
Historically, market liquidity is increased with the presence of international online traders. The high trading volume makes it easy for you to buy and sell your stock as there are more buyers and sellers available. Therefore, you are able to respond quickly, and close your positions if things don’t go your way.
With all these convenience and benefits, many full time traders work full time in their pajamas right at home. They enter numerous trades each day, and strategist by applying both fundamental and technical analysis. With the market at their fingertips, the prospect of full time trading has truly become a reality for many online stock traders.