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Disadvantages of Internet Trading

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From Quick Guide: Introduction to Trading Stocks

Summary: Internet trading is similar to anything in stock trading because it involves risk and it doesn't involve the use of a financial adviser. Find out how to watch the markets on a daily basis and how to learn the topic of paper trading with help from a registered financial consultant in this free video on Internet trading.

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By Patrick Munro
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Patrick Munro's affinity for investing and financial matters began more than 20 years ago with business education and service throughout the ranks of the banking, insurance and...read more

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Video Transcript

"This is financial advisor, Patrick Munro, talking about the disadvantages of Internet trading. Internet trading is like anything in stock trading. It involves risk, and because you're not working with a financial advisor, and you're basically using your own wits and your own resources, it can result in your losing principal. Losing your money. And it is irrevocably irretrievable. You have to come up with new money, very much like gambling, if you lose the money that you have put up and made a bad bet. Internet trading is all about knowledge and platforms and various types of reporting that will allow you to make a successful trade. So it's important when you first start out to learn the topic of paper trading. That is to say where you're working virtually. You're watching the markets on a daily basis, but you're trading a virtual account. And this is not your own money, but rather money that you're just putting up, much like a simulator when you're learning how to fly. When you're ready for flying in the stock market, then you can put up your own money, but make sure you avoid disadvantages of Internet trading. This is Patrick Munro, financial advisor."

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