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The Internet’s Impact on Stock Trading Essay

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"The Internet’s Impact on Stock Trading"

Before the internet, stock trading was done exclusively through brokers. Now that computers and technology have apparent strongholds in the realm of stock trading, more people have access to the market. This essay shares some experiences that online stock trading services and day traders have had due to the radical movement of online trading. The essay commences with a fictional anecdote that describes one man’s unfortunate experience through online trading. It then moves to some non-fictional examples. One company was forced to leave the prospect of trading behind and had to close its services. Another has found refuge in expanding its holdings by moving its primary focus away from …show more content…

But soon, many investors would realize that this wasn’t the case.

Jon was one of these would-be investors. He found internet stock trading as a way to break into the stock trading game but the game was not kind to him or his finances. In 1998, he created an account with an online stockbroker, which made trading easier. There was no consultation with a professional broker and stocks could be bought and sold at the click of a button. In addition, the stock market’s boom was kind to investors. Stocks in technology seemed to be always on the rise. Jon invested. He took three thousand dollars and invested under the impression that his money would double or perhaps triple. A mere two years later, these internet and technological companies experienced a realization.

They were vulnerable to an economic decline. In March and April of 2000, the technology boom was no more. In fact, it imploded: it collapsed in upon itself. Investors are still trying to quantify the damages and costs. Jon’s small portfolio was at the mercy of the technology implosion. He too became a loser in the investing game. His family savings was not doubled as he hoped, but rather, worth only a couple hundred dollars. Now, he is not sure where to turn: “I thought I had made the right decision. I saw an opportunity to help my family and our financial status and jumped on it. I never saw the true risk involved. Technology was hot. Who could

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