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Online Trading FAQ:
Q.What should I look for in choosing an Online Broker?
A.There are many variables in choosing an Online Broker, so there's really no simple answer. Many prefer the ease and reliability of the biggest names like Ameritrade or E*Trade. Others look for special services such as access to research, while others want the easiest to use or lowest price access to Real Time Quotes. Still others look for the lowest commission prices.
Q.Is Online Trading the best choice for me or should I just have my regular broker work for me?
A.If you're only buying one or two stocks and planning on holding them for a long period of time, the ease and flexibility of Online Trading may not really offer you any advantages other than a lower commission compared to what a conventional broker may charge. If however you are an investor who makes many trades, Online Trading is an ideal way to take advantage of the markets.
Q. How much money do I need to enter the Online Trading world?
A. The various Online Brokers have minimum requirements, with some starting with minimum requirements of as little as $1000.
Q. What is Margin Trading?
A. Margin Trading allows investors to buy stocks with funds they don't have or sell stocks they don't own, in hopes of capitalizing on profits when they later buy or sell. The collateral is the stocks or equivalents that the investor does own, with the investor basically borrowing from their broker.
Q.What do I need to do Online Trading?
A.Other than money to invest, of course, you'll need access to a computer or another device that can provide access to the Internet such as a web-enabled cell phone. Don't be fooled though by the ease of online trading - the most important thing you need is a sound investment strategy.
Q. Isn't Online Trading just a form of gambling?
A. For some people, Online Trading does take on a "horse race" mentality that can have many of the pitfalls of conventional gambling. However, for the vast majority of online investors, Online Trading can be an intelligent way of investing for their future. Yes, Online Trading can actually be a lot of fun, but only a fool forgets that it is much more than just a game.
Stock Market History
In many ways, the study of Stock Market History over the past 100 years is a study of America itself. From the seminal Stock Market Crashes and the key Stock Market Record Days, historians can trace the link between the Stock Market and the Economy and perhaps even offer guidance as to what may lay ahead for the markets.
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