Invest Online : Do It Yourself and Keep More of What You Earn

by LauraMaery Gold; Dan Post

• ISBN13: 9780471391111
• ISBN10: 0471391115
• Edition: 2nd
• Format: Paperback
• Copyright: 2000-10-01
• Publisher: Wiley

Summary

In this completely revised and updated edition of the definitive guide to online investing, J.K. Lasser's Invest Online shows investors at every level - from novice to expert - how to use the Internet to reach their financial goals quickly, easily, and more economically than ever before. This comprehensive and accessible guide will help anyone who wants to make money in the stock market profit from the amazing financial resources available online.

Author Biography

LAURAMAERY GOLD is a former financial planner and tax advisor who has written for PC World and other publications.

Table of Contents

Introduction	xiii
Who This Book Is For	xiii
A Growing Market	xiv
What This Book Contains	xiv
How to Use This Book	xv
Part 1 The Pregame Warm-Up
Why Invest Online?	3	(8)
The Benefits of Online Investing	3	(2)
The Cost Advantage	4	(1)
The Control Factor	4	(1)
The Information Age	4	(1)
The Downside	5	(1)
Security: Who's Minding the Mint?	5	(2)
What's Being Done to Make It Safe	5	(1)
Safe Practices	6	(1)
Additional Protection	7	(1)
Sites on Security	7	(1)
Additional Reading on Security	8	(3)
Assemble the Tools	11	(16)
The Hardware Tools	11	(4)
Old versus New	12	(1)
PC versus Mac	12	(1)
Bundled Software	13	(1)
Operating System	13	(1)
The Minimums	13	(1)
Notebook versus Desktop	14	(1)
The Modern	14	(1)
Get Online	15	(1)
Get an Internet Account	15	(5)
National Online Services	16	(2)
Local Internet Service Providers	18	(2)
Start Browsing	20	(3)
A Faster Surf---Hyperlinks	21	(1)
Back and Forth on the Web	21	(2)
Beyond the World Wide Web	23	(4)
E-Mail	23	(1)
Mailing Lists	24	(1)
UseNet Newsgroups	24	(1)
FTP Sites	25	(2)
Home Office Software	27	(6)
The Office Suite	27	(1)
Software Tools	28	(2)
Financial Software	28	(2)
Online Banking	30	(3)
Educate Yourself about Investing	33	(22)
Financial Planning Fundamentals	33	(3)
Budgeting and Life Insurance	33	(1)
Financial Aid	34	(2)
Get Your Finances in Shape	36	(7)
Earn More	36	(4)
Consume Less	40	(1)
Stay Out of Debt	40	(1)
Force Yourself to Save	41	(2)
Calculate Your Net Worth	43	(1)
Determine What You Can Invest	44	(1)
Investment Principles	44	(5)
The First Rule of Interest	44	(1)
The Difference between Yield and Total Return	45	(1)
Time Value of Money	45	(1)
Dollar-Cost Averaging	46	(1)
The Power of Compounding	47	(2)
Tax Deferral	49	(1)
Investment Basics	49	(6)
The Least You Need to Know about Securities	50	(1)
Vocabulary	51	(1)
Reading the Financials	51	(4)
Part 2 Work Out Your Game Plan
Develop a Portfolio Strategy	55	(22)
Setting Goals	55	(2)
Investment Considerations	57	(4)
Test Yourself	59	(2)
Risk Assessment	61	(1)
Types of Risk	61	(7)
Credit Risk	62	(1)
Cyclical Risk	63	(1)
Inflation Risk	64	(1)
Interest Rate Risk	64	(1)
Liquidity Risk	65	(1)
Market Risk	65	(1)
Opportunity Costs	66	(1)
Price Volatility Risk	67	(1)
Reinvestment Rate Risk	67	(1)
Mitigating Risk	68	(4)
Diversification	68	(3)
Term of Investment	71	(1)
Other Considerations in Creating a Strategy	72	(2)
Tax-Free Investing	72	(2)
Ethical Investing	74	(1)
Allocating Assets	74	(3)
Consider Investment Vehicles	77	(18)
The Basics	77	(7)
Stocks	78	(1)
Bonds	79	(1)
Corporate Bonds	80	(1)
Municipal Bonds	81	(1)
Government Securities	81	(1)
Mutual Funds	82	(2)
Index Funds	84	(1)
Alternative Investments	84	(11)
Annuities	84	(1)
Certificates of Deposits	85	(1)
Collectibles	86	(1)
Commodities/Futures	86	(1)
Foreign Currencies	87	(1)
International Investments	88	(1)
Junk Bonds	89	(1)
Initial Public Offerings	90	(1)
Life Insurance	90	(1)
Money Markets	91	(1)
Collateralized Mortgage Obligations (CMOs)	91	(1)
Options	92	(1)
Real Estate Investment Trusts	93	(1)
Zero-Coupon Bonds	94	(1)
Use Expert Research Resources	95	(14)
