BASIC TIPS FOR INVESTING IN THE NEW ECONOMY

INVESTMENT ADVICE ONLINE.
Do your own homework before investing rather than taking advice from someone in an online chat room. If the only investment advice you’re getting is from some guy in his pajamas at two o’clock in the morning, you need to worry.

MARGIN ACCOUNTS.
Analyze whether borrowing funds from a broker to buy stocks makes sense as part of your financial plan. If the stocks go up, your return will be larger. But you can also lose more money than you have invested. Further, your stocks may be sold without notice to pay off the loan.

STOCK PRICE INFORMATION.
When you send a “market order” online for execution, the price that you saw when you clicked the “submit” button may have changed sharply in the few seconds it takes to execute your order electronically.

LIMIT ORDERS.
Limit orders can help you avoid expensive slips. After you have done the research and selected stocks to buy, if you send in a market order, the prices for the stocks you want may have skyrocketed in the short time between when you ordered the stock online and when that order was fulfilled.To protect yourself against buying stocks at prices far higher than what you wanted to pay, use limit orders that specify the highest price you are willing to pay.