Online trading pitfalls

WUPW - You can do just about anything online these days, from posting pictures, to finding a job, or keeping your checkbook up to date.

With all this convenience at your fingertips, you might wonder if you should invest online, too.

Mike from Perrysburg asks, "What do you think about trading on Web sites like e*trade or Scottrade?"

Well, I think it is a fantastic idea, that is, if you have the time to devote to it and enough self-control.

Online trading Web sites can save you a lot of money. Many offer such low cost-per-trade rates, that it would be almost impossible for a firm or broker to match.

As these kind of sites evolve, they have more to offer. Many can walk you right through the process of trading stocks. Sometimes they'll offer ways to chart stocks, and even offer you recommendations.

So who needs an adviser?

Well, that depends. Making educated financial decisions takes time.

An adviser's job is full time. They have to stay informed on a day-to-day basis of all the variables that could affect your finances.

Think about this: much like online shopping, it can be too easy to log in to a site and make major financial decisions you could regret. Emotional buying and selling of stocks is a recipe for disaster.

An adviser is more likely to be able to make rational decisions.