Online investing is simple the act of investing online, just as the name suggests. Investors who trade online have the advantage access to their accounts and near-instant transactions of their trades. For the lay investor, online investing offers flexbility and the ability to act with the market without delays.

However, online trading may be quick and easy but it takes time. With one click, you can buy and sell stocks from any number of places. You must do your homework as with any investment opportunity to make sure you make wise decisions with your online investments. Before you think about trading, it is a good idea to know about what you are buying or selling and the risks associated with your online investments.

Setting your price limits is imperative - know the different between market orders and limit orders. A buy limit can only be executed at the limit price or lower; With a market order, you cannot control the price at which your order will be filled. So, if you have a stock that was originally offered at $10 and you don’t want to pay anything over $25, you need to place a limit order for $25. Remember that your limit order may never be executed because the market price may increase past your limit.

It is also worth remembering that online trading is NOT instantaneous. There are faults with technology which you must take into account. Examples include:
- The ISP may be slow
- Internet traffic may be high meaning slow transfer rates
- Capacity issues with your ISP account may mean your transfer rates are slow

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