When most of us hear about the stock market, it doesn’t really interest us very much. This is because the stock market is seen as something that is only accessible by the rich and powerful, which most of us are not. This is not necessarily the case, but this perception has created a market for cheap online brokers who provide their services at a lower cost. But of course, the real question is…why are they cheaper?
This is simply because they do not provide the same range of services. When you go to a traditional brokerage firm, you not only get access to the market. You also get the advice and help of a qualified professional. The cheap online banker, on the other hand, does not usually provide advice and wouldn’t really be qualified to do so anyway. They simply allow you to access the market and that’s about it.
One problem with this is that the market can go dramatically up and down in a short period of time, and it is in fact quite common. A stock that looks great one day could take a plunge the next day. While many people have made huge amounts of money in the stock market, many have also lost huge sums of money. Investing without guidance could be compared to playing Russian roulette with your money. The SEC issued this warning about online banking and some of the pitfalls that exist.
If you’re looking for Business brokers Minneapolis MN who can help you get started in the stock market, my advice is to simply get the phone book out and find them. Rather than waste your time with snake oil salesmen on the internet, it is better to save your money a little longer and pay a little more for the services of a qualified person.
Now don’t get me wrong. Online banking is not a total dead end, but unless you are already an expert in the stock market, it will not serve your needs as well as the traditional approach. With the traditional approach, you get a lot more surety in the investment of your money. I don’t know about you, but I certainly can’t afford to waste money on bad investments.
Here is a good example of why the help of a professional is so valuable. In august of 2000, Forbes Magazine published an article called “10 Stocks To Last The Decade” (It can be found here). Fast forward to December 2012, and we see that this particular portfolio has lost about 75% of its value. So, what happened?
What happened is the exact same thing that happens every day when anyone tries to predict the weather. The stock market is a lot like the weather in the fact that nothing is certain. However, just as the National Weather Service is able to predict certain things with reliability, so too is a skillful stock broker able to read the winds of finance and discern the safest way to sail.