Online Trading Guide To The Stock Markets: Part 2
This article is a continuation of Online Trading Guide To The Stock Markets.
Choosing a Stockbroker Suitable for Your Trading Needs
In order to buy or sell stocks, you will need to find a good stockbroker suitable for your trading style. Essentially, there are two types of brokers for trading the financial markets: the full-service brokers, like Goldman Sachs and Morgan Stanley, and the online discount brokers, like Ameritrade and Interactive Brokers. Read Overview of Choosing a Stock Broker, followed by Online Discount Broker Comparison Tips and then Full Service Broker Comparison Tips in order to get a good idea on which type of broker is suited for your specific trading needs. Remember, cheapest may not always be the best for you.
Stock Trading Software
Advances in personal computing power have enabled software developers to create stock trading software so advanced that it can track in real-time, tens of thousands of stocks and other financial instruments globally, looking for those that match your specific criteria. Only half a decade ago, this would have required the huge resources of a big-time hedge fund but now all this software & computing power is available to the trader at home. These articles, Overview of Trading Charting Software and Data Packages and What is the Best Technical Analysis Software, will give you a more detailed look into what is available.
Stock Trading Hardware
The next item to consider for trading stocks online is your computer hardware. In order to know what kind of system or how powerful a computer you need, you first have to identify how will you be monitoring the markets i.e. are you going to daytrade, are you going to scan the market in real-time looking for opportunities or are you going to be an end-of-day swing trader? Casual investors do not need specialized systems as compared to, say a full time professional trader monitoring hundreds of stocks, futures and options. The articles Best Computer for Stock Trading, Real-Time Trading Computer System Requirements and End-of-Day Trading System Requirements will break down the needs of the different groups of investors and will recommend appropriate systems for the different needs. Active traders should seriously consider adding Multi-Monitor System Setups for their trading so as to be able to view a greater number of stocks in real-time. Some other stock trading hardware considerations include How Much RAM Is Enough For a Trading Computer System and CRTs vs LCD Monitors for a Trading Computer System.
Stock trading can be a very profitable endeavour when a trader has acquired the necessary skills. A good stock trader is truly a resident of the world as he can be anywhere in the world and trade any market through the power of the internet. The main factor that separates the mediocre traders from the great ones is the mindset. You can be technically proficient in all aspects of the market but if you are not ready to receive the riches that the market has to offer, you are bound to face obstacles. Mark Douglas' book Trading in the Zone is a must read for traders looking to improve the psychological component of their skills.
With that, here's wishing you a great journey and may your road to becoming a successful trader/investor be a smooth one!