It looks complicated to know how to invest online and make money. Almost every individual investor or private trader thinks that it is very tough to beat professional money managers like hedge fund managers.
Yes there are some obstacles that are in front of us , individuals, who want to trade stocks online using our home computer. We are not able to hire a lot of staff to do research for us. We are also alone in our business, we cannot consult opinions, study every possible source and be sure in investing decision.
We cannot spend a lot of time making visits to individual companies when we want to analyze their business and performance.
But you know what? These points mentioned above are not necessary to know how to invest online and make a lot of money. And also how to invest online and beat professional money managers with our own performance almost every year.
Private trader does not need to trade stocks online every day
Yes, this is a big advantage. We as private investors or traders do not need to provide monthly performance to our investors like fund managers should do. We can better adjust to the market situation and use different market strategies.
It is normal to have no trade open and be in cash as cash is also a position. The key is preservation of our capital and minimizing of risk in a situation when we are not synchronized with the market.
Easy entry and exit of any online stock trade
It is quite easy to open or exit positions for us as private investors. We do not need to buy or sell short too many shares. Our position does not affect price development even if we need to buy thousands of shares.
Big institutional fund managers managing billions of USD are buying hundreds of thousands or millions of shares and such size moves price. This is a big issue, as a lot of private trend traders using movements generated by these big fund inflows to make a lot of money in their trend-based stock trading strategies.
No clients, public scrutiny or regulatory disclosures
There is no need to disclose your trades or investments to anybody else. There are no regulatory requirements for private traders. You can select any trading strategy and any trading or invest style you want.
The hedge fund industry is now under serious overview of regulatory bodies. Although I do not think that these funds are making our economic situation problematic. The governments and their reckless debt accumulation and their constant push to growth allowed creation of bubbles. Any trader understands this.
Nobody is going to fire you when you make a mistake. You have enough time to recognize it, learn from it and correct it. But it is very important that you must have procedures to find that something is going wrong and how to correct them.
Private investors and traders enjoy much lower fees for market data or for trading commission than professional fund managers. It is a benefit of our non pro status.