| The U.S. Securities and Exchange Commission | | | | the price that second, not necessarily the price |
| warns investors that buying and selling "hot" | | | | set at purchase time. |
| stocks that have the tendency to rise and fall | | | | For example, when you place an order for a $10 |
| quickly can be dangerous if unexpected delays | | | | stock, placing a limit order will ensure that you |
| occur. Without even realizing it, investors can find | | | | don't end up paying $35. The same is true for |
| themselves losing money. | | | | selling. The stock will sell when it hits the target |
| The U.S. Securities and Exchange Commission | | | | limit, eliminating sudden losses. The risk here is a |
| warns investors that buying and selling "hot" | | | | loss of control to hold certain stock just a little |
| stocks that have the tendency to rise and fall | | | | longer in the hopes that it will continue to rise. |
| quickly can be dangerous if unexpected delays | | | | Once it hits the selling target, it is sold. |
| occur. Without even realizing it, investors can find | | | | Remember, Online Trading Isn't Instantaneous |
| themselves losing money. | | | | Trading online can feature its own dangers. |
| Just because you can access your account online, | | | | Problems with modems, servers, or delayed |
| doesn't necessarily mean that your trades are | | | | broker-dealer hardware can all cause a delay or |
| instantaneous. Limit your losses in these | | | | failure in an immediate stock trade. Know what |
| fast-moving high tech markets by: | | | | trading alternatives your firm offers (telephone, |
| ·knowing what you are buying | | | | fax, etc), in the event a technological problem |
| ·understanding the risks involved in your | | | | interrupts your transaction. |
| trade | | | | Avoid Double Buying/Selling |
| ·know the trading process for fast-moving | | | | Too often investors mistakenly think that their |
| markets | | | | order did not go through and place another order. |
| Guard against some of the most common | | | | This can cause them to buy stock they did not |
| problems investors encounter in fast-moving | | | | want, or even sell stock they did not own in the |
| markets. | | | | first place. Be sure to check with your broker on |
| Market Orders vs. Limit Orders | | | | what to do if you aren't sure if your trade has |
| When stocks drop or soar suddenly, being stuck | | | | gone through. |
| in the process of trading can mean the difference | | | | Choose the Best Broker |
| between making a sizable profit, and losing a | | | | Buying and selling in a fast-paced market takes a |
| bundle. Delays can develop in fast-moving | | | | broker who's capable of handling transactions |
| markets, slowing down executions and trade | | | | quickly. There are no Securities and Exchange |
| confirmations. What you thought you were selling | | | | Commission rules that require any trade to be |
| at one price, may be end up selling for quite | | | | executed in a specific amount of time. Finding a |
| another. Avoid buying and selling at prices higher | | | | broker that doesn't delay is up to you, the |
| or lower than you expected by placing limit order | | | | investor. Take your time and research brokers |
| instead of a market order. Limit orders are | | | | carefully in order to avoid losing important assets |
| executed automatically when they reach a set | | | | unexpectedly. |
| upon price, unlike a market order which is filled at | | | | |