Many investors will tell you that trading in stocks might be the good old-fashioned way of investing, but it works. Regardless of the ups and downs, and there are many on the rollercoaster that is stocks; stocks are an exciting game that has a place for anyone. In the age of the information superhighway there is a whole world of varied stocks that you can build wealth with. You might only make enough money to use in your next investment but with online stocks the door is truly open.
Online stocks are a huge market. You can start online with cheaper penny type stocks and you can even purchase some of the high-end stocks for a couple of hundred dollars a share. Like most online shopping, most of the stocks that are for sale online are available in the real world market, but they cost more. Because of the lack of human contact and advice given, buying online stocks gives you the opportunity to get into the game without the high fees of your average broker. The online trader is also completely in control or his or her stocks.
Trading online does mean that you will have to be familiar with certain terminology. To do so we have compiled a list of some select of the most common available online stocks and their meanings. We suggest you take these means and do some more research. Let’s look over what kind of stocks can be brought and purchased online and in the real life stock market.
Penny Stocks: While not all ‘penny stocks’ actually cost a penny, they are the cheaper stocks on the market and are considered cheap and dirty by some. Others however have made large profits by trading in penny stocks, because once the price raises you can sell the many stocks you have purchased and make a return. Penny stocks are normally available for upstart or new companies who want to offer their stocks at cheaper prices to get them off the floor. Trading in penny stocks is a common form of online trading.
Blue Chips: Like their name suggests blue chips are premium stocks. Blue chips are the stocks of companies whose names you hear every day. So if you look at the steel that your fence is made from or the airline you fly with, you will probably find that their shares are blue chips. Because of the ‘assurance’ that blue chips will continue to grow, they generally cost a fair bit and are amongst the highest priced stocks. Blue chips are known for being strong and either maintaining their price or slowly growing over time. Blue chips also have the added value of climbing rather rapidly after a fall or at least recovering quickly.
Bonds & Futures: Bonds include municipal offers and can be issued by the companies. Futures however normally relate to farming crops, so if the oranges crop is doing well the orange futures will also do well. Futures also include wheat, livestock and other farming products.
If you really search you can buy almost any kind of stock online, all it takes is someone willing to sell them. The availability will depend on which website you are using and what they have access to.
Like any form of stock trading, just because you can now buy and sell your stocks online, that doesn’t mean that you should forget all about being careful and doing your research.