Getting_Started_With_Online_Investing by georgetitan

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									Title:
Getting Started With Online Investing


Word Count:
623


Summary:
As with everything else these days, the stock market has gone online. If you can shop, pay bills, and do your
banking online, why not invest too? Investing online is not as big of an ordeal as some people make it out to
be. The key is to know what you want before you start.


When opening a new account, investors need to answer the regular questions, such as the type of account
they want and how it will be funded. When selecting an account type the kind you choose will depen...



Keywords:
investing, stocks, trading, banking, invest, online, futures, mutual funds



Article Body:
As with everything else these days, the stock market has gone online. If you can shop, pay bills, and do your
banking online, why not invest too? Investing online is not as big of an ordeal as some people make it out to
be. The key is to know what you want before you start.


When opening a new account, investors need to answer the regular questions, such as the type of account
they want and how it will be funded. When selecting an account type the kind you choose will depend on
whether or not the account is taxable or tax-deferred, and also whether it is for just you or you and someone
else.


You will also have to decide whether your account will be “cash” or “margin.” A cash account means you
are only able to place trades for investments with money in your account. A margin account gives you a
credit line from your brokerage firm. You can also have a “margin account with options,” which means you
are purchasing the right to buy and/or sell a stock at a specific price. Options are quite complicated and
usually only purchased by traders with experience and large portfolios.


After choosing the type of account money must be deposited. The initial deposit can be sent to the firm by
check or an automatic transfer from a bank account. Another option is transferring an account from a
different brokerage firm, but the process is quite lengthy and can take months to complete.


If you are trying online investing for the first time, start small. Don’t put every penny of your life savings
into an online account. A smaller sum is easier to handle and easier to keep track of. When you feel
confident and are ready, then you can expand your online account.


Another good thing to do when investing online is to try and stay diversified, in other words don’t
concentrate all of your portfolio on just one thing, instead develop a well-balanced portfolio of stocks,
bonds, and cash.


Many brokers will encourage you not to bail out on mutual funds. The main reason most investors are in
mutual funds are because they don’t have the experience to make their own calls on stocks. They are also
occupied with other things beside just watching the stock market. Keeping your mutual funds can be a wise
decision instead of prematurely “playing the market” in individual stocks.


It is important to remember that online brokerage firms add fees and charges that need to be looked at
closely. Before buying and selling large scale stocks online, look at what the tax results are of such trading.
The average online brokerage costs are lower than full-service brokers, but fees can still add up.


Remember that just because you are investing online, the Internet is not foolproof and you are bound to run
into some problems. There will surely be times when you are unable to gain access to your account. You’re
connection could be down, the brokerage firm’s server could crash if trading is overly heavy, you could
experience a software glitch, or you may be away from your computer when there is a major market move.
Always be prepared for these things and keep in mind the available alternative trading options such as phone
trading.


When investing online it is your responsibility to say as informed as possible. Don’t just settle for what you
hear. Instead do a little research on a company before investing in them. There are services that send you
automatic e-mail messages over news about your stock; take advantage of these. Remember in online
investing everything is up to you and knowledge is power.




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