Sunday, October 7, 2007

Finance On The Net

The internet has long been home to ‘get rich quick schemes’, but it now seems that the serious face of investing is getting wise to the potential of the web. So forget about the ‘I made a million in a week and you can too’ emails that turn up in your inbox.

Turn your attention to the world of stocks and shares. Not only is there a wealth of information about the whys and wherefores of trading in stocks and shares on the internet, but it is also possible to start trading online.It isn’t just the big spenders who are catered for either.

Even if you are a complete beginner, or just have a small portfolio, there is plenty of online information and help out there. Before you start worrying about what’s available online, it is worth taking a closer look at yourself and your preconceptions about investing in the stock market.Day TraderFor most people, the image of the 80’s city investor springs to mind: sharp suits, fast cars, and million dollar deals struck during the blink of an eye. The reality is far removed. While there is no escaping the fact that with the necessary combination of funds and nerves you can assume this role. The day trader who risks all on the hourly fluctuations of the market is not the norm.

The reasons for this are simple. The vast majority of day traders don’t get rich quick. In fact, the majority don’t make a profit at all.If you want to invest your money in this way, then the services offered by the internet are ideally suited to it, with real time quotes and execution available. However, there are also services geared to more sober traders, such as long term investors and savers looking for an alternative to leaving their hard earned money in a bank account accruing a safe, yet modest interest.

While the elements of risk are not removed by playing the long game, investing in shares over a longer period tends to be a safer option than diving into the frenetic world of the day trader. But it’s not all about high rolling stocks and shares.Financial PlanningThe first thing to do is work out what you want to achieve by investing on the stock market. This may sound like a stupid statement, because you want to make money, right? Obviously, that is the driving force, but ‘how much, how soon and how safely?’ are the questions you need to ask yourself.

At this stage you don’t need to be familiar with all the possibilities, because all you are doing is setting some guidelines covering how much you have to invest, how much of a risk you can take with the money and when you would like to see a return. Where to BeginBefore you jump into the daunting world of buying and selling shares, build up a useful set of resources. The financial world speaks a language of its own.

Make sure you understand the glossary of terms.It is vital that you understand both the markets and the companies you are investing in. You really can’t have too much information on these matters. Fortunately, providing information is where the internet excels. Visit the websites of your local stock exchanges.

While there is a dearth of financial services websites around, finding the right one for you and your needs is not always that easy, and you get bogged down by the dazzling array of services offered by impressive websites all vying for your patronage. Direct share dealing in the past was quite limited. But with the advent of the internet, this has all changed.

Alternatively, you could avoid the actual markets altogether and pop down to your local computer games store and grab a copy of the latest wall street trader game that provides another risk free way to get the feel of trading.

No comments:


blogging resource open tips of web and link

blogger templates | Make Money Online