Stock Trading

Get the information edge Don't jump into stock trading blindly. Tap the rich veins of investment research, data and opinions available online.

I recommend:  Market information sites such as CNBC, MarketWatch and Yahoo! Finance have a broad range of helpful information and tools on stock trading. Morningstar is an 'A-List' provider of independent research for individual investors (as well as financial advisors and institutions), including a variety of stock and mutual fund publications, websites and software. Brokerage firm customers get access to stock research and tools that vary greatly by firm. Leading discount broker Charles Schwab, for example, functions more like a full-service firm by providing stock research and trading recommendations. Their 'Active Trader' service offers a series of advanced stock trading tools, including software, data, proprietary research and specialized support. TechniTrader and Investools are among the independent firms offering stock trading education, tools and strategies. Value Line is also an excellent source of stock trading information, as is Better Investing.

Trade stocks the mutual fund way Although mutual funds are not meant to be actively traded, they offer a convenient way to easily buy and sell shares in hundreds of different professionally managed portfolios.

I recommend:  Today there's a mutual fund for almost any type of investment you can imagine, from large U.S.-based stocks, to health care shares, biotech, real estate or even emerging markets in distant corners of the globe. Choices are limited only by the imaginations of the mutual fund managers who dream them up and launch new funds regularly. The U.S. Securities and Exchange Commission (SEC) has a handy primer on mutual fund investing. The Mutual Fund Education Alliance offers mutual fund investing basics, as well as performance information and news on thousands of funds. A few top mutual fund families include Vanguard, T. Rowe Price, Fidelity and American Funds.

Set up your stock trading account Your choice will depend on convenience, costs and the type of stock trading you want to do.

I recommend:  In Wall Street vernacular, a 'trader' is someone who actively buys and sells stocks often, perhaps daily. If the 'active trader' label fits you, then having an online discount brokerage account with low commissions and good service may be best. Discount brokers, including Charles Schwab, Ameritrade, Scottrade and eTrade can all provide the accounts and tools you need to buy and sell stocks with low commissions. Your bank may offer investment brokerage accounts as well -- convenient since you can keep it all in one place. Not all banks offer brokerage account services. A few that do include majors like Citibank, Wells Fargo, Bank of America, Chase, Wachovia and others. If you want the hand-holding and investment advice that full service firms offer, consider big names like Merrill Lynch and A.G. Edwards.

Consider 'direct access' trading Direct access trading eliminates investment intermediaries and connects you directly to investment markets.

I recommend:  This is not the same as simply trading online via an online brokerage firm. Direct access trading goes a step farther by connecting you directly to the market, where you are then in charge of managing your own investment order flow live on the markets. This requires far more time and knowledge available via stock trading courses and services such as Online Trading Academy and EliteTrader.

See our other stock investing How-To Guides How-To Guides on Work.com and Business.com can help you locate all the tools and resources you need to be successful at investing in stocks.

I recommend:  Other top-rated How-To Guides on successful stock market investing include: Stocks (Equities) and Stock Investing; Stock Quotes: Free online stock quote services abound. And add-ons can dazzle; and Online Stock Trading: How to buy and sell stocks like the pros.