Investing Online Essay - 758 Words

Investing Online Personal Investing with Computer Technology Introduction Computer technology has revolutionized the way people can invest their money. Online trading has become the newest fad for people trying to get more bang for their buck. Virtually anyone with access to the Internet can set up an online brokerage account. With just a click of the mouse people can buy and sell stocks. This advanced computer technology for personal investing has its pros and cons. It has made it much easier for the average person to take care of his/her finances in an inexpensive manner. It has alos made it easier for people to become addicted to trading, which can become an expensive habit. Trading Stocks Inexpensively Online†¦show more content†¦It can also compare a stock symbol with the SP 500 Index and the NASDAQ Composite Index to give an investor an insight how a stock is doing in comparison with the industry average. These tools are very valuable for an investor to be successful in their analysis of companies, industries, and the economy. Just five years ago, not one person invested over the Internet. But now, by one acount, more than 7million Americans trade online, making up to 25 percent of all trades by individual investors (Fritzlen, 2000). With this trend, more and more people will be using the Internet to do most of their investing. Addiction to Online Trading The growth of online trading has generated a new breed of addicts: the average day trader. The average day trader looks at the stock market in the same manner as they would a casino. With the stock market, many believe they have a higher probability of winning than in a Las Vegas casino. By winning, I am referring to generating a return from their investment. The stock market seems to be in a more controlled environment than a casino. But if the investor does not actually know what he/she is investing in, the stock market can become a gambling table. The fact is, stock market gamblers stand to lose far more money than casino gamblers, say Devin ONeil, deputy director of New Jerseys Council on Compulsive Gambling. DayShow MoreRelatedBest Stock Investment Strategies By Billy Williams Essay924 Words   |  4 PagesDecades ago, Benjamin Graham, wrote his book, Security Analysis, based on his experience with seeking out companies that were considered bargain stocks based on his analysis of a company s intrinsic value which later became known as value investing. Value investing is predicated on finding companies that have a strong competitive advantage within their marketplace and a greater asset value than their current capitalization of their company. 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