Online Stock Trading

How to Trade Online

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In trading online, one should know the rules, regulations, advantages and disadvantages very well. Online trading is not easy as it sounds. You need to have the proper knowledge, and should be careful while investing the money. It is very essential and vital to know how to trade online before entering in this trade.

Online trading is based on buying and selling stocks. When you choose a certain website for your trading account, you should search for information about a company you are going to stick upon, and make sure that it has a trustworthy reputation and reliable standard in the market. There are many online trading platforms offered by various brokers, but you should only choose one, after finding how worth they are.

How to Trade Online The procedure of trading online is simple and straight forward. Investors don’t have to be a broker or non-refundable riches to do it. The investors place the orders on a broker’s site directly. The consulted brokers accomplish the orders given by the investors on the stock exchange and make the payment on behalf of the clients. The price of the shares varies according to the economic conditions and the performance of the companies and investors approaches. When a company recommends its offer for the sale for the public, it is known as ‘Initial Public Offering’ or ‘Going public.’

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The brokers also provide their clients with news, charts and the market data through the online medium or by phone. Brokers can buy or sell stocks through exchange. In return, they charge their usage fees of the software and the commission of trading for their services.

While trading online one should dwell on following tips to get hit in the trade:

Always set edge orders, while trading of stocks. Stay away from overtrading. Does not trade abundance of stocks at once and never judge the results on daily ups and downs. Scrutinize the long term tendencies. Never trade and believe the rumors.

Online trading is the best means to earn a living in the comfort of your work place or home. It is also the best option to supplement income on regular basis.

When a company makes profit, it shares the profit with its stock holders by issuing a dividend.

However, before gambling into online trading, an investor should cautiously make inquiries on the menaces bracket together with it and get ready for them.

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Online Brokers

Online brokers play an important role in online trading. They work as an agent and a guide to help the investors in online trading.

There are many brokers who do a phenomenal job of guarding their clients’ interests. There are also many discount broker that provide remarkable services for a reasonable price. Online brokers are quite different from usual brokers. It’s up to you to pick the broker that meets your needs and requirements. Let us discuss the main function of online brokers:

  • Online brokers are usually an agent who helps the clients in transactions. They disseminate real-time information to investors.
  • Fees and commissions submitted to online brokers by the investors, are less expensive that not only saves your time but is convenient for the investors.
  • Online brokers allow the investors to execute the trade, flexibility of money and to gain news and research regarding the stocks and share market.
  • Online brokers provide their customers with much more limited assistance.

Online Brokers There are many online brokers you will find from here and there, but choosing a suitable is quite difficult. They will charge less commission, and in return they give you little less for it. It is important for you to check the past and present performance of the broker, and always choose the broker who can start your trade with a smaller and minimum amount. Try to avoid such brokers who do not give you the direct and inapt information.

In all honesty, is not that simple, because the brokers and broker commissions are constantly changing, and investors personally need success in online trading. It can be very different from that of another person requires.

Some online brokers are very genuine as they offer good service, and an investor can be sure with their cash as their opened stock trades are safe, as they will be handled correctly. They can interact to the traders whenever they want and they clarify the doubts also. This manner establishes the trust to the broker, and trading becomes a safe trade with the help of the brokers. Many online brokers provides direct access trade execution and clearing services to individuals, advisors, institutions, and brokers at deep discount commissions.

Lack of information is also a reason of loss in the online trading, if the broker is not helpful and co-operative. It is always advisory to go with the best online broker who has not only cheaper services, but one that can lead to good relations in the long term.

How to Open an Online Trading Account

The first step to trade online is to open an online trading account, which is also called ‘Demat Account’. It is one of the most important and essential step for trading online. For going forward, an investor needs a broker who has a good reputation in market, and who helps the investor to open an account conveniently. Online trade account makes trading easy and suitable among the traders for easy transaction.


Online Trading Account When an investor has decided on which online broker he/she has to open their trading account, the thing you need is online application form. These forms are available in the banks or the firms dealing with the online trading.

