How to Choose Between Online Stock Trading and Retail Sector Stock Trading
Have you ever wondered whether you really need an investment adviser? Have you seen the ads for companies like etrade.com and TD Ameritrade and wondered, "could I do this myself"? Here we will explain in detail how to decide on the approach that is best for you.
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Instructions
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Define your goals. We will use retirement or college savings as an example. How much money will you need saved up? How much risk are you comfortable taking to reach that goal? How much time do we have until we need to access the funds? Write these down and move to the next step.
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Determine your current knowledge. Do you know a lot about finance and investing? Do you understand the difference between a stock and a bond? Are you comfortable with terms like "P/E ratio," "Beta" and "Dividend"? If you are, then proceed to Step 3; if not, then proceed to Step 4.
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Determine your comfort level. Even if you are knowledgeable about investments, do you really want to spend the time and energy doing your own research and trading? If so, head to an online brokerage website and get started (see Resources below); if not, proceed to Step 4.
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Find an adviser. When looking for a retail investment adviser, first ask the adviser what it is that they actually do. Do they sell investments and insurance? Do they offer financial planning services? If you like what you hear, ask about the costs involved in working with this individual and review his credentials.
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Tips & Warnings
This article is not intended to recommend the purchase or sale of any specific security or investment product. All investments carry a certain amount of risk, so please consider all factors involved in your decision and decide carefully.
