Internet Investing

You're a hands-on kind of a person, achieved a comfortable lifestyle, got some extra cash on hand. Tempted to try investing that money, yourself, on the internet?

The lure of internet investing can be almost irresistible so it's a good idea to proceed with caution. Learn the rules first because it can be as much fun as a game when you invest only money you can easily lose, play money. The wise investor will understand from the start that investing, internet or not, is a game to be played over many years' time.

There are only four rules to the game of internet investing:

Know what you are buying

Do the research; consider purchasing stock in a company you already buy products from; understand how the company invests its profits, handles ethical issues, respects the environment; explore who is the competition; and where does your targeted company rate competitively.

Learn the lay of the land

Internet investing does not connect you directly with Wall Street. Your transactions will go through a brokerage firm first, then on to Wall Street. All the rules (and risks!) that apply to traditional trading apply to internet investing, too.

Understand the risks

Even the most diligent research won't give you the depth of information available to the professional financial advisor. The pros have access to trade shows, professional publications, seminars, conferences, and professional networks just not available to the individual.

Invest for the long term

Market price changes daily and your invested wealth will fluctuate accordingly. Remember that today's loss of 5% is offset by last week's gain of 6%, all the while tempered with last year's performance.

Most importantly, never invest money you don't have to spare in the first place. Ready. Set. Go?