Know About Online Trading
HOW TO DO ONLINE TRADING?
Before the invention of internet there was no option for the investors except the investment in physical form with a lot of hassle. The investors had to visit the brokers office, and the broker would trade on your behalf.
With online trading things have become easier in investing, an investor can invest anywhere and at any time through any electronic gadget and trade. In online trading a trader earns more profit because the amount of brokerage fees is comparatively less.
Online Trading vs. Offline Trading
- An investor can trade according to his wishes without the help of broker. All offline trading are required to be done by the broker, traders in offline trading are completely dependent on the brokers.
- There is a single platform in online trading to trade and research for shares and securities. In offline trading an investor needs to do research separately and cannot be dependent on the broker fully.
- You can access the detailed information about the company through different trading apps and websites. In offline trading brokers word of mouth recommendations need to be followed.
- An investor could trade from anywhere, in offline trading the trader needs to visit the brokers office and make the transactions.
- The brokerage fees is less in online trading as compared to offline trading.
STEPS OF ONLINE TRADING
- An investor needs to open a Demat account. Demat account is to be opened with the broker so, an investor needs to find a good broker and open the account. The investor needs to ensure that the brokerage house is registered with SEBI.
- It is important for an investor to understand the market, for that it is good if the investors does some short term courses on stock markets for a better understanding to predict the market and invest in the right share.
- Once the demat or trading account is opened, an investor can log in to the account and experience the trading process. Once the account is created an investor may add money from the bank account and start trading.
- An investor starts trading in the live market, investor can check the historical prices, charts, in depth details of the company.
- To start trading an investor needs to plan trading strategies, so plan your goals, investment budget and then set investment strategies.
Points to Note – ONLINE TRADING
- Check whether stockbroker has online trading license or not.
- Do not trade from a shared internet connection or laptop.
- Make sure your system is updated with anti virus application.
- Take some online trading course to learn the basics of stock market.
ADVANTAGES-ONLINE TRADING
- It is simple and effective.
- Investors who are very enthusiast could trade on their own.
- After placing order for online trading an investor may track the order online.
- The online trading is errorless to a great extent.
- There are also technical analysis tools on trading platforms which is a boon for the daily traders
- It is paperless transactions so the chance of miscommunication is very less.
- An investor has full control over his investments when trading online.
- Less brokerage fees.
CONCLUSION
If you are a newbie in the market or a pro, online trading is a blessing in disguise.
The time and money you put in trading stocks online can bring you profit if you thoroughly analyze the market and then invest. Investments done in a haste to grab profit can lead to great losses. It is important to take the advice from eminent traders, brokers, analysts when you trade online.
Check also whether the online broker you choose is experienced, an investor needs to check whether it is a full service or a discount broker. Finally as an investor you need to check how much amount you can invest. These trading platforms have opened a whole new world of opportunities and possibilities for traders and investors.
So to conclude the basic requirements for online trading are:
Stock broker, saving account, Demat and trading account and most importantly electronic gadget and internet connection.