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Thursday, June 25, 2009

Top Choices Of Online Stock Trades

By Anne Durrell

Online stock trades are available to anyone with a reputable online broker. However, you need to know a few things before you get started because the risks can be high and you can lose if you are not careful.

The first rule for online stock trades is: never invest money that you cannot afford to lose. That means do not use funds that you need this month or next to pay bills.

Investing is really much safer if you plan it for the long term. Even when there is recession, you will not lose unless you're selling.

Many companies as well as the market have their ups and downs, but they usually will recover over time. If you can afford to leave those investments alone, then you will be fine.

Many investors become in trouble when they see the market drop and they panic and start selling. When many investors start selling, then more and more investors are drawn into the panic and start selling too.

If you plan your investments for the long run, you won't be tempted to sell like everyone does. As a matter of fact, that is exactly when you should be thinking about buying when everyone is panic.

Most online stock trades are almost entirely automated and that make the fees become lower than the traditional ones, which means you can actually make more profits on each of your investment.

This is a great way to get started. It is also a good idea to start slowly and invest over time because if the market does something crazy, like falling through the floor, you will not have just put every penny into it.

As a matter of fact, if you were waiting to invest and have some more cash on hand, you will be happy since you can buy stocks at a big discount.

And that is what makes online stock trades so exciting. - 23223

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