Investing options. (Ask B.E.).Q In two years, I will be 25 and graduating college with a B.S. in Nursing. What are the advantages 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. or investing vs. going to a big or small investment company when you're a novice investor? --S. Clement via e-mail A It would probably do you good to review the four-part investing series that appeared in BLACK ENTERPRISE from November 2001 to February 2002 (see Investing 101, 201, 301, and 401). We addressed your question and many others that beginners have about investing. The advantages of online trading and investing are that it generally saves you money on brokerage fees, you can get started with small sums of money, you have the freedom to make trades when you want to, and it's a great way to help you understand the financial markets. The disadvantages are that you have full responsibility for your trades, especially the ones you don't make because you may not have enough time to watch the market closely. You have to do hours of research so that you know when and what to buy and sell. And if you don't know Don't know (DK, DKed) "Don't know the trade." A Street expression used whenever one party lacks knowledge of a trade or receives conflicting instructions from the other party. what you are doing, you could suffer a tremendous loss. There is less guidance when investing online Investing online has become the norm for investors and traders over the past decade with many, if not all brokers now offering online services with unique trading platforms. In the past, investors had to call up their brokers and place an order on the phone. , and if you aren't comfortable navigating your way through Websites, you may become frustrated frus·trate tr.v. frus·trat·ed, frus·trat·ing, frus·trates 1. a. To prevent from accomplishing a purpose or fulfilling a desire; thwart: . The advantage to using an investment firm is the higher return you should get from having a professional manage your money. If you have a great deal of money, that expertise could make a major difference. The downside Downside The dollar amount by which the market or a stock has the potential to fall. Notes: You might hear someone say that the downside on stock XYZ is $10. What that means is that the stock could fall by this amount if things got bad. is that you have to pay commissions and higher per-trade costs to get that expertise, and if you don't have more than $25,000 to invest, your advisor may not take the time to answer all your investing questions. --M.S.S. Mail your money management questions to Ask B.E., BLACK ENTERPRISES, 130 Fifth Ave., New York New York, state, United States New York, Middle Atlantic state of the United States. It is bordered by Vermont, Massachusetts, Connecticut, and the Atlantic Ocean (E), New Jersey and Pennsylvania (S), Lakes Erie and Ontario and the Canadian province of , NY 10011, or send an e-mail to scottm@blackenterprise.com. |
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