Let’s face it, everyone needs money. People want a simple easy way to make money that allows them to sit back and enjoy life instead of stressing about work. But is there really something like that out there?
Online share trading can be a rewarding way to earn money online. There are some important things to know before you get started, but if you are looking for a simple way to make money from your home, this might be for you. Here are some things to know before you start trading.
Why Trade Online
Trading online can be a very easy way to start bringing in some extra income and even to make a living. There are different kinds of stocks to trade in and different ways to invest. By investing in shares you obtain ownership rights which allow you to collect dividends and participate in shareholder meetings. So, how do you start trading?
Find a Broker or Platform
First, you will need to have your own brokerage account or find an online trading platform. You can find online market share apps to download on your phone or use a platform found online. If you want a little more support you can go through a full-service brokerage account that will buy and sell for you, as well as conduct market research, and give you a commission.
Not all forms of online trading need a license. If you are going into business for yourself with no interaction with any other customers, you won’t need a license. If you are going to be handling any buying or selling of stocks for other people you would have to look into licensing your business.
Open An Investment Account
It may take a few days to have access, but opening an account is relatively straightforward. You’ll need to have some form of identification—like a passport or other government-issued ID—ready. Funding your account can typically be done through various means including bank transfer, debit card, credit card, or sometimes PayPal. Beyond the immediate trading, consider leveraging investment accounts for more than just active stock purchases; they can be a gateway to establishing a portfolio that generates passive income. For those interested in expanding their income streams, it’s worth exploring how different markets can contribute to your financial strategy. For insightful tips on building passive income, particularly in a dynamic market like South Africa, learn more about how to make passive income in South Africa.
Find Your First Share
Now, it’s not all coasting, you do need to put in some research to know what would be a good start for your first share. You want to choose a profitable company that will allow you to turn a profit and that is concrete. As a tip for beginners, don’t invest what you can’t afford to lose. Especially when starting out, you won’t be batting 100. There are risks to investing in stocks.
Sell Your Shares
In order to make decent money, you need to sell quickly. Don’t hold out for the big return or you will lose money. How quickly you should sell depends on what kind of stocks you are investing in.
While there is some research to be done to get started, online stock trading can be quite easy to learn with the right tools. Armed with a computer and your brain power you could take on the market! See what stocks suit your interests, and jump into the exciting world of trading.
Image via Flickr by Saws1990