How To Invest In The Stock Market Online

Learning how to invest money in the stock market can be a very scarry thought, let alone using the internet to invest your hard earned money. I have been investing online now for several years and have found it to be trouble free as well as very easy to do, as long as you have the proper knowledge.

My first suggestion to you would be to read as much as you can about investing first, their are many theories out their on what to do with your money and frankly most of those theories will just lose your hard earned money. Dont plan on making a fortune overnight it just wont happen, but you can gradually build up quite a nest egg over time. The greatest thing about investing online is you are able to cut your expenses to almost nothing if done right. The internet has helped the average person be able to buy for small fees, single shares or fractional shares. Before being able to invest via the internet people would go to a broker and would pay say 50 dollars to buy some stock thats all fine if your buying 1000 dollars worth of stock at a time. Now that we can invest online people with very little money can start out investing as little as ten dollars a month.

Their are some great books out their as well as some online resources that will help educate you in the process of buying stocks and saving on fees. One of the best ways for the small investor to begin is to start with buying drips (Dividend reinvestment programs) dividends that you are paid are automatically reinvested into more stock it is a great way to grow your money with low risk. Some of the online investment services will let you start by buying fractional shares that is how you can start with as little as ten dollars.

When buying stocks online you should consider this, when are you looking at retiring? I have seen countless people who are ten years away from retiring pull out their money when the economy is bad because they are afraid to lose money, only to put it back in when the economy is doing great, now does this make sense?  When the economy is down stock prices are down when the economy is good stock prices are higher. The only way you are going to lose a portion of your money is if you pull it out when your stocks are bottomed out. You will lose even more when you buy back in when prices are higher. I am still dumb founded where people get their idea to pull out their money, the only way I can see pulling out your money is if your invested into a highly risky company and your worried that they are going to go bankrupt and close down. Otherwise the stock market is like a roller coaster it goes up and down, WAIT until its up if you must pull out your money.

In tuff times like these where the economy isnt doing so good, I BUY STOCK LOTS OF IT!! Why you may ask, because I get a huge discount and I am in the stock market for the long haul. I have never lost any money in the stock market because I have never pulled any out I will wait until I am ready to retire and wait for the market to be good. My money just keeps growing and growing , I reinvest all the dividends and I dont buy stock in risky companies. I choose companies that are solid and have been my favorite brands over the years, kellogs, walmart, pepsi, my local power companies etc....

My dad was getting close to retiring and the stock market bottomed out quite a few years back and he was going to take his money out, I asked why are you going to take out your money, he said because I lost 5,000 dollars I dont want to lose anymore. I asked him how did you lose money he said well my stocks went down, I said do you ever think they will go back up in the next few years, he said probably. I explained to him you havnt lost anything unless you pull your money out its only on paper dont make it real, stay the long haul and it will rise again and it did. My dad ended up making a lot more money and only retiring a year later then he wanted to.

When you invest for the short term you risk a lot more because you are hoping for instant gains, I personally know people who buy and sell all the time anytime their is little fluctuations in the market. You also have a cost everytime you buy and sell so everytime you make a transaction it has a cost associated with it. People like to gamble and its no different in the stock market, they want that one big hit problem is that great big hit may never come. I have friends who have lost thousands trying to get that one big hit and yet they keep buying and selling, sometimes they make a little bit and then they lose a lot, over all they have lost alot more then they have gained. They just dont quite get it, and they wonder why I have thousands of dollars growing quietly one dollar at a time, they cant see how a few dollars can turn into many overtime. 

Like I have said before you should gain as much knowledge about investing before you actually do it, knowledge is power. Here are some great Investing Resources And Books to read on investing.

1. Julie And Debbies Guide To Getting Rich On Just $10 A Week (Deborah Rosen Barker, Julie Behr Zimmerman
2. Still! The Only Investment Guide You'll Ever Need (Andrew Tobias)
3. More Wealth Without Risk (Charles J. Givens)
4. dripinvestor.com

I have listed the online investment services below that allow you to buy single shares and fractional shares with very small fees, so go get your nest egg growing.