BROKERAGE ACCOUNT » Online Trading

The life of a stock trader is a glamorous one. Well, maybe not exactly. The Wall Street hotshots we see in movies are for the most part fiction, but the allure of making money off investments while never having to leave the couch, or scoring a semi-fortune on that one hot stock, nevertheless captures imaginations. Most people love money and love things that are fast and easy. So the idea of making fast and easy money in the stock market is probably right up your alley.

However, there’s a popular statistic that stock traders like to throw around. Over 90 percent of stock traders lose all their money in the first year. Over 90 percent. If you’re ready for that kind of pain, then let’s get started!

A new survey conducted by Russell Investments shows professional managers believe now is a great time to invest in stocks. Many surveyed by the Washington State-based financial services firm came to this conclusion with the realization that the stock market is far more undervalued than overvalued.

Stocks Worth More Than Current Prices

One of the most common comparisons in finances is that of the stock market to a giant casino. Especially after the last stock market debacle, comparisons to stock investing and gambling began cropping up again. And, while there are some similarities between these two activities, perhaps saying that investing is just like gambling is going a bit too far. There are enough differences between the two to make investing a better choice for most people.

Similarities Between the Stock Market and the Casino

A negative risk premium is when a non-risky or “safe” investment pays a higher premium than a riskier investment. Over the long-term, risk premium yields are almost always positive, but in some cases, fluctuations in the market can cause a shift to the negative side.

Risk premiums need to remain in the positive because it rewards investors for taking on risks. If the negative risk premium lasts for too long, it could mean market factors are out of whack.

This is bad for investors because the entire point of a risk premium is to achieve a higher rate of return on investments by accepting more risk. If returns for risk-free investments pay higher premiums than a risky investment, there is no incentive for an investor to own risky investments at all.

When most people hear the term “double dip,” their mouths start watering. Thoughts of some sort of confectionery ice cream/pastry concoction topped with generous helpings of chocolate and strawberry syrup finalized by heaps of glowing red cherries probably fill your mind. Unfortunately, we’re referring to the kind of double-dipping that involves everyone you know fearing for their life’s savings and their jobs.

Yes, it’s the dreaded “Double Dip Recession.” While doom and gloom experts like to point to the growing probability of the U.S. dipping back into a second recession, other experts are contradicting them by saying the economy has shown enough growth to avoid those pitfalls. According to the National Bureau of Economic Research, the deepest and longest recession the U.S. endured since the Great Depression officially ended in June 2009, spanning 18 months since its start in December 2007. So one recession is over, are we ready for another one?

Online trading is almost commonplace these days. Everyone from “investment clubs” in senior citizen centers, to financially savvy college whiz kids, to the average Jane or John living in middle America can easily become their own online money manager. All it takes to partake in online trading is some spare cash, the desire to invest, and creating an online brokerage trading account. Although the process of online trading is simple and just about anyone can do it, there are both advantages and disadvantages you have to consider if you are deciding on signing up.

Lets find out what the advantages and disadvantages are for online trading…

One positive that has come out of this current recession is the growing interest that people have in the stock market. For better or worse, the fluctuations of the market and abnormal volatility over the last few years have attracted a lot of attention from people either looking to get in on the action or just trying to protect their investments. However, not everyone knows how to do either of these things properly.

Stock market investing, if done shrewdly, is a very rewarding experience. Not only can you make money from it, it also serves as a good social conversation starter. Knowledge and perspective about investing displays a level of sophistication beyond basic financial management. People will always be interested in knowing better things to do with their money.

According to a new poll conducted by the Associated Press and CNBC, investing in the stock market is disconcerting for many American investors, especially those with smaller portfolios. The survey revealed nearly 90 percent of investors with portfolios less than $50,000 prefer savings accounts because they feel the market shows favoritism towards investors with more money.

The Market Shows Favoritism

It has always been a dream of mine to become a landlord. I know that that sounds a little funny to some people, but real estate can be a good supplemental investment to a well diversified portfolio.

Not only will real estate provide you with an additional income stream from the rent you collect, but it can also eventually appreciate in value if you hold it long enough. However, real estate investing is not for everyone. It is a venture that should be carefully considered. Here are some of the things that a prospective investor should contemplate before taking the plunge:

Almost twenty years ago, Morningstar created a way for investors to quickly understand what type of mutual fund or stock they were considering buying. Most investors understand the importance of diversification across asset classes and the Morningstar Style Box allows you to easily classify stocks and spread your risk around different asset classes and investing styles.

Morningstar is the leading research company that provides independent research and analysis on over 350,000 stocks, mutual funds, commodities, futures, options and other investments to both individual and institutional investors.