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Online trading, in a nutshell, is buying and selling stocks, securities, currencies, and options through a brokerage’s online platform. Brokerage companies are authorized entities that facilitate these buying/selling actions between traders and their markets. For their service, they take a small cut of transactions. Luckily, there are many online brokerage platforms that operate efficiently and cheaply, offering traders low commission cuts. You can buy/sell stocks on long term trends, typically using retirement portfolios (an IRA account is a good example) provided by companies like Fidelity. This is targeting the powerful tool of compounding interest, a tool that can earn serious wealth over a long amount of time. Accounts like these are usually very tax friendly, and allow for you to set a risk level and stops (more on that in “The Power of Compound Interest” blog). Another strategy is day trading. This strategy requires more work, knowledge, and it is inherently more risky. However, this strategy allows for short term profits and a chance to make serious money quickly. There are many online mentors and programs out there that can teach you how to become a successful day trader. Click HERE {investopia} for a free informational video, from a program that offers “step-by-step” instructions for six different types of trades.  There are a huge selection of brokerages and strategies out there, make sure you properly educate yourself before delving into it.

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