The internet has provided many opportunities for people all over the world to make money online. Once people began to make transactions online the proverbial “how we can make money on this” began. And it is always tempting for college students to seek online jobs or other more entrepreneurial ways to make money on the internet. One way to make some money online is to trade stocks. This article will discuss a few companies that allow you to trade stocks online and some tips to help you make money doing it.
Risks of Selling Short
Buying and selling stocks online will require some monetary investment first. You can’t buy stocks unless you have money to make the initial purchases. Some sites will allow you to sell short some stocks on margin, but I would strongly recommend against that. Selling short is the process by which you actually sell a stock because you think it will lose value and then buy it back after it’s gone down. This allows you to make a profit. A transaction such as this can expose you to some scary possibilities if the stock increases, however. Remember you are selling it short, meaning you make money when it drops, but the opposite is also true. If the stock starts to gain quite a bit you will be on the hook to buy it for quite a bit more, plus you will face the prospect of a margin call.
Recommended Online Brokers
Some sites I would recommend if you want to try to trade stocks online to are E*TRADE and Ing Sharebuilder. Both of these sites help to give you the information needed to do research on the stocks you wish to buy or sell. Ing’s Sharebuilder account will allow you to set up automatic trades for as little as $4 per trade. Their regular price for this is $9.95. E*TRADE does a nice job at the beginning by giving you a certain amount of free trades. For someone starting out investing in the stock market, these free trades could be very helpful.
If trading stocks is something you want to do to make money online, here is my advice: Come up with at least $10,000 that you can afford to lose. The goal is to make money, but be prepared to lose it as well. Open an E*TRADE or Ing Account. Try to pick 10 different stocks to invest in. Get to know the companies and their fundamentals. Understand and be able to explain why you wish to invest in these particular companies. Once you are confident in why you want to invest in those companies then start accumulating their stock.
Buying and selling stocks online can be a fun and educational way to make some money using the internet. But I would be very hesitant to invest any money unless you can live with losing a chunk of it. Consulting your financial professional and asking their opinion might be a good idea. You’ll want to rely mainly on your own research though. And I recommend learning as much as you can about investing before putting any money in the stock market.
Stephen writes on a variety of financial topics including ways people can earn money from home using the internet. For more information about how to make money using the internet, as well as locating online jobs for college students, please visit his facebook page.