Getting Started in Online Investing

Table of Contents......Page 5
How to Use This Book......Page 9
Don’t Miss Our Web Site......Page 10
Comparing Online Investing to Traditional Investing......Page 11
Evaluating the role of the broker versus the computer......Page 12
Comparing speed......Page 13
Learning investment basics......Page 14
Finding out about minimum balances, fees, and costs......Page 15
Stocks and the stock market......Page 16
Bonds......Page 17
Mutual funds......Page 18
Index funds......Page 19
Others......Page 20
Getting Started: A Checklist......Page 21
Navigating Online Investment Web Sites......Page 23
Basic Online Investing Principles......Page 25
Principle #1: Invest online systematically......Page 26
Principle #2: Diversify your online investments......Page 27
Principle #4: Select online investments for long-term growth......Page 28
Getting the Answers......Page 29
Doing a Self-Assessment......Page 31
Diversifying according to sector......Page 33
Screening Your Stocks......Page 35
Creating a checklist of stock screening criteria......Page 36
Using the screening software......Page 38
Going beyond the initial screening......Page 41
Reading what the analysts have to say......Page 42
Reviewing a company’s SEC filings......Page 43
Looking at annual reports......Page 44
Viewing other SEC filings......Page 45
Brainstorming with Other Investors......Page 47
Looking at How Mutual Funds Work......Page 48
Reviewing a copy of the fund prospectus......Page 49
Advantages and disadvantages of mutual funds......Page 51
Finding out about fund fees......Page 53
Finding a Fund That Meets Your Objectives......Page 55
Comparing funds: Standard & Poor’s Micropal Web site......Page 57
Using the Morningstar commentaries and fund screener......Page 59
Finding socially conscious funds......Page 60
Buying Mutual Fund Shares Online......Page 62
What’s a Bond?......Page 63
Looking at the bond issuer......Page 64
Researching the issuer’s credit rating......Page 65
Taking inflation into account......Page 66
Differentiating notes and bills......Page 68
Researching tax advantages of bonds......Page 69
Researching Bond Basics Online......Page 70
Visiting the U.S. Treasury Web Site......Page 71
Finding Treasuries on the Web......Page 72
Buying Treasuries online......Page 73
Using other Treasury online services......Page 74
Looking over Online Brokerage Services......Page 75
Finding a Reputable Online Broker......Page 76
Questioning the advertised commission......Page 77
Looking for hidden fees and costs......Page 78
Asking the Right Questions before Deciding on a Brokerage......Page 79
The Gomez ranking services......Page 81
Visiting the SmartMoney site......Page 84
Opening Your Account: The Process......Page 85
Bypassing the Broker with a DRIP Account......Page 86
Getting the Current Market Price......Page 88
Buying at market......Page 91
Issuing a limit order......Page 92
Understanding the complex stop limit order......Page 93
Executing and confirming an order......Page 94
Taking Advantage of After-Hours Trading......Page 96
Coping When You Can’t Connect......Page 97
Deciding When to Sell a Stock......Page 99
Rolling Over Your Mutual Funds......Page 101
Saving the Right Paperwork......Page 102
Safekeeping the essential documents......Page 103
Discarding what you don’t need......Page 105
Determining what to monitor......Page 106
Types of portfolio tracking software......Page 107
Using the versatile Morningstar tracker......Page 108
The comprehensive Yahoo! tracker......Page 109
Tracking each transaction with Microsoft Investor......Page 110
Looking at Who Gets Cheated and How......Page 111
The pump and dump......Page 112
Illegitimate IPOs......Page 113
Web Sites That Protect You......Page 114
CLIFFSNOTES REVIEW......Page 117
Books......Page 121
Magazines and Newspapers......Page 122
Send Us Your Favorite Tips......Page 123
INDEX......Page 125