Online Investing

Online Investing is another tool that one can use to build wealth. It is fairly inexpensive to get started and requires very little money. One can easily sign up with any of the online brokerage companies out on the net.

One must be very careful not to get into the habit of day trading. That is one mistake that most novice investors will make. A commission is applied to every single trade you make whether you buy or sell. Commissions range between $7-$10 dollars per trade and sometimes more. This adds up to some big money so it's not worth trading a few times a week. And, don't forget that you have to pay taxes on what you earn. Short term gains are taxed at regular income (28%) depending on your tax bracket. If you trade you should expect to hold the stock for at least one year. Then when you decide to sell, it's taxed at the 15% rate. So, please keep your trades to a minimum.

Invest for the long term with good solid companies, such as any of the Dow components, McDonalds, Microsoft, Coca Cola (The Dow Jones Industrials consists of 30 of the biggest companies in the world).

Online Investing is fun and easy. Do not be intimidated by investing online. You can easily pick up a dummy book at your local book store, but I don’t think it’s necessary. Remember that you’re simply deciding on buying a stock just as you would anything else in a store. Do your research and buy companies that you like or are familiar with. The bottom line is to buy a stock when the market decides to sell off or it's in a Bear Market. These are the best times to buy. Read a bit and you’ll start to learn when and how to buy, but make no mistake no one can time the market. However, I recommend buying when you thing are bad and then you see the turn around start to happen. People start to buy and the everyone wants to catch the wave.

So many people get hurt since they are afraid to miss the next big move in the market so they buy when the stocks are hitting new highs. Then there is a massive sell off and those who jumped in late get slaughtered. Also good companies will always bounce back as long as you pick those true winners or industry leaders.

I’ll be adding a lot more to this page so come back and visit us soon. Get started today since opening an account is not hard at all, but you must be 18 years old to open an account.

All the best and keep on learning and keep saving.

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