“Rule No.1: Never lose money. Rule No.2: Never forget rule No.1." - Warren E. Buffett

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Monday, September 24, 2007

online trading

Now a days the need for an extra income and the need for the luxury among people had paved way for looking for more no of chances available for earning and the first and foremost of them all seems to be online trading,The market has become more accessible, but that doesn't mean you should take online trading lightly. In this article, we'll look at the different types of online trading accounts, as well as how to choose an online brokerage, make trades and protect yourself from fraud.
Now, plenty of "common" people own stock. Online trading has given anyone who has a computer, enough money to open an account and a reasonably good financial history the ability to invest in the market. You don't have to have a personal broker or a disposable fortune to do it, and most analysts agree that average people trading stock is no longer a sign of impending doom.
Before we could go for a jump start to the diffierent types of online trading aspects it is better for us know about some basics of online trading. let's take a quick look at the basics of the stock market.A share of stock is basically a tiny piece of a corporation. Shareholders -- people who buy stock -- are investing in the future of a company for as long as they own their shares. The price of a share varies according to economic conditions, the performance of the company and investors' attitudes. The first time a company offers its stock for public sale is called an initial public offering (IPO), also known as "going public."
Then, the profit made by that business is being shared among the share holders in the way of dividents,normally the price of the share of a company varies with certain aspects,mainly, according to economic conditions, the performance of the company and investors' attitudes.In this the stocks that pay frequent income by way of dividents are called income stocks, the stocks that a company which reivests for the growth of the company furthermore are called growth stocks.
Here, the broker is a person who buys and sells these shares through an exchange for a commission charged from the consumer to do so,he may do this on the trade floor or or can make trades by phone or electronically.
How to start an online trading with this much information we will see in the next blog.