Before the advent of the internet and in particular high-speed broadband, traders and investors had to depend on stock market brokers to place trade orders of stocks, commodities, and derivative products. The delay in getting through to the broker due to his landline or mobile being busy, occasional misunderstanding of what is being communicated often led to lost opportunities and sometimes erroneous trade orders getting placed.
Online share trading has put the power into your hands Today, the access to high-speed internet and in particular information related to market movements has made the process of stock trading a transparent and easy one. You can do onlinetrading of shares if you have broadband internet, an online share trading account with your broker, a demat account, trading software and money in your account. Online trading India volumes have been registering substantial increases over the years as more and more people are gaining exposure to its ease and convenience. The advantages of being able to study market movements through technical analysis software and quick access to world market developments are enabling traders and investors to take informed decisions on their own and without the need to depend on brokers for specific stock information. When you open the trading account with your broker, you will be given access to the trading software, and there will also be a relationship manager allotted to you. It is beneficial to pay heed to the trading ideas suggested by your relationship manager in the initial phase so that you become acclimatized to the software and also to the process of online trading. Online trading account – Use it with caution Having mentioned the above advantages of online share trading, it is essential also to talk about the possible negative exposure traders can suffer. Lack of mental discipline or inability to stick to stop loss positions and over-leveraging of positions can quickly lead to huge monetary losses. The ease with which you can place orders can also become the Achilles heel as traders become over enthusiastic and optimistic about their trading positions. If used with discretion and if you can take decisions based on technical analysis of specific stocks or indices, online trading can become a profitable means of earning income. You can also use your trading account to invest in other asset classes like mutual funds, government securities, commodities.
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September 2017
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