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going at a big discount. While you will still need to find the courage to commit this cash, or at least a portion of it, when the market takes its dips and dives, at least it will be sitting there, ready for you to invest. |
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6. Commit to watching your investments closely. This one is to neutralize the common fear we feel when we don't have adequate information. If you are going to invest online, make it your responsibility to check your portfolio regularly. We are no longer living in a time when we can simply buy individual stocks or mutual funds and not pay attention to their performance. If you are going to be your own broker, then you have to act like one and commit to following your stocks as a part of good investment management. There are many good portfolio trackers at various stock sites that make this easy to do. |
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Even if you plan to hold your stocks long term, stay on top of the news related to your individual positions. Read online and off-line articles to stay informed. Never has it been easier to access all the information you could possibly want. Not only will you lose some of the fear associated with the mystery of how the financial markets work, you will also feel more confident to make adjustments in your holdings to keep up with changing conditions. |
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7. Be aware and take advantage of the competition between discount brokerages. This one is to appease the greedy part's need to get everything possible from a discount brokerage if they are going to hold your money. Don't get married to any one brokerage. Stay flexible and ready to move from one brokerage to another. |
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Consider opening accounts with more than one brokerage, even if you don't want to fund more than one of them. Having an account can qualify you for a number of online privileges that may supplement any other accounts with other brokerage firms you are using. |
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This is not like the old days where people found one broker, formed a personal relationship, and stayed with him or her forever. With online trading, you don't need the personal relationship but you do need service when you want to reach them. |
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As mentioned earlier, the best site I have found for analyzing and rating the whole gamut of discount brokerages, whether you are an active trader or long-term investor, is at www.sonic.net/donaldj. It is updated regularly as new information comes in from customers regarding problems at the various brokerages. |
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Things are changing very rapidly. In August of 1999, there were two discount brokerages offering after-hours trading. Two months later there were at least a half dozen. Now, as you read this, it is the norm for any competitive online brokerage to be connected |
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