Online Stock Trading

Knowing what your risk tolerance and investment style are will help you choose investments more wisely. Online stock trading is a great way to help you make money online, and transition yourself to making your own money, instead of letting someone you do not know in an hyip program control for you.

Naturally, if you find that you have a low tolerance for risk, your investment style will most likely be conservative or moderate at best. If you have a high tolerance for risk, you will most likely be a moderate or aggressive investor. At the same time, your financial goals will also determine what style of investing you use.

If you are saving for retirement in your early twenties, you should use a conservative or moderate style of investing – but if you are trying to get together the funds to buy a home in the next year or two, you would want to use an aggressive style.

Conservative investors want to maintain their initial investment. In other words, if they invest $5000 they want to be sure that they will get their initial $5000 back. This type of investor usually invests in common stocks and bonds and short term money market accounts.

An interest earning savings account is very common for conservative investors.
A moderate investor usually invests much like a conservative investor, but will use a portion of their investment funds for higher risk investments. Many moderate investors invest 50% of their investment funds in safe or conservative investments, and invest the remainder in riskier investments.

Investing without practice or prior knowledge will lead you on a train wreck to financial terror. You will need to practice and 'know the market, before risking your hard earned money in it. Warren Buffet didn't become rich by gambling his money into stocks, he invested into growing companies with potential, such as Coca Cola, that made him create his wealth and become the richest investor, and one of the richest person in the world. Be The Next Buffet!

A great tool I use, and you should too is Updown.com, where they give you 1 million in virtual money for you to try out the stock market, investing in whatever companies you like. They offer great visual graphs to see your performance, and also offer a contest monthly where you could earn money 100% risk free!