Investing in stocks using apps: A guide for beginners
Stock trading is now at its peak. Thanks to the fact that the Internet opened up so many possibilities for all of us, the stock trading industry decided to take full advantage of it. Hence, it transferred to the online world where every individual can have the chance to invest his or her money after careful research.
Trading apps are at the heart of trading online and they have tons of fantastic advantages. They provide you with great market insight, 24/7 access, insight into the latest developments, and they allow you to have full control of the process. With that being said, we wanted to provide you with a small beginner guide that will help you invest your money smart using these apps.
Determine what type of investor you are
The first step in your stock trading journey is determining what type of investor you are. Would you rather invest in stocks and wait for a longer period for them to grow or do you want to invest and re-sell fast so that you can have a quick turnaround?
On the other hand, many investors want to invest their money and keep constant track of their money, while some want to invest and ‘forget’ about them until it is time to sell them. Answering these questions to yourself will give you a layout on the type of investor you are and thus, help you filter potential investments.
Using trading apps
Up until a few years ago, the process of investing in stocks was completed through brokerage firms. A brokerage agent would be assigned to you and you would have to deal with him or her. All of these formalities made investing quite frustrating and stressful.
With trading apps, all of that changed. Once you choose the best stock trading app UK, you will have full control of the process because you won’t have a brokerage agent to tell you where you should invest your money. Instead, you will be able to make an educated decision based on your research.
Trading apps have numerous benefits such as easy access, 24/7 availability, notifications on the latest market developments, fast transactions, global reach, and numerous accepted payment methods. All you have to do is register at one of these sites.
Don’t overreact with the money
Keeping tabs on the money that you are investing is extremely important. Because many beginners are not familiar with how the process goes, they are often caught in the wing and end up investing far more money than they’ve originally thought.
Now, this may prove to be a good idea, but it is a risky move. That is why you should set up a budget and never go over it. One additional tip that we can give you is to set up an emergency fund. Why? Because the world of investing in stocks is not always black and white.
If that is your main source of income, a time when your investment falls through might come. Now, of course, we are not rooting for that to happen, but it is important to keep it in mind. An emergency fund will allow you to stay on the ground until you build back up.
Take fees and commission into account
The last thing that deserves a mention is fees and commissions. Of course, when you are using trading apps or any other means of investing money, for that matter, fees and commissions will be applied. Every time you trade a stock, whether that is buying or selling, you will be charged with an additional fee. They can be as low as $2, but they can also be a few times higher.