Online Trading Tools

While the majority of investors will be satisfied just trading shares, brokers should offer a variety of online trading tools to help maximize gains and keep losses as low as possible. The type and availability of these tools will vary from one broker to the next, and some brokers charge a fee to use these services.  You may not use these tools to start with, but it’s still a good idea to take a look at what’s out there. As you get used to trading online, you’ll be more likely to use these online trading tools, which can include:

• Alerts- your broker will send you an email or text message when one of your stocks reaches conditions that you’ve already set forth. These can include price, volume, etc.
• Limit orders- you set a limit on the price you’re willing to pay for a stock or sell it. You may want to buy a stock, but only when it reaches a price that you feel is fair.
• Market orders-trades where you’re willing to accept the going rate for the stock.
• Conditional orders- allow you to set any number of conditions, and if they’re all met, a buy or sell order is placed. These help you trade carefully.
• Stop-loss orders- are meant to keep you from paying too much or getting paid too little for a trade.

If you’re new to investing, you should learn the process before you use online trading tools.