Online Trading

When it comes to investment , each move and each portfolio according to the market conditions and risk bearing capability is stock investment . Buying stocks online is not a new concept . Every person can afford it . Profitable buy is the basic thing that the stock world actually depends on . Once the buy is well thought of , it is positively going to give better returns . Making the decision to buy certain stock is not easy ; however, the following steps may provide you a rough layout to be followed .

Research and Education : Day trading or stock investment is all about keeping alert on the news and having a clear mind , though few people knew about it . It is recommended to get you well educated about the twists and turns of the stock market . Studying past moves and historic analysis may definitely help . Experiences are also a great help . Once you go through thorough research work , brace yourself to get real investment plans .

Get a System work for you : The meaning of system here is to get yourself a broker or brokerage firm through which you can have access to stock exchange . Make a choice , with the amount of the brokerages you want to work with and the facilities you demand . Never count upon the cheapest service as they may not serve you the services that you are in need of . You must always evaluate the worth of services you are demanding .

Decide on the Rules : It is a fact that every market has its own set of rules and notions of trade . You have to work on the buying and selling rules of stock market , watch the market and go for paper trade . Paper trade is the theoretical buying and selling of the stocks that tends you prove your profitability skills before you actually enter to some dine. It gathers you better speculation skills and gets you experience , through theoretical .

Get through the Formalities of the Broker : There is some paperwork that you have to work on to get the real trade . Get yourself signed to the firm registered with one or more stock exchanges . Proceed with the initial deposits that are to be made for trading accounts and get the needed softwares installed to your PC for online trading .

Maintain a Balanced Portfolio : Be prepared for certain setbacks and losses . However , consistency and break-free moves get you to maintain a balanced portfolio that is beneficial in long run . Also , steady trading is considered to be more meaningful rather than flying in the air right from the start . Inexperienced flight may get you nowhere in the long run . Hence , balancing your trading speed you’re your portfolio is considered to be wise .

Seek for all the opportunities including Index Funds : Diversifying your investments is the best way to avoid the unbearable losses . It tends to integrate your risks and thus serves as a benefit . Also, index funds are a good option to invest in . They provide a balanced , low-cost way of investing and have consistent long-term gains . Hence , a wise selection of stock investment option is considered admirable and well thought decision while investing in stocks . Seeking all opportunities provides you a better range of choices .Online trading is gaining popularity at a rapid pace . Number of known and unknown companies , firms and financial institutions are providing online trading facilities , You only need to register yourself with one of it .

Is Trading through Internet Safe ?

The safety of transactions on internet depends on the encryption system used . The better this transaction system , the more difficult it is for any person to hack this site . Internationally , the best system available today is 128-bit encryption . Secondly, you too can ensure the safety of the transaction online . You normally get a secured user id and password , the secrecy of which is to entirely maintained by you . Thirdly , if the transaction system requires no manual intervention you further improve the safety in the transaction . Among Indians sites , very few are fully integrated online trading sites . This enables the elimination of the possibility of any manual intervention , which means orders are directly sent to the stock exchange ensuring that you get the best and the right price .

What about the Security of My Money , Demat Shares and Transaction Documents ?

In systems where the broking , banking and demat accounts are completely integrated , your money remains in your own bank account , and does not get transferred to the broker’s pool account. The experience of trading through Internet depends a great deal on the type of product offered by the site . Say for example , one of the issues bothering you may be getting tired of the paperwork involved after every trade , in writing cheques . You would open then seek a system that eliminates these processes . In online trading sites the greater the back-end integration of the system , the greater the amount of work the sites do for you , therefore greater the convenience available to you .
In big financial institutions your broking account , bank account and the Demat account are linkee electronically . So when you punch in a buy or a sell order , the system checks the funds / shares availability and automatically credits /debits the account once the order is executed by the exchange .

But I am not comfortable with Internet , or with Finance , how can Online Trading be easy for me ?

Contrary to common perceptions , trading through Internet does not require any expertise in working on the computer , or any special financial skills . You could try the demo of online trading sites to find out why others like you , with little or no knowledge about Internet or finance , have switched on to online trading . Or you could attend the demonstrations sessions held by such websites in your city .

Is Trading through Internet a costly affair ?

The convenience provided by online trading is even then worth the costs involved . And online trading sites are not that costly . For example , a trader can trade shares on margin at rates as low as 0.10% and if one wishes to trade in cash , then rates applicable are as low as 0.4% However , it is important to compare various online trading sites on brokerage rates , inclusive of all sub-charges .


Discount stockbrokers allow you the flexibility of creating your own portfolio , sharing your money between mutual funds , bonds, stocks options and exchange traded funds . Most of the companies that are into discount brokering . allow options of banking like checking and savings account , credit cards certificate of deposits and mortgages and money markets accounts . Such companies offer you options of the best online trading .