There are three main types of share trading software and each is very different from the others. These three types are tool boxes, grey boxes and black boxes.

But not every piece of share trading software can deliver on its promises, and users need to approach with caution.

The way tool box software works is to allow traders to assess price action and to apply technical indicators to help in determining opportunities in the market. Basically, the tool box software categorises information (for example, company earnings) efficiently to inform traders before taking action in the market.

Grey and black boxes are a different species, however, and require far less user interaction and decision making. In essence, these systems run on ‘auto pilot’. The way they operate is to provide buy and sell signals based on a formula.

The main difference between grey and black boxes is that the grey boxes reveal the details of how the trading signals work, and the black boxes do not. The effect of the black boxes on novices is to appear secret and special.

Many experts warn against using grey and black boxes, and not just because they cost exorbitant amounts of money to buy.Tool boxes, however, are widespread and very useful.

The good news is that setting up an online share trading account is a relatively easy, hassle-free exercise.

But before you sign up for a new account, you owe it to yourself to do a little research and find an online broker that suits your needs and financial position.

For this reason it is worth reading widely about the different features and prices on offer from the various stockbrokers operating in the market.

Generally speaking, online share trading accounts have cheaper brokerage fees than traditional brokerage firms. Some services will charge you as little as $17 or $18 for a trade up to $5000 value.

This means that using online brokerage services you could begin your trading career with as little as $1000.

The flipside, of course, is that with online brokers you get far less investment advice and support than you would from a traditional broker.

Traditional brokers have far greater costs involved but can also accelerate the learning of new traders by lending their wealth of experience and knowledge to your trades.

It is a good idea to find out about both online and traditional brokers before you commit to one or the other.

If you develop a talent for online share trading, you could take it to the next level and start your very own home-based share trading business.

Online share trading is a particularly attractive endeavour for people with plenty of talent but who have grown tired of working in an office.

The great advantage of online share trading, of course, is that you can work from the comfort of your own home. You won’t have to report to a boss and you won’t have to wear a suit every day. In addition, you control the hours you work and can make them flexible to match the other parts of your life.

If you are interested in becoming a home-based day trader, your first task should be to read as thoroughly and as widely as you can about online share trading.

There is no shortage of useful books on the subject, and you could also start off be opening a fantasy share trading account.

Fantasy share trading is a brilliant innovation that has allowed thousands of people to learn the ins and outs of share trading without risking their own money.

Being a successful online share trader is not beyond you, you just need to get the ball rolling and you will be in your element in no time at all.

Tip #1: Sign up for a demo account. This will help you learn how to trade online before you risk your money. After you are comfortable trading with a demo account, you can sign up to begin using the service.

Tip #2: Online share trading is usually cheaper than hiring a broker. Online technology is rapidly improving, and thus online trading is becoming more prominent across the internet. As a result, the service is becoming more competitively priced and there is reduced paperwork and no formalities of hiring a broker.

Tip #3: Online share trading is easy. Share trading online is much easier than you may think. With a few clicks all the information you need is presented to you. The website is easy to navigate and has clearly defined sections that make it easy for the user to find what they are looking for.

Tip #4: Look for discounts offered by brokerage firms. Brokerage firms will offer special promotions and discounts at various times to attract new customers.