Mobile trading is the use of wireless technology that investors use to access various trading platforms simply from their phones rather than the old method of using a computer. This makes it easier for investors to actively manage their portfolios even when they cannot access a laptop or desktop.
The Three Main Mobile Trading Apps
- TD Ameritrade
TD Ameritrade is one of the largest brokerage firms in the US and it offers many mobile trading apps for investors depending on their specific needs. A user will have a similar experience to what they are used to while trading from their desktop. The app is a powerful tool that allows investors to customize their screens, dashboards and even transfer funds. The apps also act as a research tool which enables a user to access useful advice in trading, receive market alerts and watch various videos on how various types of investments function. The TD Ameritrade app is better suited for advanced investors who know how to use the charts, technical indicators, and analysis. This information can help an investor make sensible decisions wherever they are.
This mobile app offers free stock trades to investors. Although Robinhood does not offer a user access to a full range of investments such as mutual fund, it still functions best for stocks and they recently added support for Bitcoin investing. The main focus of Robinhood app is to provide an easy way for investors to track their stocks on their own watchlist. There are no commissions or trade fess required. One may also wish to upgrade to the premium Robinhood Gold account in order to be able to extra features such as the margin trading and receive extended hours in trading.
This is a great app for beginners in the trading space. The app tracks regular spending through a link back to the user’s account and the remainder of purchases is transferred to a user’s Acorn’s account to invest. There is also a manual way to transfer funds to an account. As long as an account has funds, Acorns will build a portfolio of stock and bond investments based on the answers given from a brief questionnaire a user is asked to complete during the sign-up process. This app automatically builds an investor’s portfolio into a broad and diverse one according to their personal investment goals.
Stock Market Basics
Online brokerage firms have made it possible for many investors to easily access stock trading. Prior to this advancement, people often relied on the services of a stock broker to trade on their behalf. However, now it is possible for users to buy and sell orders themselves within seconds thanks to the introduction of computerized trading platforms.
Buying and selling stocks of a company can instantly make an investor earn a fortune. No matter how lucrative that sounds to be, it is all too easy to lose that money. In order to be a successful trader, one has to familiarize themselves with the various trading tools, master the theory behind it and learn how the daily reports have a bearing in market shifts.
Just like in all other businesses, the stock market function based on supply and demand. Purchasing stocks can be termed as having a share in the ownership of a company. It is the hope of an investor that other traders will also want to own a share of that company. When more people want to purchase stocks, then it means traders will compete to win it thus building up the sale price. This can also be as a result of improvements in the company’s value and potential as it demonstrates a company’s potential.
Researching and choosing stock involves two main schools of thought:
- Fundamental analysis. This is the use of a firm’s public statements and financial reports to investigate the health of a business. Other important tools for such an analysis include balance sheets, yearly and quarterly earnings, income statements and news releases. Such information is readily available online and therefore it is easy for an investor to read tutorials on market trends and media publications.
- Technical analysis. This is based on the belief that variations in stock prices follow a certain pattern that traders need to learn in order to profit from it. However, this method of choosing stocks is not as popularly practiced as fundamental analysis. On the other hand, many traders will combine the two techniques when choosing stock. It is important for an investor to choose a company that has sound fundamentals instead of just relying on technical indicators.
Personal stock Trading Services
Experts recommend that an investor first decide which online trading service they want to use before they begin to buy and sell stocks. Choosing carefully a brokerage partner can have a positive impact on their success. An online trader needs to know the price, service and investment choices of a brokerage partner before starting to work with one. There are research resources readily available for investors to help them make sound investment decisions and not just rely on their instincts or suggestion from a friend.
An investor needs to consider the cost of each of the services provided by the brokerage firm and evaluate the level of support he will receive wherever he needs it. Beginners may wish to start with a firm that is ready to provide personal advice for his investments. With time as he perfects his skills n the industry, the brokerage firm should be able to offer tools that will assist him to engage in advanced trading. Popular trading services known to provide support are:
- TD Ameritrade
Companies such as ShareBuilder operate similarly to a bank as they offer ATM cards, thus giving an investor access to non-invested money. One can also invest their cash in a money market so that they earn a slightly higher return.