Etrade is a financial services company which allows investors to buy and sell securities like bond options, mutual funds, stocks etc. This can be done over the phone or online.
How to Make Money
Making money through Etrade is similar to making money with other investments. You need to choose the right investment product and buy it when it is cheap. Then you need to hold onto it and sell it when the price goes up. Predicting when the price peaks can be very difficult, but if you sell when it is high and buy when it is low, then you will make a profit. Prices for these sorts of investments do fluctuate a lot though and so you will need to make sure that you are prepared to keep your money invested for a long time in order to ensure that it increases in value. This means that you need to invest money that you can afford to go without for significant period of time, meaning years, possibly decades.
With all investments there are risks and Etrade is no exception. There is a chance that your investment will decrease in value significantly and you could even lose all of your money, if not more than you originally invested. There are ways are minimising the risk; by investing in something which is less risky. The more risky investments tend to have a bigger chance of making a lot of money for you. If you want something less risky to invest in, then you may not get such a good return on your investment. The amount of risk that you are prepared to take is very personal. You will need to decide on how much you value the money, whether you want to get all or most of it back or whether you are happy to risk losing it to see whether you can get a higher potential gain. It is rather a gamble, although by doing a lot of research you can make it a more calculated risk. A financial advisor may also be able to help you with this decision.
It is important to realise that eTrade, like other financial companies will have charges. You need to be aware of how much these will be and how you can make sure that you are getting good value for money. If they charge per transaction, then you will need to think hard about those transactions and make sure that they are worthwhile. There may be a monthly charge for holding your funds and if this is the case, you will need to make sure that you are making more than the charge with your investment, so that you are still making a profit. Just make sure that you are completely aware of how the charges work for the specific product that you are looking to invest in. calculate what the charge will be over a certain term and then estimate how much money you think you will make with your investment for that term. You will not know for sure, but you can use estimated figures or past performance figures to make an educated guess. Then you will be able to calculate whether it is worth going with this specific product and company.