I really can’t think of one thing that you aren’t able to buy over the Internet. Every geographical barrier that once stood in the way of purchasing what you want, when you want it (including at 3 a.m., if the need arose) has been blown to bits by the World Wide Web.
When you think about it, just because this side of the planet is sleeping, there are other markets across the globe open for business as usual…so why should we let a little thing like sleep deter us from making a few trades in the stock market? The Internet Revolution has changed the world, and brought Wall Street and the rest of the world right into your home.
But what is this online trading frenzy? Is it a few housewives dabbling a bit with the family nest egg? Or maybe a few of the ladies are meeting for lunch, complete with their laptops and making a few dollars before returning back to the office? Maybe people are really beginning to see so much negative press over these big companies that they just don’t know who to believe anymore. So they sit down a few nights a week, watch Bloomberg TV and spend their weekends reading about the latest penny stocks that will cover the kids’ college educations.
First, the Pros-
- It’s fast, and you can’t say otherwise. Faster than picking up a telephone; Speedier than pushing the #6 on your speed-dial, you can click your way into an online trade.
The Cons-
- About 80% of new investors lose money almost immediately. This number reflects the simple fact that the necessary research hasn’t been conducted. It doesn’t say that folks are “jumping in” face first without a clue, but to be one of the 20%, you really need to do your homework.
The Internet has taken the middleman out of a lot of different businesses, including the stock market. Unfortunately, that middleman did have to know quite a bit of information to do his job successfully, and now you’ve just taken I all on. You’re probably feeling a bit overwhelmed, to say the least.
Online brokerages charge an average fee of $10 per trade. Some of these services offer a cheaper rate, but as with anything else you buy, you get what you pay for. If you just plan on trading a few shares every 6-months or so, there’s not much to consider. But if you have any interest in other services that the brokerage.com provides, a dollar or two here and there could add up to some big savings for your bank account.
