Investor Profile

After experimenting with a number of "virtual" strategies, Tracy and Tom opened a real online account. One of the first things Tracy encountered was the need for timely and reliable research but she often found it pricey. Through diligence, however, she uncovered many free resources. She says, "Research is a critical thing in investing, but don't pay anyone for it. It's all out there and all free if you know where to look. You may get notification of [SEC] Edgar filings or insider trading about 24 hours earlier if you subscribe to a pay service, but most new investors don't have the kind of capital for the advance notice to be of much benefit to them."

A Strategy Is Born

With a little luck, some hard-earned knowledge, and research, Tracy zeroed-in on an IPO (initial public offering) strategy. She started with a purchase of Priceline and hasn't looked back since. The money she has made from her IPO purchases has been used to fund other investments. And along the way, she's learned a valuable lesson: ignore hindsight. "If you're going to trade in the markets, you can't allow yourself the luxury of hindsight. Sure, we wish we had been wise enough to hold Priceline and sell it at $150. But we made our decision when the market dipped and dropped and opted for the quick return."