No one knows where the market will head this year or if the wrangling in Washington will lead to real progress on the deficit. But there is one financial trend we do know is not changing anytime soon: Retail investors are overpaying their brokers for trading online. A recent NerdWallet study found that over 17 million investors with the three largest online brokerages – Schwab, E-trade, and TD Ameritrade – are paying more than $1.8 billion every year on trading fees and brokerage services that most of them don’t need. Here are five brokerage secrets you should know before trading online:
There is an old saying in business: “Fail to plan and you plan to fail.” It may sound glib, but those who are serious about being successful, including traders, should follow these eight words as if they were written in stone. Ask any trader who makes money on a consistent basis and they will tell you, “You have two choices: you can either methodically follow a written plan, or fail.”
Want to trade but don’t know where to start? Millions of neophytes try their hand at the market casino each year, but most walk away a little poorer and a lot wiser, never reaching their full potential. The majority of those who fail have one thing in common: they fail to master the basic skills needed to tilt the odds in their favor. Take adequate time to learn these and you will be well on your way to booking short-term profits.