Hedge funds are unregulated investment funds created to generate superior returns for their investors. The typical hedge fund investor is a high net worth individual looking for alternatives to mutual funds. Hedge funs can invests in various asset classes including bonds, currencies, derivatives and private companies. Depending on the investor's risk tolerance, a hedge fund can
be aggressively leveraged to maximize returns.

Managers of hedge funds are paid for performance. They will get a percentage of the investment returns that exceed the minimum return the hedge funds promised to their investors. A good hedge fund is one that has an easy to understand investment theme and generates consistent returns in good and bad markets.

Online trading is quick and easy, online investing takes time

With a click of mouse, you can buy and sell stocks from more than 100 online brokers offering executions as low as $5 per transaction. Although online trading saves investors time and money, it does not take the homework out of making investment decisions.

Set your price limits on fast-moving stocks: market orders vs. limit orders

To avoid buying or selling a stock at a price higher or lower than you wanted, you need to place a limit order rather than a market order. A limit order is an order to buy or sell a security at a specific price.

Online trading is not always instantaneous

Investors may find that technological "choke points" can slow or prevent their orders from reaching an online firm.

Know your options for placing a trade if you are unable to access your account online

Most online trading firms offer alternatives for placing trades. These alternatives may include touch-tone telephone trades, faxing your order, or doing it the low-tech way--talking to a broker over the phone.

Don't buy that house -- yet
You've fallen in love for the first time. Your instincts tell you to follow your heart, make a commitment. But would that be wise? After all, it does cost $400,000.

Shrugging off oil prices
Stocks managed a late-session rally Thursday, on a mix of strength in energy and commodity stocks, falling Treasury yields and some old-fashioned short-covering.

Stealing your neighbor's Net
Forty bucks for high-speed Internet access? Not a bad deal. But how does free sound? To a growing number of Internet piggy-backers, it's the sweet sound of pirating their neighbor's wireless network. Most new computers are equipped for wireless Internet access, and more and more people are...