Internet investing is getting a bad name.It's hard not to get caught up in the hype surrounding online investing. After all, you can't turn on the television these days without seeing clever advertisements from Internet trading companies exhorting would-be investors to "get rich quick" by trading stocks online. The SEC, however, has drawn a line in the sand. In a recent speech, SEC Chairman Arthur Levitt warned investors about the allure of online trading Online Trading Making trades via the Internet. Notes: The use of online trading increased dramatically in the mid to late 1990's with the advent of high-speed computers and Internet connections. Stocks, bonds, options, futures, and currencies can all be traded online. . "For most individuals, the stock market is best used for investing, not trading," he said. "Online trading may be quick and easy, but online investing requires old-fashioned elbow grease, like researching a company or making the time to appreciate the level of risk." In short, online trading does not equal online investing. On the other hand, Robert K. Doyle, CPA/PFS, of Spoor spoor n. The track or trail of an animal, especially a wild animal. v. spoored, spoor·ing, spoors tr. & intr.v. To track (an animal) by following its spoor or to engage in such tracking. , Doyle and Associates, PA, in St. Petersburg, Florida St. Petersburg (often shortened to St. Pete) is a city in Pinellas County, Florida, United States. The city is known as a vacation destination for North American and European vacationers, as well as a politically important battleground in U.S. Presidential politics. , said he thinks online trading is great. It is bringing competition to the brokerage industry by giving people an alternative to high-commission trading. The increased competition means greater value for investors. "But online trading is not for everyone," Doyle said. Agreeing with Levitt's comments, he advises those who invest online to be diligent about their research and to be prepared to deal with the service shortcomings A shortcoming is a character flaw. Shortcomings may also be:
"For people who make their own decisions, don't need to pay for advice, don't trade frequently and want deep discounts in their commissions, I'd say online trading is a good idea," Doyle said. To help investors navigate the sometimes stormy seas of Internet stock Internet stock The equity security of a company engaged primarily in a business associated with the Internet. Also called dot-com. trading, the Securities Industry Association (SIA Sia (sī`ə) or Siaha (sī`əhə), in the Bible, family returned from the Exile. SIA - Serial Interface Adaptor ) has published OnLine Investing Tips. According to according to prep. 1. As stated or indicated by; on the authority of: according to historians. 2. In keeping with: according to instructions. 3. SIA President Marc E. Lackritz, the publication is a users' guide designed to help individual investors understand the advantages as well as the disadvantages of online investing. "Online investing is a growing phenomenon, and we want investors to know the basics for using it," Daniel Michaelis, an SIA spokesman, said. The publication, which echoes Levitt's advice to investors, gives online investors the following tips: * Consider the credibility of information obtained from online sources. * Anticipate delays and crashes with the Internet. * Avoid risky online trading techniques. On-Line Investing Tips is available at www.sia.com. |
|
||||||||||||||||
Printer friendly
Cite/link
Email
Feedback
Reader Opinion