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11 Oct, 2018

Online share trading is a boon for retail traders

Stock trading ifdone the right way can help one in earning money. It is a business which involves many ups and downs and one has to know the tricks to sail through it. Online trading has now made investments in shares very easy and within everyone’s reach. Investing in shares will lead to gradual increment in the income. The various steps in online trading have been explained below-

What exactly is Online Trading

Online trading is basically trading of the shares, equities, mutual funds and other financial derivatives and instruments through an online marketplace. There are various websites online trading platforms which provide this facility.

Steps in Online trading-

Opening a Demat and Trading Account:

The first step in online trading is to open an account online with an online firm. A demat and trading account is required to begin trading online. Demat account is the storehouse of all the shares that you buy and trading account is the one through which all the transactions take places. One should search for an online platform where these accounts can be opened without much frill. Beginners should carefully select a broker who is well recognised and registered under SEBI.

The online investing account should be customer friendly, safe, credible. One should go for an account where the transactions are speedy and without any glitches.

 

Learning the basics Stock Market:

Stock market is all about buying and selling stocks and bonds as per their demand in the market. One should get familiar with the basic terminology of this market and read the business section of the leading newspapers daily. One should be well updated about all that is happening in the stock market financially. In the beginning one can start online trading through a simulator as it would help in gaining the much needed confidence.

Draw a plan:

Decide in the beginning how much you’re ready to invest in a particular company. One should be clear about the amount of loss one is ready to bear and then invest accordingly. With patience, persistence, careful planning and a bit of luck one can achieve success in the stock market.

 

Online versus offline trading

 

Online trading as compared to the offline platforms, gives the user freedom to trade in stocks through various websites directly via mobiles, desktops, laptops etc. In the offline mode, a broker is hired to carry out the deals via personal meetings.

 

With internet now within the reach of each and every individual, online trading is now a boom as it saves a lot of overhead wrt to amount/commissions charged by a broker. Thus a lot of money is saved by eliminating middlemen and one becomes In charge of their own investments. It is also quick as one has to take decisions on their own thus saving precious time.

 

Thus for retail investors, online trading is proving to be a blessing. An individual can trade on their own terms and save resources.