The Internet has opened up a world of opportunity for most of us "regular joes." And one of those opportunities is stock investing with the help of online discount brokers. These are Web sites like E-Trade and Ameritrade that offer anyone the ability to invest their money and make money in the stock market. You can get started in stock investing with the help of an online discount broker that offers lower fees and rarely charges commissions.
Paying less to brokerages
Prior to the Internet investment boom, only rich folks could afford to invest. Individual brokers charge high commissions and offer targeted, specific advice. Additionally, it was requisite to invest a large sum of money. Now, however, online discount brokers offer you the option to execute orders of smaller amounts, and usually only charge a flat fee, no matter the size of the trade. This means that you can save money, and get in on stock investing with a much smaller starting investment account. Thanks to online investing, it is possible for you to make investment decisions and parlay a few hundred dollars into something more substantial.
Researching investment decisions
One thing an online discount brokerage will not offer you is specific advice. You will have to research your own investment decisions and options, and you will have to decide on your own whether or not you want to execute a trade. You won´t have to pay as much, but you won´t have the individualized advice that the big commissions can buy. On the other hand, though, most online discount brokers offer very good research tools and easy to use interfaces that make it easy to execute orders and manage your investment account.
Online investment tools
In addition to the online discount brokerages, there are plenty of other investing tools available online. Web sites like TimeFrameInvestor and Investopedia offer helpful tips for online investing as well as analysis and charts. These Web sites can provide you with additional insight into investment opportunities, and they can help you make more informed (and hopefully better) investment decisions.
The biggest problem you are likely to have when using online investment tools to help you with your stock investing is information overload. You have to remember that stock investing is always a risk, and you will never have enough information to make a decision that is a "sure thing." So, make sure that you stick to the basics of finding out about a stock and avoid insisting that you have all of the information available before making an online investment.