ONLINE TRADING

WHAT DO U NEED TO KNOW ABOUT TRADING?

The price of some stocks, especially recent "hot" IPOs and high tech stocks, can soar and drop suddenly. In these fast markets when many investors want to trade at the same time and prices change quickly, delays can develop across the board. Executions and confirmations slow down, while reports of prices lag behind actual prices. In these markets, investors can suffer unexpected losses very quickly.

Investors trading over the Internet or online, who are used to instant access to their accounts and near instantaneous executions of their trades, especially need to understand how they can protect themselves in fast-moving markets.

You can limit your losses in fast-moving markets if you

• Know what you are buying and the risks of your investment; and
• Know how trading changes during fast markets and take additional steps to guard against the typical problems investors face in these markets.