by John Shaggy

Created on: May 21, 2010   Last Updated: June 25, 2010

 We all know and we have all seen the results since 2008 on how brokerage houses and the ‘big’ banks have skillfully duped and tricked John Q. Public into a false sense of security.  We have watched them lose billions of invested capital of our money, go bankrupt or be ‘bailed out’ by our friends in Washington to pay themselves bonuses with taxpayer money—and why should we wonder that the ranks of individual investors are swelling the ranks of the capital markets?

The trust and esteem once held by the individual for our financial institutions is long gone, and in the brave new world we live in now, we feel much more comfortable taking care of our own money and doing our own investing.  After all, if we lose our money with our own poor investment choices, at least we only have ourselves to blame.  The average investor who has lost forty percent of their investments have finally awakened and are taking responsibility for their own futures.  Instead of being alarmed and horrified by the growing ranks of individual investors in the capital markets, we should be applauding and cheering them on for a return to financial sanity in an insane, dysfunctional financial system.

With the advent of online trading sites the days of the brokerage house have become numbered.  All online sites  have a set of trading tools and educational programs designed to help the individual investor become self educated and aware of the risks and pitfalls of the capital markets.  Most, if not all also have safeguards such as the stop loss order in place, which will automatically sell all shares of any stock offered if the price drops below a certain level.  A well-informed individual investor can learn the equivalent of finance major if he or she is willing to learn.  Most online trading sites also have access and education on stock options, which are more difficult to grasp, but offer greater rewards.  With greater rewards of course comes the possibility of greater risks.  The point is that same education used by the brokerage house is also available to the individual investor as well.

In a by-gone era, the brokerage house served its purpose and served it well, but that was in days when greed did not rule and there were some scruples left.  Those days are gone.  An individual investor can fare just as well on their own as by putting their money with someone else today.  Today’s technology makes it possible for almost to be a successful trader if they are willing to take the time and put the effort in to become one.  Will that someone be you?

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