If you are looking to make some money to set up your future or simply to find a windfall for right now, you should learn how to play the stock market online. Buying stock is a great way to make money, from a few extra rand to a large fortune that will sustain you for many years.
However, it does require some expertise, some research and a lot of risk. You have to be willing to take chances and you are very likely to lose some money at some point if you are interested in doing this seriously. You could play the stock market with a small amount of money only or you could risk a very large sum and hope to gain big.
What to look at when deciding whether to buy stock with a particular company
- It is important to look at three key factors before buying stock with any company: the company’s stock price over the last few years, its volatility and its moving average. A large amount of movement and a large amount of volatility can mean one of two things: a huge amount of money to gain, or a huge amount of loss to incur.
- Choose the right online broker to help you learn how to play the stock market online. It is a good idea to go with a reputable company and an honest, qualified individual with lots of experience and a good track record. You want to be able to trust the advice of the broker you are working with and to have a good relationship with them. Set a target price to buy the stock that you want at. Use online stock market commands through your broker so that you can ensure that you get the stock you want at the price you want it at even when you are not near your computer.
- Be disciplined with the way you play the stock market. It is essential to set goals for what you want to make from any stock, but it is very tempting to raise those goals out of greed when the stock price goes up. Many fortunes have been lost through people wanting too much too quickly. The trick is to accumulate carefully and to reach your goals.
- Make sure that you practice playing the stock market before you do it for real. There are many virtual stock markets that you can practice on to ensure that you are ready.
- Be aware of the risk you are taking. Any time that you play the stock market, whether live or through the internet, you are putting your finances at risk. While some stock has lower risk than others, there is no completely safe and secure way to play the stock market. The nature of the market is to change, and that change could mean you lose money or you gain money.
- Always consult a professional. You would be a fool to make decisions about which stock to buy by yourself if you are not an expert yourself. There are so many professionals who really know what they are doing that you could benefit from. Many individuals are happy to offer guidance and advice and you should definitely take it where you can.
- Be careful. The above point being said, you should always use common sense, logic, do your research properly and not follow advice blindly. Get second or even third opinions, think carefully, take a bit of time to decide and use your head.
- When you have made a decision, stick to it. Make sure that you stand behind your choices and do not become wishy washy in the way you play the stock market.
There are several stock market games that you can play online to practice for the real thing before you begin playing the stock market online. One of these stock market simulators is The Stock Market Game and can be found at www.smgww.org/.