Investing Online

 Understand basic options for online investing. Knowing a bit about the cluttered landscape of trading options that are available through online brokers can help the beginning investor to figure out his primary focus and goals.

• Look at single stocks against commodities, mutual funds, index funds, exchange traded funds and all of the other items that can be traded online. It's good to start out with a focus on single stocks, but knowing about some of these other products will make an investor more flexible in how he uses the smaller amount of capital over the long term. Understanding more online trading options can often help the account holder do more with less money.
  
•   The Advisor provides advice as to allocation and specific investments, but you implement the recommended changes to the allocation and specific investments. It is up to you to return for future advice. The Advisor does not monitor or proactively call you when a change occurs. The advice does not include the payment of commissions. 
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  There are many facets to managing your investments; opening accounts, transferring accounts or assets, buying and selling investments in each account, monitoring individual investments and your overall allocation on a periodic basis, re-balancing the asset allocation, removing poorly performing investment options and replacing with more appropriate alternatives, all in a tax-efficient manner.
• The Manager invests the money according to a pre-determined plan, monitors the portfolio and investments and makes changes as needed. You are an observer to the process and the results.
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  Many brokerages and platforms offer test accounts where you can trade with play money, the equivalent of Fantasy Football, until you become experienced with the ebb and flow of the markets and the behavior of individual ticker symbols. Or $1,000 could be used for courses at Online Trading Academy, giving you the start of a comprehensive trading and investing education.
• Options allow you to control a stock or other asset and capitalize on its price movement without actually owning it. Because options expire in a few months (or even weeks) they’re priced low, far below the per–share price of the underlying asset.
  
  Unlike futures, the most you can lose is your stake; there’s no threat of an additional margin call. But like futures, options are a complex (though exciting) asset class and you need training and experience to trade successfully.