Buying Stocks Online
When people think about investing, they forget that buying stocks provides you with an ownership interest in the company that is selling the stocks. Usually stocks are traded at a price above the real earnings of the company. This helps the investor to see whether it is undervalued or overvalued.
Another term for stocks is equities. There is no fixed value to it. It is only of as much value as the investors determine through forces of the market.
It is much easier to buy stocks now compared to decades ago. Previously, normal buyers had to call their stockbrokers in order for any transaction to take place. They have to pay them a higher brokerage fee. Then, the stockbrokers would be shouting and making hand signals to see who was willing to buy. However, people can buy stocks online easily now.
There are many things to consider before buying stocks. Is price a major factor? If it is a major factor, you can consider getting penny stocks since they are cheaper. If you are worried about stability of the stocks, you may consider blue chip stocks, but they are usually trading at much higher prices than the penny stocks.
Buying stocks online may be simple, since you are able to do your research online through chart and technical analysis, but there are some drawbacks. Some traders accidentally sell stocks at a fraction of the prices they bought because they had keyed the prices wrongly.
Occasionally, there are technical glitches and you cannot get into the trading platform. If there is volatility in the stock market during that period of time, huge losses may be suffered. In addition, the server must be able to cope with huge traffic at any one time.
If you have not traded shares before, you need to open a trading account with CDP in Singapore. However, the brokerages can help you do that, except that you cannot just download forms from the websites of your chosen stockbroker. You have to sign the forms personally at the brokerage firm.
It is wise to attend courses to help you get familiarise with trading skills. If not, if you have absolutely no idea what you are doing and buy because your friend told you to do so, you may suffer from huge losses.
Sarah Tan - SingaporeProfit.com
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speaking of trading online just to digress a lil which is a more reliable/economical brokerage ?
Zippi (ZIPI.Pk): revenues to a projected target of four million ($4,000,000) in total revenue for fiscal year end June 30, 2009, growing to thirteen million ($13,000,000) in revenue for fiscal year end June 30, 2010
The company is currently realizing 100% month over month increases in revenue from July to August of this year.
hmmm…
i think online trading will get more and more commonplace in the days to come.
if you can’t access your online account when there is a glitch, the best way is to call your broker attached to the account to settle any trade you might be planning for.