| There are basics that beginner investors need to | | | | equipment to place and follow your trades. You |
| understand when investing in the stock market. | | | | basically rely on the expertise in offline brokerage to |
| Investing is more than understanding stocks and | | | | guide you specifically in your investing decisions. You |
| numbers. Knowing the how, what, why and when of | | | | pay handsomely for this expert guidance, and the |
| investing is equally important for the beginner | | | | likelihood of making better trades improves over the |
| investor to figure out. | | | | other options. The online brokerages give you great |
| How To Invest: | | | | online tools to educate yourself on the world of |
| The beginner investor will need to know how to | | | | investing as well as graphs, company profiles, and |
| begin the investing process. Their investing options | | | | trade histories; all without the high price of |
| for how would be: self-investing by using a "hot" tip | | | | commissions, but lack the individual attention of the |
| or by reading financial newspapers and then finding | | | | offline brokerage. |
| someone to place the trade for you, the offline | | | | The risk of investing follows the basic principal of: |
| investing brokerage or the online investing brokerage. | | | | You will stand to gain the highest profits by taking |
| Examples of offline investing brokerages are: AG | | | | the highest risks and lowering your risks will lower |
| Edwards, Charles Schwab, and Mesirow Financial. | | | | your potential profits. |
| Examples of online investing brokerages are: ETrade, | | | | Why People Invest: |
| Sharebuilder or TradeKing. Most investing services | | | | Everyone has different reasons for starting an |
| have some kind of investing class or tutorial to help | | | | investment portfolio (collection of stocks, bonds, |
| educate the investing beginner about the basics of | | | | mutual funds etc that you are investing in). Some |
| investing. | | | | common reasons are: To grow a college fund, to |
| What It Will Cost To Invest: | | | | grow a first home fund, for future travel plans, or |
| The brokerage options involve setting up an account. | | | | for retirement; just to name a few reasons. |
| The offline will give you more individualized attention | | | | Depending on your reason, you will be guided to |
| and professional advice for a commission you pay to | | | | either short-term or long-term growth investment |
| the brokerage. The online usually does not involve | | | | packages or individual stock, bonds or funds. |
| commissions, instead they will charge you a flat fee | | | | When To Invest: |
| based on a time allotment or on the number of | | | | It is never too late to start building your investment |
| trades. The self-investing involves the most risk, | | | | portfolio; the important thing is to get started. Most |
| depending on how you place your investing trades; | | | | professionals will also tell you that the "when" is also |
| usually a broker that may or may not be associated | | | | determined by when you are ready to invest based |
| with a brokerage. | | | | on having the cost to invest, when you have set up |
| What Investing Risks To Take: | | | | the "who will help you invest" and how you will invest |
| Your first risk assessment is in how you make your | | | | lined up. |
| trades. Self-investment involves the most risk | | | | When to invest also depends on your strategy and |
| because you are basically relying on yourself for | | | | how steady you are at waiting until the right time to |
| knowing what the smart trades will be. Offline | | | | make trades (buy or sell) to maximize your profits. |
| brokerages involve the lower risk factor because you | | | | Professionals can guide you but ultimately the timing |
| are paying for their knowledge, advice and the | | | | of "when" is up to you, the investor. |