Know Your Broker Before Trading Online

Proper investment strategies should always include researching your broker, but in today’s world of new technologies and online investment, what questions should you be asking?
Know Your Broker Before Trading Online
Proper investment strategies should always include researching your broker, but in today’s world of new technologies and online investment, what questions should you be asking?

The following are some key questions to ask your broker, which can save you both time and money:

* What tools are available from your broker? Stock quotes, news, charting, level II data and advanced order types are among many key tools for traders. Be sure your broker has the tools you specifically need.

* How fast are orders being executed? Keep in mind that online trading can significantly speed up the order process in comparison to placing orders over the phone.

For example, RushTrade offers Direct Access Trading, which allows you to direct your order to the execution venue of your choice. This can result in faster executions, improved price and greater control of your orders.

* Does your broker get paid for order flow? Some brokers may receive payments for sending orders to preferred market makers. This can lead to a conflict of interest. Make sure you know your broker’s policy.

* Do they offer a trading demo? Find out whether there is a cost involved for a trading demo. RushTrade, for instance, offers a demo of its Direct Access software free on its Web site.

* Is the Web site or trading software easy to use? Dealing with a slow or unwieldy site can really hamper your trade executions when speed is the name of the game.

* Can I trade after hours? Ask yourself whether this is important for your investing needs. RushTrade’s Direct Access software will allow after-hours trading.

* Are there any hidden fees? Brokers might tout low commissions but then hit you with unexpected fees. Look for brokers that do not charge low balance, inactivity or maintenance fees.

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Before you start stock trading: first think if it is worth your time and money.

Today people are bombarded with lucrative offers from various trading companies offering $10, $7 or even $4 per stock trade. It looks very tempting to sign up and start trading since the terms are much better than it was before the Internet trading was possible.
That was the good news. The bad news is that those companies are selling you the tools and service only. They do not sell you any guarantees of success. It does not matter if you profit or lose money, the trading company will get its fee for each trade anyway.

Since you are considering going into the stock market, most likely you are planning to get a significant return on your investment which should also be better than what you would get buy investing your money into mutual funds (less risky than single stocks) or even no-risk certificate of deposits (CDs) where returns are guaranteed.

Well, how can you get such returns? The answer of course is simple and well known: buy low, sell high. If you do it most of the time you’ll be a successful stock trader. Now the first problem comes: how do you know when to buy? There are probably several ways to do that, we do not discuss this here, let assume that you know somehow or think you do know. Lets say you got lucky and the stock after you bought it is going up, just as you planned.

Now another problem comes: when to sell? After the stock is up 20%, what do you do? Sell now, or wait until it is up 50%, 100% or 200%? Do you listen to investor news and do what everybody else does: selling, buying more, or continue holding the stock? If you choose one of the first two options, how much of the stock you should buy or sell? Or if you hold the stock, are you sure it will continue to go up, or you may end up waiting until the stock price is back to the original and than lose it value resulting in your losses.

The truth is some people actually do know the answers to those questions most of the time and actually make profit. The question is, are you as good as those people? Most people are losing money guessing and trying to time the market. If youe new in this game and not planning to spend much time on research, chances are you will lose. You will be competing with professional traders, big players and insiders who profit mostly because many others keep losing. Plus what are the chances that you can predict the market? The chances are very slim.

Some may argue: “I had that stock, I sold it when it was up 20%, but if I did not sell it at that time, now it would be up 300%. How stupid I was when I sold it, if I did not I’d made a lot of money. I have to do this again. It really proves that I can make a lot of money there and it easy!?That is right you can make a lot of money, but it is not that easy as it looks. Lets assume you did not sell the stock at the time it was up 20%. Then what makes you think you would wait until it is up 300%? You may have sold it when it was up only 25%. Or it may go down several times below 20% increase, you could have thought it was going down forever and sold it even with a lower than 20% profit.

The bottom line is that it is easy to look at the past and see all the mistakes you’ve made. However it is very difficult to do right things for the future. Unless you know market trends well, understand related industries and stock company financials, most likely you will not be able to make profitable trades. Even professional traders do mistakes and lose money. If you are not one of them or not planning to become one, your best bet would be investing into CDs, mutual funds or your own business.

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Why Cash Bucket Pawn is Superior to Online Shopping – Save Time and Money

These days, it seems like you can get almost everything via computer. You can order food from the grocery store, choose clothing for your kids, pick out a new computer and fill up your empty bookshelves, all without leaving the comfort of your own home. Some people even spend days stalking auction sites, bidding on items and hoping to win something at a low price. The experts at Cash Bucket Pawn think it’s time for some of these shoppers to shut their computers down and come in to the pawnshop. They say that there’s something truly wonderful about shopping at a pawnshop that simply cannot be replicated by online shopping.

When you’re shopping with an online merchant, you often don’t have a helper looking for items you’ll like. The opposite is true when you shop at Cash Bucket Pawn. The store is clean and bright, staffed with cheerful and friendly people who know the inventory inside and out and who are eager to help shoppers find just the right item. If you tell the staff you’re looking for solid-gold charms for your bracelet, for example, the staff could narrow your search by asking what sort of charms you like and what sort of charms you’re looking for. The staff could ask how big you like the charms to be, and whether or not you’d accept charms with gemstones or other accents. The staff could then find a selection of charms just like the ones you’ve described, and tell you the benefits and drawbacks of each item. This sort of personalized attention is nearly impossible to get in the online world.

Cash Bucket Pawn also sells items at incredibly low prices. Some online merchants charge you full retail prices, and then you must pay shipping and handling charges. At Cash Bucket Pawn, you’re often buying gently used items, so they’re not priced anywhere near full retail value. And since you’re taking the item home yourself, there’s no need to pay shipping and handling. You can also take the item home right away, instead of waiting for it to arrive via mail or some other delivery service. It’s almost instant gratification.

So put down your mouse, close down your computer and drive over to Cash Bucket Pawn at 2334 N. Scottsdale Road in Scottsdale, Arizona. The store is open from 9am to 6pm, Monday through Saturday. You’ll be glad you did.

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