There was a time when buy orders for stocks went out over the wires. They were passed on to brokers in the market place and executed. Today it is still very much the same. There are some wireless relays involved in many data transfers today no doubt, but buying shares online is quite similar to sending a telegraph or placing a phone call to your broker, but the full potential is creating a completely new experience for many people.
For some the possibility of buying shares online means that they have greater control over the performance of their savings and their retirement. For other it means that there is a new career possibility for them that they can pursue from home.
With the full potential of online trading you are capable of buying shares online, but you are also able to do all of the research that you need to do to prepare for those trades. The Internet is allowing us to transfer a more diverse variety of data much quicker than possible before. This means that you can view charts that track the stock price of stock FNBN over one year then overlay Bollinger Bands technical indicators within seconds. That is the potential of the Internet. You can calculate purchase points and sell points and develop your trading strategy all before buying shares online.
Then, of course, when it comes to placing the order you have the same speed at your disposal. From California to execution on the floor of the New York Stock Exchange in minutes or less in some cases. There are a world of possibilities, including foreign markets and after hours trading, that allow you to trade when you want and where you want.
There are still risks involved in investing though. The realities of trading have not changed that significantly. You can still make money with your trades, and you can still lose money with your trades. You are also free to seek out stocks that offer dividends that may represent guaranteed income or fixed income options. Nearly any financial option that you have had access to direct through a broker can be taken advantage of online. In most cases you will not have to open a new brokerage account. Most brokers offer the option of buying shares online with reduced commission fees.
You can access a wealth of financial research data and tools online for free. In addition a number of brokers offer specialized data and reports on specific stocks. These may be free to individuals that hold accounts with them. Some brokers and sites also offer stock tips for free. These should generally only be considered as recommendations. You should perform your own research to verify that the stocks are right for your investment goals and principles.
If you are ready for constant control of your money, the Internet has something for you. If you are ready to steer your finances at the speed of technology then online trading has something for you.