Online Business and Finance Publications	95	(1)
Feature Publications	96	(3)
News Publications	99	(3)
Newsletters	102	(1)
Electronic-Only Collections	103	(4)
Push the News	107	(2)
Investigate the Markets	109	(12)
Individual Companies	109	(5)
Quotes Online	110	(3)
Company Reports	113	(1)
Industry News and Analysis	114	(3)
Industry News	115	(1)
Industry Analysis	116	(1)
Economic and Market Trends	117	(3)
Economic News and Indicators	117	(1)
Economic Analysis	118	(1)
Market News and Commentary	118	(2)
Combined Company, Industry and Market News	120	(1)
Talk to Smart Investors	121	(10)
Find a Mentor	121	(3)
Reading the Fine Print	124	(2)
Interactive Web Sites	126	(1)
Investment Clubs	127	(4)
Use the Rest of the Internet as a Resource Tool	131	(12)
Newsgroups	132	(4)
Newsgroups of Interest	135	(1)
Mailing Lists	136	(3)
Mailing Lists of Interest: Participatory	138	(1)
Mailing Lists of Interest: Read Only	139	(1)
Internet Relay Chats	139	(1)
Netiquette	140	(3)
Lower the Volume, Please	141	(1)
The Personal Response	141	(1)
The Public Response	141	(1)
Ownership	141	(1)
All the Other Rules	141	(2)
Search the Internet	143	(14)
Search Engines	143	(1)
A Few Words about Boolean Algebra	144	(1)
How to Conduct a Search	145	(2)
Unique Word Searches	145	(1)
Combined Word Searches	145	(1)
Grouping Words	146	(1)
Ask and It Will Be Answered	146	(1)
Spelling Counts---Somewhat	146	(1)
Filters	147	(1)
The Search Engines	147	(10)
Part 3 Game Day
Prepare to Invest Online	157	(8)
The Exchanges	157	(4)
Brokers: Traditional and Discount	161	(1)
Traditional Broker	161	(1)
Discount Broker	161	(1)
Cash versus Margin Trading	162	(3)
The Online Brokers	165	(16)
Factors to Consider	165	(3)
Other Forms of Access	167	(1)
Product Choice	167	(1)
Additional Features	167	(1)
Pick Your Broker	168	(12)
Other Places to Look	180	(1)
Make an Online Trade	181	(14)
Pick Your First Stock	181	(3)
Re-Running the Basic Checklist	181	(1)
Investigating the Tip	182	(2)
Sign Up with a Broker	184	(3)
The First Timer Primer	187	(3)
Assessing Your Account	187	(1)
Confirm Research	188	(1)
Check Your Balance	189	(1)
Purchase the Stock	190	(5)
Buy/Sell	190	(1)
Quantity	191	(1)
Symbol	191	(1)
Account Type	192	(1)
Order Type	192	(1)
Duration	192	(1)
The All-or-None Box	193	(1)
Pre-Submit	194	(1)
Advanced Trading Techniques	195	(8)
Selecting Transactions	195	(1)
A Closer Look at Short Selling	196	(1)
Choosing Price Parameters	197	(3)
Market Orders	198	(1)
Limit Orders	198	(1)
Stop Orders	199	(1)
Stop Limit Orders	199	(1)
Coming to Terms	200	(1)
Making a Margin Trade	200	(3)
Options Trading Techniques	203	(12)
Placing an Options Order	203	(2)
Prepare to Trade Options	205	(1)
Placing the Trade	205	(5)
Option Symbol	206	(2)
Action	208	(1)
Type	209	(1)
Contracts	209	(1)
Order Type	209	(1)
Price	210	(1)
Qualifiers	210	(1)
Duration	210	(1)
Preview Order	210	(1)
Options Strategies	210	(1)
Basic Strategies	210	(1)
Buy/Write	210	(1)
Roll-Outs	211	(1)
Unwinds	211	(1)
Combinations	211	(1)
Spreads	211	(1)
Straddles	212	(3)
Part 4 The Postgame Show
Track Your Portfolio	215	(6)
The Information You Need	215	(1)
Choosing a Portfolio Manager	216	(5)
Let Your Broker Track It	216	(2)
Track It Yourself	218	(3)
Learn Analysis Techniques	221	(8)
Fundamental Analysis	221	(4)
Get an Annual Report	222	(1)
The Least You Should Know about Financial Statements	223	(2)
Ratio Analysis	225	(4)
Measurements of Activity	225	(1)
Measurements of Leverage	226	(1)
Measurements of Liquidity	226	(1)
Measurements of Profitability	227	(1)
Securities Ratios	227	(2)
Pick Your Technical Tools	229	(12)
Technical Analysis---The Theory	229	(2)
The Tao of Tau	230	(1)
Trend Watch	231	(1)
The Dow Theory	231	(1)
Technical Analysis: The Application	232	(5)
Moving Averages	235	(1)
Bollinger Bands	236	(1)
Moving Average Convergence/Divergence (MACD)	237	(1)
A Surfeit of Strategies	237	(4)
Afterword	241	(2)
eNotes	243	(26)
Index	269	(12)
About the Authors	281