To: StockDung who wrote (5197 ) 10/20/1999 3:28:00 PM From: who cares? Respond to of 10354
Did someone forget to tell Scott Elder that he is CEO of ZSUN?daily-herald.com Company provides online trading techniques 07/18/99 01:00:00 AM By TOSHA STRICKLAND Herald Correspondent OREM - The Internet has opened up a whole new avenue for those who want to manage their own investments, for those concerned about retirement, and for those who want to start or continue to build a nest egg. Scott Elder is one of them. "After being introduced to cyber-investing, I switched my accounts over so I could manage them, to move them as I wished," said Elder. "I made a $3,000 change in my portfolio in a three-week period. Some say 'moderation in all things,' I call it 'discipline.' " In August 1997, Scott Elder and Ross Jardine both of Orem started Online Investors Advantage. Their goal is to be an educator in helping people make sound online-investment decisions. "We want people to be out there swimming around," Elder said, "but we want to give them a few swimming lessons first. Most failure with online trading is the investors' own fault - lack of knowledge." Online Investors Advantage offers a two-day seminar at various locations across the country. The seminar includes a video set, workbook, access to two instructors, six months of free access to their proprietary Web-based analysis tool, and a six month subscription to the OptionInvestor online newsletter. Karen Shamberg, a seminar participant said, "I didn't touch the material for awhile after the course, but once I started using it, within 30 days I had made back my tuition." A 90-minute introductory video course is free. Tuition for the two-day seminar is $2995. For those that are a little skeptical, there is a 100 percent refund available after the first day of the seminar. "We want to take the emotion out of trading, learning when to get in and out is key," said Elder. His seminar teaches the basics, how to search for a stock candidate, and how to know whether it is a good company or not. Technical analysis is also a big part of the program so investors will know when to get in on a particular stock and most importantly, when to get out. Other techniques are discussed such as covered calls, renting stock, stock splits, index investing and credit spreads. "I have a friend that is a licensed stock broker. He said we were doing things in the seminar that they didn't teach him when he was obtaining his broker license, but that were fundamental points you needed to know," said Allen Finlinson, and Orem resident. Some online investors call themselves day traders. The defining cardinal rule of day trading is that you don't leave an open position overnight. All day traders go home "flat" at the end of the day, that is, holding no position. "The day trader creates more liquidity in the market as they increase the activity of buying and selling. A drawback is on a high volume trade day you may get a busy signal, the Internet may disconnect. You can lose if you can't get your order executed," said a Provo broker in a Provo firm, who asked to remain anonymous. Other online investors are swing-traders who hold a position for 3-5 days. "The added value is in long-term trading but there is no reason why you should lose money when the stock falls. By missing the 'valleys' you can increase your cash flow," said Elder. The cost of going through an online trading broker on average is $19.95 per trade. Some companies charge up to $29.95 and other will go as low as $7. "This eliminates the middle man, the high commissions paid to a broker who makes investment decisions for you." said Elder. He added that sometimes those decisions are not the best. "Online Investors Advantage has helped me to look, watch and select with an educated eye. I am a wiser and more confident investor because of it," said Finlinson. Online Investors Advantage has recently been acquired by ZiaSun Technologies Inc. in April. ZiaSun is an Internet holding company that acquires Internet-related businesses. "This merge allows us to get into the international market, to show them how to place trades online, eliminating the time zone factor," Elder said. "This is my hobby and my profession. It makes money, and it's fun." The Daily Herald Copyright 1999, Pulitzer Community Newspapers, Inc.