Is the internet safe for your investment?

The Internet is the only and unrivaled source of information. It is available to anyone, anytime, anywhere. There is as much information in it as there is no sign anywhere else. It is comfortable and provides pleasant comfort for work. It’s cheap, most of the information you need is available for free. And it is up-to-date and fast, which is relatively important for investments. That all bag with you pin one big danger.

The large amount of information available and the speed with which information accesses the Internet can confuse investors in two ways. First, the elite will be in danger of succumbing to the delusion of self-confidence. It seems to him that everything is under your control. This then leads me to irrational, emotional investment decisions. And secondly, in the temptation to respond to the speed of the Internet the speed of your decisions. This gives me the fact that I stop thinking for a long time and start chasing short-term results, it will be more portfolio and his inputs will decline.

Working with the Internet requires self-control. There is no investment! It is a method of achieving financial goals to improve your lifestyle. The danger of the Internet is the anonymity of the information provided. There are many websites dedicated to investing. On these pages, it is often not possible to distinguish quality information from poor quality information. Pispvaj na n toti vtinou amatrt a poloamatrt investoi. And their often lay opinions and incorrect information form the opinions of other investors. There are known cases where, thanks to such dubious information, incredible speculation on the prices of some actions has risen. There are even cases of slight misuse of such websites in addition to the provision of relevant information in order to provoke temporary speculative price movements. The Internet is truly the only source of information. When working with us, we must be careful about the source of information from which we do not and must not succumb to the temptation that the Internet prepares on the psyche.

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The Internet has a negative effect not only as a provider of information, but also as an environment, through which it is possible to trade directly. The speed and availability of the Internet and the cheapness of stock trading through it gave rise to groups of so-called online traders. This completely changed the appearance of brokerage societies and their services.

The revolution was completed in 1999, when Merrill Lynch abandoned the traditional form of brokerage services, ie services with full service, but for high fees, and announced the introduction of an online store with low fees. This change may be beneficial for investors because it reduces their transaction costs. At the same time, the bag gives me the false impression among investors, especially those of me, that the only thing you need to hurry is the first access to online stores and the rest will come by itself.

Some investors (or speculators) have become so-called day traders. This means that you trade on a daily basis, often many trades a day and try to profit from short-term, often only hourly and even minute price movements.

The first of these people is the fullness of self-confidence, the fullness of optimism and the illusion of control most evident. Many of them have left their jobs and lasted for days at the screen of the computer and try to make money in short-term shops. For many of them, this activity is something like a drug. They are not able to get rid of her and so they are not able to think about him. Empirical evidence of several different studies shows that the results of the vast majority of day traders fall far short of market returns.

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Excerpts from the book
Daniela Gladie: Make an investment


ryvek is from the book “Make the investment”Vydan nakladatelstvm City Publishing, who published publications in the FINANCE edition such as:
VAT after accession to the EU – overview with overviews as of 1 May
Tax laws 2004 – full text of laws as of May 1, 2004
Pension connection – 2nd updated edition

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