Whereas, sometimes you also need a printed version of online application form from the internet and have to send a hard copy to the broker, to make it confirm. It can easily available on internet online trading site. You can fill the form and the firm themselves will contact you.

The documentation, one require to open an online trading account may vary according to your reputation with the institution. Along with the documentation and form, the photograph of the applicant, the proof of identity/residence/date of birth is also required. You just have to deposit the photocopies of the documents, whereas original is only needed for verification.


The next step is paying the fees to the broker. When you open an online trading account, some online brokers will charge you an introductory new member fee. They also offer you very attractive ad genuine joining promotions. But, it is advisable for the investor to not depend his/her whole decision on whether to open an online trading account on this phase alone. Broker fees should only be paid, if he is genuine and holds a good reputation in market.


Another step, while opening a trading account is how to deposit your money with the broker for joining. In some cases you can make your deposit via credit card, in others you’ll need to make a physical payment into a bank account. Once you have completed the online application form, and deposited your money, you can start with your online trading as soon as possible.

Opening an online trading account is the major step and an entry for the investor/trader to join the trading online. They only have to know the procedure and the standing of the firm before opening an online trading account.

Dos and Don’ts of Online Trading

Online trading has become a leading light these days. If you know dos and don’ts, for sure an investor can become successful in online trading. There are many trading rules, and on time it will add some, and plunge some, till a system is always working well for the traders. Here are the dos and don’ts, investor must follow and remember while trading online.


  • Dos and Don’ts of Online Trading The first step to enter online trading is to open an online account with the help of broker. There are ample of sites available on the web, but an investor should consider the most popular and authentic one.
  • The most important step, one should do while investing in share market. One should be clear regarding the return they expect from a particular time period.
  • Investor can clear their doubts by consulting an online financial expert or broker and discuss the issues with them. They can give the best possible alternative for the online trading.
  • Market knowledge is very essential to gain success in online trading. Browsing the related sites, read the stuff, articles and blogs to get the current information regarding the market. It will help investors to get familiar with the market, and they can trade easily.
  • Choosing the best broker can help you in buying and selling the stocks, is not an easy task. As broker is the person who does all kinds of online dealings and it is very important for the investors to select the best online broker.


  • Investors should avoid unregistered brokers, as most of them are frauds and scam. Always investigate about the broker from the different sources.
  • The market is unpredictable in nature, so take time while entering into it. Do a complete analysis of market before selling, buying or investing in the stocks. Always use scrutiny tools that are available on the company website and then examine the market in the best potential manner.
  • Buy the share as soon as possible when you are gaining profit. Do not think that the share will increase more, and you will gain more profit. As we mentioned above ‘The market is unpredictable in nature.’
  • Don’t forget to log out after you done the online trading, and keep on changing your password from time to time.

If you follow these dos and don’ts carefully and comprehensively, for sure you will gain profit and achieve success in online trading.

Disadvantage of Online Trading

Online Trading is very expedient and advantageous because most online stock trading platforms offers informative tools and coaches you with smart investing. When it comes to online trading, it has both advantages as well as disadvantages.

As we all know, internet is an open medium which still entails risk to online cash dealings. Some online trades have fear of leaking the confidential matter during the internet trade, and are also unenthusiastic to assist heavy cash transaction on the internet. The confidentiality matter and leak of secret information also greatly worry the business originators.

Online trading has been a big enhance for the stock market. Online traders fall sort of constant support and submission. In spite of the fact that there are certain disadvantages associated with online trading, yet if one precedes with necessary safety measures, it is a useful tool in operating your business.

Here are the main disadvantages of online trading, one should think about when trading online:

  • Disadvantage of Online Trading The first foremost disadvantage of online trading is the chances of losing the trade. If the mechanism or system fails due to the less speed of internet connection, the investor can suffer a big failure.
  • The other disadvantage is regarding the fees of the online brokers. As some online brokers charge apathy fees from traders. If you trust them without enquiring about them, it will prove to be a big loss for you.
  • There is a greater risk if trades are done extensively on margin, monthly software usage fees.
  • The time sensitivity in nature leads to the result that most option expires worthless. This implies on every trader of online trading.
  • An investor can suffer from a big loss, if they don’t have the appropriate knowledge of how to buy and sell the shares.
  • The disadvantage side of online stock trading is financial risk. Though there have been other negative elements noted in trading forums, the one thing that one should be aware of is the risk part that online stock trading provides.
  • It may face other problems such as electricity cut-off, PC problem etc during online trading then immediately you have to contact your trading system executive and place orders or do trading.

