Buying Stocks Online

The DOW has passed the 11,000 level this past week and many are wondering if the ride up is over or not. If you’re one the them that have been buying and selling stocks over the last ten months, then you have most like made a good amount of capitol in that time frame. Buying stocks online during this climb on the major indicies has made investors and traders grow their portfolio. Is there still room to make money with the stock market being this high after being as low as 6,600 just nineteen months ago?

The answer to that is YES. There is always a way to make money in either a bull or a bear market. As long as you learn the different trading techniques and properly do your research, it’s very likely to increase your portfolio.

If you’re an investor, you typically buy stocks to play long (looking for the stock price to grow). If that’s the case you need to see a substantial pull back on the stock price before you buy into a position. I consider a good pull back at about 5-8% from it’s recent high. Too many stocks have gained some good ground in the recent past and you have to take into consideration that other investors who have been in the stock for the climb will be looking to take profits before the pull back happens.

If you’re a trader, It doesn’t matter what type of market we’re in. You’re looking for an opportunity to either buy shares to go long or you’re out there shorting the shares expecting the pull back. Traders are people who are more into trading stock on the short term basis. They don’t look to be in a company’s stock for too long. They are in it just waiting for a catalyst (an event) to happen so they can profit on the moment and after that they will get out of those positions and take profits.

Once you’ve been investing in the stock market and learn more investment basics on how to buy and sell stocks in different ways, you’ll most likely be more of a trader than an investor. Either way, if you study the company you’re going to build a position in, you’re going to do just fine or better.

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