But it’s not just politics that makes offshore investing risky without proper foresight. If American dollar gets stronger against country you’ve invested in, your investments will suddenly be worth less. You should look at country’s economic infrastructure, assure yourself that it’s in pretty good shape, and only then make a decision.

Despite all pitfalls, there is also some serious money to be made with offshore investing. For instance, because of cheaper labor, an Indian engineer or software designer’s employment costs are about 40% those of an equivalently-skilled American engineer or designer. And companies that run offshore are better suited to take advantage of rising demands of emerging economies; they’re there, they understand people, and they are already recognized.

Investing offshore often can make a real impact on lives of other people. Bringing investment capital to a third-world country gives it a sudden injection of cash, of employment for people who want to work, and of secondary businesses that spring up to supply offshore business as well as its employees. Sometimes this jumpstart is all an economy needs to start emerging. Not only is investing overseas a great way to grow your money (albeit risky), but when done properly it also benefits people who you will never meet, but who will be grateful to you forever for just giving them a chance.

When you start investing online, learn how tools can work for you, particularly order options. For instance, market orders let you automatically buy or sell stock at current market price. Stop-loss orders sell stock when it drops below a preset price, allowing you to minimize losses when you can’t watch your stocks.

You should educate yourself about all aspects of investing as well as businesses in which you’re invested. Investing online does not excuse you from understanding market. If you’re dabbling in market, you should remember that there are tens of thousands of people who are seriously investing, learning all tricks, and reading every word of Wall Street Journal. By choosing to not educate yourself, you’re changing what could be educated online trading into a gamble, and a gamble that leaves you at a disadvantage. It’s like playing poker, betting every time, and just hoping your cards come up.

Investing online is not a surefire way to get rich. Most day traders lose money. You should remember that your stocks may not sell anywhere near time you put it up for sale; it could not sell for hours, during which price may drop or rise. You can use limit orders to minimize some of this uncertainty. And even though you can access your online account anytime you want, your trades will not execute until market is open.

You should also avoid rapid buys and sells, following short-term vagaries of your stocks. You’ve noticed how other lane in traffic is always moving a little faster – no matter what lane you’re in? Scientists studying this phenomenon – seriously – have determined that this is a matter of perception. The stock market does same thing to you. When you sell and buy whenever you see a stock rising and falling, you’re putting yourself in slow lane almost every time. It’s better to look at long-term trends of a stock when investing online – or offline.