Web relationships get tangled

Friday, August 28, 2009 16:51 | Filled in credit cards, debt, economy

Web portals promote thoughtless online trading. Web portals are paid  by online brokers for each customer they send to the broker. Portals run  “news” stories about stocks and then include links in the story to online  brokers where you can quickly buy or sell the stock. If you give credence to  printed material formatted as news, you are likely to be drawn into making  online trades by a Web portal.

Online brokers trigger impulse buying. Impulse buyers do not even check  the latest corporate news. The availability of cash or margin triggers purchases  of any stock or fund that looks fun, sure, prestigious, or attractive. In  seconds, the buy is executed and the impulse over. Remorse often follows.

Only investors with good research skills, independent attitudes, and patience  are happy with online brokers. Others are outside their comfort zone.  Impulse buyers should stay away from stocks in all forms. Real estate, oil  and gas, and other asset classes are better routes to happiness.

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