The key to be successful in online stock trading is steady learning. Stay updated with the developments to be able to make wise decisions and mitigate their risks.

Advantages of Online Trading

Online trading have always attracted dealers who incline towards investments with higher returns. Although threat aspect is high, the returns are relatively a lot more than other investment opportunities. As the investment technology is advance and new, investor can put orders to purchase and sell the stocks in the comfort of his home and workplace.

Trading online is the best thing to do when you have invested a lot of money because you need to have the right information in order to be able to trade properly. There are so many advantages of online trading let us have a look:

Advantages of Online Trading You can buy or sell the shares anytime, according to your convenience. It is far better than long term investment that includes property and gold business. You can make changes any time in online trading. You can always log in to your account anytime and view how your shares are fairing in the market anytime you want. This enables you to be aware of the performance of your investment instead of having to wait for reports in the mail that may not come as often as you would like.

If you are associated with a firm, then they will also give you the details of all your binary options and the rates of shares updates on all the status of the market within an hour. You are also free to make your own decisions about buying or selling stocks instead of relying on your broker to execute a certain trade you might be interested in.

When you do transactions online, all it takes to be able to buy or sell stocks is a single click of the mouse. Through this, a quicker exchange can be made, which may also ensure faster earnings.

The stock market is not for the weak hearted. There is definite amount of risk involved while dealing with any venture but the stock market is quite different. Both the profit and loss is unpredictable. But if you have ample of knowledge, you will definitely avoid loss to be a big extend.

With the many benefits of online stock trading, buying or selling the stocks through the Internet can certainly be a great way to participate in the stock market. Keeping in view the advantages and disadvantages, only then one should start the online trading. As knowledge about the trade is a key factor to achieve success.

Basic of Online Trading

Who don’t like to earn money sitting at home? Of course, we all do. These days online trading has become one of the convenient means of earning money direct sitting from home or office.

It is basically a stock trading system based on internet, where shareholders trade share through a website (offered by a broker). Before starting the online trading, one should know its basics and essentials. Also need to be patient, develop a good system and understand the market.

Basic of Online Trading Let us have a look at the basics of online trading:

The primary things an investor should require before starting online trading are- knowledge of computer, fast internet connection, money to endow and online trading account. In addition, the investor will also need to know how to buy and sell the stock and the whole investment plan.


If an investor wants to buy/sell stocks in the stock market, he has to first place order with a broker or can make it themselves using online trading systems. When the order of the stocks is corresponds to the exchange, either NSE {National Stock Exchange} or BSE {Bombay Stock Exchange, The order stays in the queue of exchange and gets executed if the price of that stock comes to that value. The stocks purchased will be sent to the investor, either in physical or demat format.


Web is full of big and small stock brokers that offer low fees. But choosing a genuine is quite a difficult task. Select a broker who has good reputation and capability to deliver all the services that an investor expected.


  • Do not share your password with anyone and change it frequently.
  • Always understand the online trading software, before trading professionally.
  • Get a training of usage of software from share market expert.
  • Get ready for anytime’s profit and loss.
  • Always log out after you have finished trading.
  • Don’t place orders from cyber café or someone’s PC.
  • Do not click on ‘Remember Me’ option.
  • Do not open unknown files from the person you don’t know.

Once a trader have opened the account with an online stock broker, deposited money with them, picked the stock they want to buy, and the method of trading they are going to accomplish, all they then need to do is to press the mouse a few times and the buy/sell order for that stock is complete.

Online trading is much like gambling: you win some, you lose some. It is still in a growing phase and has lot of scope in future.

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