When a trader is trading online

When a trader is trading online, he makes choices based on his own
research and there is no broker to advice and confirm his
order. Consequently, it is extremely important that online traders
competency in operating their online stock trading software as it is
common for traders to have pressed the buy button instead of the sell
on their online trading software by mistake.

Try out the online trading system first before choosing your online
broker; I am sure that you can find one that you are comfortable with
before starting out to trade with your money. Most online brokers offer
the use of a virtual account where you can practice and sharpen you
trading skills.

Past earnings records do not guarantees future

estimates. Past earnings records do not guarantees future
performances. Very unfavourable risk / reward ratio. All the odds are
against you.

“An important key to investing is to remember that stocks are
not lottery tickets” – Peter Lynch

Completing your learning curve

There are definitely advantages to online trading, but as an individual
trader you will have your learning curve in becoming an online trader.
You’ll need more than basic computer skills if you want to excel in your
trading as some of the online trading software may be quite
complicated if you only have basic computer knowledge.

Addictions

3. Addictions –You will be obsessed in finding jackpot
trades. The amount of excitements you get out of the one
strike of a chance winner can get you addicted. Just like
drugs, addicts are after the “high” effect.
4. Mood Swings – the emotional implications are just too
dangerous for anyone to handle. It can affect your life and
family. The amount of stress can be damaging to your
health as it screws up your mind. You will develop an
“irritability” personality and become an angry or
impatient person.
The truth about earnings is that they are very difficult to predict. Even
companies themselves often are unable to forecast their future
accurately. They take measures to ensure their earnings are right on
target. What most investors don’t know is that companies sometimes
“manage” their earnings to meet analysts’ expectations and we should
not give them more respect than they deserve when assessing their