|
|
|
|
|
|
|
Margin is secured by stock and cash positions, and the stock may be sold by the brokerage if you get too far in debt and are unable to come up with added cash to secure your positions. If this type uses margin at all, it is only for short periods of time. They are most comfortable using margin to give themselves a short-term loan. |
|
|
|
|
|
|
|
|
This trading type will value a discount broker who offers service as much as speed of execution or the lowest cost, since they are not likely to be attracted to active trading. They will also like a discount broker who offers research reports and tools to analyze their portfolio, as this kind of stuff is enjoyable to them. For a respected web site that offers objective, in-depth comparison reports between discount brokers for the whole spectrum of online investors, visit www.sonic.net/donaldj. |
|
|
|
|
|
|
|
|
When it comes to individual stock selection, they often feel most comfortable picking well-known, large-cap companies that are solid performers. They like to think of themselves investing in companies, not just stocks. In fact, they are among those who may become married to a stock, never wanting to give it up. |
|
|
|
|
|
|
|
|
Some of those with this investment style become what are called chartists. These people like to analyze the technical aspects of stocks. When the market is closed, they plot the daily price movement of stocks and pore over the charts to determine entry and exit points, based on the stock's history. Of course, what used to be done painstakingly by hand may now be found at numerous online discount brokerage and stock analysis web sites. |
|
|
|
|
|
|
|
|
Much like looking at constellations of stars in the sky, chartists find all kinds of patterns in the charts that are deemed to be meaningful. The whole market of custom charting software has them in mind. Online, when the market is open, technicians like to monitor intraday price movement graphs, volume, ratio of new highs to new lows, and various other technical data. |
|
|
|
|
|
|
|
|
The obsessive-disciplined investor who spends a lot of time online loves to stay up to the minute on all breaking news and how it may affect his or her stocks. Some like to know the quarterly earnings results of a stock just as they are released and then stick around to listen in on the company's conference call. |
|
|
|
|
|
|
|
|
Obsessive-disciplined investors also enjoy participating in some of the many online stock message boards, closely following the conversation "thread" related to one of their favorite stocks. In fact, they often become part of the core of regulars who are valued contributors to these boards. |
|
|
|
|
|