So you are ready to head down the road to Tulip fever eh? Well, we have the roadmap here for you. With the allure of the stock market and the re-birth in the post-2008 world, it is clear to see why many are flocking to the ticker take to buy low and sell high.
How do I start trading online?
Simply put, you gotta have the capital baby! cold hard cash. Sure you can start out small with a bunch of penny stocks but when it comes to Wall Street is go big or go home. So once you have some capital you need to decide how you are going to start trading. You could open an individual brokerage account or call a stockbroker to help you invest the funds wisely. Companies like Charles Schwab make it simple to start trading and there are no hidden fees. At $4.95 a trade with no minimum deposit, they are quite fair to newbies.
If you are looking to go it alone but don’t want a brokerage account you could sign up with Forex and start trading in currency to get your feet wet. deltafxmarkets
What kinds of fees or taxes will I have?
When you trade you are subject to capital gains tax. Capital gains tax is the profit you make on a sale. For example, if I buy 2 shares for $2 a piece then sell them for $8. I am subject to capital gains on the $6 of profit. You must pay tax on dividends but it is lower than the traditional income tax rate. Cfd premium
What should I do to get better educated when it comes to online trading?
Get educated. Read all you can on the subject, check out YouTube videos, research strategies for trading and watch Bloomberg or CNBC if you can. Watching the markets in action is going to give you the best education on how the market works and they offer advice on what stocks to buy that day. Having the TV stuck on that station can be your best friend in the early days.
Final words of advice and wisdom
- Never make a deal you are not comfortable with. Trading is a risky world and you are going to make and lose money. Anyone who tells you otherwise is lying to you.
- You are not going to be a millionaire overnight so don’t be discouraged in the onset.
- Don’t trade with money you do not have. Stock’s can be as addictive as slots. If you find yourself getting out of control seek help and stop immediately.
- Make trading a part of your daily schedule, it will excite your life and give you a good burst of adrenaline
- Seek out a stockbrokers club. That way you can make some new friends and get the latest scoop on stocks.
- Insider trading is wrong and you should never do it. If Martha Stewart can go to jail for it, then so can you.
Good luck on the road to Wall Street, and have fun in your new life as a high flying Stock Broker!