|
Information
> This page
Tips for Online Investing: What You Need
to Know About Trading In Fast-Moving Markets
(Source: U.S. Securities and Exchange
Commission)
Online
trading is quick and easy, online investing takes time
Set your price limits on fast-moving stocks: market orders vs. limit orders
Online trading is not always instantaneous
(Member section)
Know your options for placing a trade if you are unable to access your
account online (Member
section)
If you place an order, don't assume it didn't go through
(Member section)
If you cancel an order, make sure the cancellation worked before placing
another trade (Member
section)
If you purchase a security in a cash account, you must pay for it before
you can sell it (Member
section)
If you trade on margin, your broker can sell your securities without giving
you a margin call (Member
section)
No regulations require a trade to be executed within a certain time
(Member section)
More Information (Member section)
What To Do If You Have a Complaint
(Member section)
The price of some stocks, especially recent "hot" IPOs and high
tech stocks, can soar and drop suddenly. In these fast markets when many
investors want to trade at the same time and prices change quickly, delays
can develop across the board. Executions and confirmations slow down,
while reports of prices lag behind actual prices. In these markets, investors
can suffer unexpected losses very quickly.
Investors trading over the Internet or online,
who are used to instant access to their accounts and near instantaneous
executions of their trades, especially need to understand how they can
protect themselves in fast-moving markets.
You can limit your losses in fast-moving
markets if you
- know what you are buying and the risks
of your investment; and
- know how trading changes during fast markets
and take additional steps to guard against the typical problems investors
face in these markets.
Online
trading is quick and easy, online investing takes time
With a click of mouse, you can buy and sell stocks from more than 100 online
brokers offering executions as low as $5 per transaction. Although online
trading saves investors time and money, it does not take the homework
out of making investment decisions. You may be able to make a trade in a
nanosecond, but making wise investment decisions takes time. Before you
trade, know why you are buying or selling, and the risk of your investment.
Set
your price limits on fast-moving stocks: market orders vs. limit orders
To avoid buying or selling a stock at a price higher or lower than you
wanted, you need to place a limit order rather than a market
order. A limit order..................
More
information is provided in the Member Area
Recommended further reading:
Sec
Interpretation: Use of Electronic Media
Internet Fraud: How to avoid Internet
investment scams
|
