To avoid losses of Online Trading
Therefore, the financial experts in this area believe that the investor is not in the ten errors in electronic trading on the Internet to avoid losses; namely
1 - Adoption of the investor entirely on the Internet in the process of circulation, and may not be available when needed him; due to the interruption of communication lines, or defects in the organs of the mediator, and here the investor must ensure that they have an alternative means of buying and selling through other routes when needed.
In this context, Ahmed Ibrahim - one dealing with one of the companies of "mediation" in the United States of America -: respectable companies often provide alternatives to complete the sale and purchase in the event of network failure, or inability of the investor access to the Internet, including The provision of the so-called "Cook Center" or call centers that receive direct instructions or requests by telephone and by the investor directly, in addition to other alternatives sending faxes. Indeed, Ibrahim indicates that some brokerage firms have the proportion of the U.S. commission if the delay in the implementation of the purchase order or sell the stock at the market price for one minute; which shows how companies try to maintain clients through unsustainable errors that could lead, which is not By the investor.
2 - the lack of a brokerage company in both the safety of information or complete transactions through the site; must therefore ensure that the communication medium is through a secure, through the use of browser has the ability to communicate safe, and to ensure that the mediator to secure the service.
And Captain Mohamed - expert in the field of insurance networks in one of the Egyptian information technology companies - many of the positions assigned to the commercial and financial operations are obliged to modernize and develop and secure their networks largely to keep its customers. He added that the development of the Syndicate of several laws, particularly as regards the electronic signature contributed significantly to a kind of confidence in completing transactions via the Internet.
Many intermediaries.
3 - the large number of electronic intermediaries, which makes the process of selecting the mediator and the follow-up by regulators is very difficult than before.
Here the investor in equities across the web to make sure the fact that the broker will deal with in terms of credibility and the transparency and integrity of the implementation of those orders, must be the broker of the global brokerage houses, which is known by the good reputation; In some cases, brokers and no ghost, all their Is the site on the Internet, and what prices they give is also a placebo.
Here, the customer may be subjected to the process of fraud, and discovers that the broker told him to reveal the electronic account over time to account for at least a loss suffered by the depletion of the account until after 3 days of opening the latest, and sends the balance sheet until the process seems logical, and the broker has rules Work, the most serious customer loss suffered by them; so that the broker placebo convince some new victims to join him so that the extortion and seizure of their money.
4 - there is a way to defraud must have noticed the investor, known as the "road hierarchy", which depends on the cooperation of a large number of people in the broadcast information or collect a certain amount, and should be avoided.
In this vein investor should be wary of the many information broadcast by many Internet forums, and not to forget to highlight the problems of the Internet lies in the many sources of information, and therefore difficult to assess the credibility of what appears on the screen of information.
We must not forget that some investors book online forums may try to promote the shares, or recommend the purchase or sale decision; either self-interest or enthusiasm is not supported by the expertise or information. The economists here on the importance of a motivated decisions buying and selling stocks based on reading and aware of the data market, and a technical analysis of the methods of governing the performance of the stock market.
Therefore, investors must not forget the three golden rules of investment:
First: to know what to buy or sell?
Second: to know on what basis is to buy or sell stocks.
The third rule is to know the level of risk and determined.
The temptation to rush profit
5 - the possibility of error or speed up the introduction of investor buying and selling orders, which has the lowest median responsibility towards them. Often the surprise result of the error quickly the sudden activity and the stock market; because the market is changing rapidly is very high, and must take the necessary reserves to the investor does not pay More than was intended, or more than his content.
Can avoid an experimental circulation at the outset by portfolio (Portfolio) can be illusory to follow through the Internet to find out how to move the stock and its impact on the proposed stock portfolio, should be done to stop dealing point is then, an end to the speculation in the event of adverse market trends.
6 - There are attractive offers to enter into certain investments of those who claim their access to unreasonable returns, which investors must avoid. In this regard, the investor diversification and investment vehicles; so the person does not depend to leave its capital in a small number of companies, and not Depends on one sector in particular.
As generally prefer not to be speculative (sales and purchase) the use of capital in full, but it is by 10%; so that the remaining capital of an insurance market trends reverse, is entering the full capital of gambling.
It is wrong to put every owner in the shares of one company; that the loss of landing the company or its share prices in the market for whatever reason may go all or any part of the owner; but you select shares of good companies in the market, and tried to contribute to the classification of companies into three categories (large, medium Small), as the total market value for their shares, then you better focus on medium-sized companies they are exceeded by the establishment phase, and growth are rising, and profits often semi-stable and uncertain.
Risk not without foundation
7 - did not fully trust the computer programs designed to analyze market trends, particularly as the stock market is sensitive, and improve use in the event that employ solely as information only help. You here to learn how to examine the legal and financial situation of companies by contributing to the purchase of shares, and to So you analyze two important aspects:
I: technical analysis of shares and trading volume, and track the movement of share prices during a specified period, the index tracking stock, and compared to the index-General of the shares, and the demand for buying in the market.
II: the fundamentalist analysis of the company you have selected, in terms of property, production, sales and profits through a number of years, as well as the market value of the shares of the company, and the strength of its rival in the market, and the Governing Council, and the quality of decisions it made.
8 - Some stock investors handle the margin, do not know the risks involved in this matter. In the tense market finds investor who bought the sidelines of an initial payment of the same shares as required to provide additional cash margin maintenance, if the stock price fell after that, and if money were not paid time required ; Commission, the company has the right to sell securities, and investors bear the loss.
9 - the tradition of how some professional traders and risk, and prefer to look at the stock market for investment, not only for circulation; Kaltdol daily operations include high-risk, and thus the investor to be able to bear the loss, preferably a long-term investment rather than minutes or hours.
10 - err when the investor thinks that there is a protected both in local banks or in the CMA State concerned, when manipulated by some Basttmarath, if what has been paid to the occurrence of one of the nine previous mistakes; not expected to punish the stock market caused the error.
Perhaps Khaled Abu flames - a managing director of brokerage companies in Egypt - a different view of the capital market a major role in maintaining the funds investors as long as it was a failure by the brokerage firms, adding that the mechanisms of the free market model is also a deterrent to the work of companies, especially in light of Many of the alternatives to the investor to choose the mediator, who wishes to deal with it.
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