Online trading

[CharlieT]

I am thinking about starting to do some investing online. Who do you use and why? What do I need to look out for?

[skarke]

There are lots of good services, and they all provide similar features.

However, here's a thought.  Most investment managers recommend a strategy that does not move investments around very frequently.  In fact, a semi-annual, or even annual review is generally acceptable.

If you are talking about day-trading, then you are basically talking about gambling.  The beta is huge, but cuts both ways.  As a rule, day-traders make a lot of money in a bull market, only to give it all back and then some in a bear.

I highly recommend educating yourself on the market.  A WSJ subscription will net bigger returns than a day trader account, in the long run.

Invest wisely for the long term, manage risk through diversity and time, and you'll make money.

[Heavy C]

Sage advice Skarke.  I utilize a buy and hold approach with my clients.  It takes a lot of the emotion out that tends to get people into trouble.  Remember the 3 D's: Dollar cost averaging, Diversification, and  Discipline.  It's time in the market not timing of the market.

Day trading requires constant management and a great amount of risk.  That said, if you're going to go this route; then E*Trade is a good service.

Good luck.

[Graybeard]

Not that I have any money to put anywhere but if I did I'd sure not be putting it in the stock market right now.

[CharlieT]

Thanks for the advice.

[Cabin4]

I have a brokerage account with Fidelity, Schwab and ETrade. I see little differance between the 3 when it come to actually placing an individual stock trade. I do beleive Fidelity has the best overall offering when considering mutual funds offered and excellant company level & fund research tools.

[Heavy C]

By the way, the buy and hold strategy is being utilized on mutual funds only; not individual stocks.

[Foxxtrot]

Use anyone but Fidelity. They are for the really rich folks that don't mind $20 trade. Scottrade is good.
Don't forget that everything has bounced back so the 6 month spreads are going to look great. Look at the last 18 months to see what the bottom looked like and possibly wait it out. China is still growing, but it is hard to prove by how much. They are cash rich, but they are seeing there own bubble form. If a sovereign falls in the next few weeks...get outta the market or short it.

Short the market
DXD
SDS

Stay away from stocks as much as you can. ETN and ETF in agriculture are good.
Agri stocks in fertilizer.

POT AGU MOS are some that I own. same with the shorts.


Wait for the second bottom.

TIPS mutual funds are good to beat off inflation.

[Cabin4]

Use anyone but Fidelity. They are for the really rich folks that don't mind $20 trade.

I've been with Fidelity for over 20 years and they have been great for me and my family. I have several accounts with them of which 2 are college investment strategies. One is the UTMA and the other is the UNIQUE Collage plans. With the advise I have gotten from Fidelity early on, it has now put my son through 3 years of collage so far and it will fund the next several years of all his reamining years. I have not and will not ever need to pull one penny from any other investment than from these two collage investment strategies to pay for all his costs. And at that, there will be enough left over to buy him a new car when he's all done.

I think your confusing Fidelity with the likes of a Raymond James, Merril Lynch, Morgan Stanley, AG Edwards, Mercer Global Advisors, etc.....

[The Hermit]

At 74, I still invest using a laptop from the cabin in the woods. I use Scottrade and TD Ameritrade.
Most of the funds are in long term holdings although I have been fortunate with some quick trading.
2009 gain was 23% average. Study and learn and develop a plan. Lots of good advice in here so far.
Most of the major brokerages are ok. Pick what suits your needs. Education is the key, as in all things.


         The Hermit