Investing Information on the Web: How to Learn More About Stocks, Bonds and Mutual Funds ©Geraldine Sombke-Brightwebs.com

A. Where to begin: Basic information - what's out there?

The web is full of information that used to cost hundreds of dollars per year for subscriptions. This course will not attempt to replace your broker, but will give you the tools to know what to ask. It will NOT make investment recommendations.

Before you go to a lot of trouble to sign up for accounts and personalize a portfolio page, let's learn some terminology.

B. Learning the language:

These sites provide the basic terminology you need to ask the right questions about an investment

http://www.motleyfool.com -
Fool School, where you can learn to figure out a stock s true value, how to find a broker, all about mutual funds and more.

http://www.moneysense.ca

A website and a magazine owned by Rogers Media.

http://www.investopedia.com/ -

combines tutorials on stock basics and fundamental analysis with definitions P/E ratio, dead cat bounce etc.

http://www.investorama.com (opens in a new window)

Self described as "one of the most comprehensive directories of financial tools available for investors on the Internet, and as an easy-to-use starting point from which investors can begin to explore the Web's myriad of financial opportunities."

http://www.myprimetime.com/money/

Another personalized site with a senior focus.

http://www.site-by-site.com/

A whole world to invest in

http://www.webfin.com/en/

Canadian investing information from Canoe

C. Stock quotes online sources

http://www.globeinvestor.com

The Globe and Mail site gives you the same info as the newspaper version, and often faster.

http://www.fundlibrary.com

one of the first websites in Canada devoted to mutual funds, according to columnist Daphne Bramham of the Vancouver Sun

http://www.morningstar.ca

excellent links to Canadian investment education and provincial securities commissions

http://www.cdnx.com/Investing/

The Canadian Venture Exchange offers quotes and report services on their listed companies Top of the page | Home

D. Creating a portal page to track your portfolio

Why do you need to log in?

Logging in gives the site your name and e-mail address and allows them to count you for advertising purposes and to direct specific e-mail advertising your way.

Privacy vs. information

There s no such thing as a free lunch. The information you are being given is supplied by someone, in exchange for a benefit they get to advertise to you, you get free financial info in return.

Allowing Cookies

A cookie is information that a Web site puts on your hard disk so that it can remember something about you at a later time. For more details on cookies, see http://www.whatis.com and type Cookie in the search box.

E. You may already have the tools you need

If you already have an account with free webmail on Yahoo, Excite, MyBC or a similar page, you can customize the page to track the stocks you are interested in. This may give you all the information you want.

Provide minimum information

This is a good place to use your throwaway webmail address, and do not put actual portfolio information, merely stock symbols you want to track. Unless you are dealing with a secure site, you do not want to use actual account numbers or any other financial identifiers. You also might spend a lot of time listing each share purchase etc. only to have the site disappear if the company goes broke.

Try it out slowly.

Online investing is a place where you can make big mistakes very quickly. One commodities broker has a great web site http://www.mainstreettrading.com/ which allows all kinds of research and portfolio monitoring but requires a tape-recorded phone call with a broker to enter an order -a great safety feature.

On the topic of commodities trading, remember the advice of Andrew Tobias, author of The Only Investment Guide You ll Ever Need:

"There's only one thing you need to know about commodity trading - You Will Lose a Lot of Money"

Find Tobias website at http://www.andrewtobias.com/index.shtml Top of the page | Home

E. How to Evaluate what you read:

Remember, always consider the source of any information you receive. Although most on-line services, bulletin boards, and chat rooms display the screen names of users, individuals can remain anonymous behind aliases and misinformation.

While most individuals have honest intentions and use the Internet as a legitimate investment tool, others may seek to distribute information and advice in order to manipulate prices or take advantage of unsuspecting investors.

In most instances, there is simply no way to uncover someone's true identity. Are you getting information from a broker, short seller, corporate insider, amateur investor, or stock touter? And why do they have a stake in what you do with your money, anyway?

Safe Surfing

Be your own watchdog. The Internet is vast and resources are limited. Regulators just can't keep an eye on every corner and crevice.

Question all advice. If you don't know the source of information or the motives behind the source - as is often the case on the Internet - challenge the validity of the information.

Never make investment decisions solely based upon what you read on the Internet. Always consult other resources.

Do your homework. Although the Internet opens up access to a variety of new information sources, there is no substitute for your own detailed research.

Use good judgment. After all, every investment has its risks. As the saying goes, "If something seems too good to be true, then chances are, it probably is." It might be a cliché, but it's right on the money.

If you suspect something is shady, trust your instincts. Call on the experts. The BC Securities Commission can be found at http://www.bcsc.bc.ca/ Top of the page | Home

Miscellaneous links:

Local banks: (note that this is not a comprehensive list, just a sample of websites)

http://www.vancity.com/investing

VanCity says it offers one of the most comprehensive ranges of investment products of any financial institution in the market today.

http://www.hsbc.ca/

HSBC s site offers personal loan calculators, mortgage calculators, mutual fund prices and investment information

http://www.cibc.com/

Click on the Investor s Edge Online Brokerage

http://www.tdwaterhouse.ca/investmentadvice/index.jsp

Toronto-Dominion s online education page

Other miscellaneous educational pages:

http://home.cnet.com/internet/0-7009.html

CNET s links to investment information and software tools. ** Reminder - back up your files before installing any software, particularly shareware **

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The following are some basic thoughts from Peter Lynch, who made Fidelity Magellan an incredible success when he was the fund manager:

"Peter Lynch believes that amateur investors can outperform Wall Street experts since the best investing clues can be found at the mall, on the school playground, or at people's workplace.

The Wall Street guru says that the secret to his success is his ability to "think like an amateur." He offers a common-sense approach to stock picking: Know the "story," or everything about a company, before buying a stock; then follow the "story" after buying the stock. He says, "Don't sell the stock if the 'story' is still good, whether the market is up or down."

To begin to select a "story," find publicly traded companies that provide good products and services. You can begin to gather information for your "story" every time you walk into a mall, go to a restaurant, or play with your friends. That is, wherever you go, do firsthand observations on companies or products to gauge whether the company is strong and growing. See for yourself whether the store is clean or messy. Are people lining up at the cash register or does the store look empty? Are the customers happy with the services or do they complain a lot? You are not likely to see an empty McDonalds or Wal-Mart."

Good luck and when you become rich and famous, don't forget to write.

email me at Brightwebs.com

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