To trade stocks online one must have the complete knowledge about the companies and the prices of the stocks one is going to buy. The prices keeps on increasing and decreasing. It is totally dependent on the supply and the demand of the stocks from the company. Since there are more interested buyers than sellers, the stock price will increase. When there are more sellers than buyers, the price will fall. A stock’s price is a reflection of the investment community’s opinion of the stock. The price is not necessarily the actual value of the company. One should also have the appropriate knowledge about the terminology of stock trading. These terms help you decide exactly what type of buy or sell order you want to place with your broker. The terms allow you place certain conditions on your order to buy or sell stock. One should look into buying a mutual fund. It is pool the money provided by many investors. The pool can be used to buy a variety of investments. You can select a mutual fund that invests in the stocks of many different companies. When you invest through it, you get a stake in every stock the fund invests in. This can be a lower-risk alternative to buying stocks individually. Before buying stocks we must be aware the method of investments and also make the list of companies which are in this competition from a very long time. The first step is to find a company to research. To do this, read investing publications and websites, like the Wall Street Journal or Investor’s Business Daily. Similarly, websites can provide ideas for stocks that analysts rank highly. We should carefully choose a business that performs well from a long time. Once you find a good candidate, you should review some key financial indicators for the company. Compare those indicators with the firm’s competitors to see how they compare. A few specific indicators are widely used to assess the investment value of a company. Once we are familiarize with the concept than only we should proceed. You can think of a stock as a machine that is designed to create profits. If the machine performs well and is able to make more profit, investors view the machine as more valuable. The most important financial ratios for a stock’s value relate to earnings.

trade stocks online
New world of online brokers, which replaced the high-commission firms.
Now with debit and paid cards , banks Electronic and mediation Electronic and corporate sites money transfer and electronic markets formed a large community of investors via the Internet and , of course , the stock market is the most attractive market for these investors because it ’s easier to handle and do not require field experiences and the possibility of investing relatively small amounts , and therefore the possibility of diversifying investment with a large number of options

In the age before the Internet was your broker is the source of information is now essential to research does not require more than a simple click of a mouse.
Now you not only easily search for companies, but also the trade-offs between them by a large number of technical methods or sites that provide technical analysis services or even communities exchange views customers to provide multiple choices for investment.
After reaching the decision to purchase the procurement process itself does not require technical expertise.
The simplicity of online buying open market, not only among the usual customers even for large segments of the young and employe who research for an easy and simple investment.

Open a stock broker account
Find a good online stock broker and open an account. Become familiarized with the layout and to take advantage of the free trading tools and research offered to clients only. Some brokers offer virtual trading which is beneficial because you can trade with play money (see #9 below). A great tool for comparing online
Read books
Books provide a wealth of information and are inexpensive compared to the costs of classes, seminars, and educational DVDs sold across the web. Here on the site we have a full list of 20 great stock trading books for investors to consider. My personal all-time favorite is How to Make Money in Stocks by William O’Neil, founder of CANSLIM Trading which is pictured below.
Find a mentor
A mentor could be a family member, a friend, a past or current professor, co-worker, or any individual that has a fundamental understanding of the stock market. A good mentor is willing to answer questions, provide help, recommend useful resources, and keep spirits up when the market gets tough. All successful investors of the past and present have had mentors during their .

Forums can be another source for question and answer. Two recommendations include Elite Trader and Trade2Win. Just be careful of who you listen to. The vast majority of participants are not professional traders, let alone profitable traders. Heed advice from forums with a heavy dose of salt and do not, under any circumstance, follow trade recommendations.

5. Study the greats
Learning about the greatest investors of years past will provide perspective, inspiration, and appreciation for the game which is the stock market. Greats include Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones, among others. One of my favorite book series is the Market Wizards by Jack Schwager.
trade stocks online