About Online Stock Investments

Ever wanted to learn about the basics of online investing? We're here to give you a straight-forward answer with some questions for you to consider and some tips to help you become successful with your online investments along the way. Now we realize you don't need someone there every step of the way, but we also know that you like to research things so you can make smarter decisions. Hey, we've been there before too. Remember, you can also connect with others in the ZeccoShare investment community forums. You'll probably find people who have or have had the same questions you're asking right now. Our short list of things to fodder:

• Your personal investing goals
• Risks of investing online
• Amount of  money you want to start investing online
• Type of investment account you might open
• Type of online stock broker that may be best for you

Online Investing, Setting Goals, and Online Trading

Once, stock investment brokers served only the rich and you had to go through a stock investment broker. If you wanted a stock, you called your broker (who you doubtless visualized ensconced in an overstuffed brown leather chair, chomping on a cigar). The broker arranged the whole thing. This person served as the only source for all of your information. Doing your own research involved paying money for subscriptions, and tracking your stock performance meant you needed the Wall Street Journal.

The Internet changed investing. Online investing allows you to call the shots. You avoid paying commissions to brokers. Instead pay a small transaction fee to a broker like Zecco Trading when you execute trades. With the wealth of information available online, it is possible to research your own stock investments and track stock performances. Nearly anyone can become a savvy investor. Of course, risks still exist. But if you are careful, and you understand the ins and outs of investing online, you can limit your exposure.

What are Your Investing Goals?

In order to reach your retirement, income or other financial goals, you have to first set them. Seems obvious. But there are plenty of investors who toss money into various investments without a clear plan. Before you begin your online investing adventure, consider your investing goals. Ask yourself this question: Why am I in investing?

Many people have different reasons for investing, including (but certainly not limited to):

• Additional income
• Save for retirement
• Reach short terms goals (i.e. go on vacation or buy a new car)
• Amass wealth

As part of defining your investing goals, you need to know what type of investor you are. We all hate labels in this day and age, but labels do have their uses. Classify yourself as one of the four main types of investor: aggressive growth, growth, balanced growth and income and conservative income. Once you know what type of investor you are, you can more clearly define your investing goals.

Aggressive growth investor. The aggressive growth investor tends to go for the volatile investments. These securities are attached to a high level of risk. Currencies, commodities and some IPOs and new companies fall into this category, as well as risky stocks. Prices fluctuate often, and it is possible to make a great deal of money - if you manage to get in at the right time and sell when you have made large gains. The aggressive growth investor also leans towards more activity. He or she "aggressively" trades, looking for maximum returns. A high risk tolerance is necessary along with the ability to stomach the ups and downs that inevitably come with the securities he or she trades.  Check out our asset allocation page for a sample portfolio.  

Growth investor. For those interested in a fairly high rate of return, but want to preserve most of their original capital, a growth investor approach can be a good option. The growth investor expects reasonable returns, and takes some risks in order to experience them. He or she might dabble in some commodities and currencies, and try ETFs. However, he or she is not as aggressive as the aggressive growth investor, and does not seek out the same kind of volatile securities. Check out our asset allocation page for a sample portfolio.  

Conservative income investor. It seems a little counterintuitive that someone would invest merely to preserve the value of the assets he or she already has. After all, isn't investing about some measure of growth? Or at the very least creating some sort of income stream? Not always. For some, investing is more of a way to hedge against the inflation, which can erode the value of one's existing capital. These are the most conservative of the investors. They are more interested in ensuring that their assets are protected. Cash investments, index funds and government bonds are staples of the conservative income investor. Check out our asset allocation page for a sample portfolio. 

Tips for Online Investing

• Think about how much money you start with. We don't want to provide you advice, but you may want to start small to test the waters. Perhaps even using a little more than the account minimum. This way you can learn how stock investing works, and gradually go from there. At Zecco Trading there is no minimum balance requirement, so you have the ability to start small without running into any minimum fees. 
  
• Consider diversifying your portfolio. We're not advisors but you could open yourself up to risk by concentrating on only one type of investment. If your choices lose value dramatically, it could be financially painful. Zecco Trading offers a range of investments to help you get started. 
  
• Make use of different orders. It is possible to limit your investment risk through tools known as orders.
• Prepare for problems. In any investing, problems are inevitable. Consider choosing an online broker with a phone customer service line that you can call in case of problems.
• Loss is part of the game. Remember that some losses are inevitable. The goal is to invest wisely so that your gains exceed the investments you lose on.
• Research. Research the investments you plan to make. Find out about performance, and look into practices and fundamentals so you can make more informed investment decisions. Some online investing websites provide free research tools like Zecco Trading.  Zecco Trading offers customers free access to S&P's analyst research on stocks and options. 
  

• Consult a tax professional to understand your tax implications.

Choosing an Online Brokerage/Broker

Open an account at Zecco Trading.