What Is Online Share Trading?

Nothing can be an easier way to define online share trading than as a process by which investors and traders can buy and sell securities over the internet platform. In the early 90's, when the internet touched upon every sphere of life and brought in a dramatic change, share trading had not been left alone. With the application of advanced online tools and technology, share broking industry has achieved a new horizon by facilitating the investors to trade online and have access to their accounts around the clock. Many premium brokerage firms have also made a strong presence online and relentlessly trying to persuade their clients for buying and selling equities through the internet by offering a plethora of online stock trading services and facilities.

How To Trade Online?

  • open a demat account

Open a Demat Account

First thing first, open a demat account to buy and sell equities on the internet.

  • Learn The Stock Market Basics

Learn The Stock Market Basics

The stock market functions on the basis of demand and supply. So, learn all the nitty-gritty's of the stock market and get familiar with its parlance. Go through the stock market news, books and articles to keep you updated.

  • draft a plan

Draft a Plan

Before you start investing, plan through all the strategies that you will follow while online share trading. Decide in advance how much you would like to invest in a month and set limits on the loss you can afford to bear.

  • choose an online broker

Choose an Online Broker

A broker can make the difference between your success and failure. So, be careful while choosing an online broker. Either you can ask your friends for reference or can do your own research. Go through the details of the companies like pricing and the available investment choices to ensure that you select the best online trading platform which is able to meet all your requirements.

Things To Consider When Choosing An Online Broker

Pay attention to the fees: Find out the initial deposit and monthly fees of the online share trading company for opening an account and trading through them. Remember, many premium brokerage firms do not charge any monthly or annual fees for the services they provide. Try to work with such companies. Also, make sure that they do not charge inactive fees on the occasion of you being not a very regular trader.

Check the credibility: Check the background of the company and analyze their business ethics and structure in order to ensure the credibility. You can ask your friends and family members too if they happen to know the reputation of the company.

Easy navigation: Visit the website of the broker and check the navigation. Make sure it is easy to use and navigate from one page to another. Also, check the site speed by visiting it at regular intervals.

Availability on different devices: Make sure that the broker you choose facilitates you to trade on all the devices - laptop, tab, and mobile.

Advanced Desktop Trading Platform: Make sure that the trading platform you choose provides with an advanced desktop trading platform, where you can have an access to charting, scripting, and analysis.

Multiple segments and multiple exchanges: Ensure that you can have an access to multiple exchanges like NSE and BSE on one platform.

After market order: While choosing an online broker, make sure that the broking company offers you the facility of 'after market order' in order to enable you to make transaction even after the market closes down.

Option Calculator: Almost all premium brokerage firms offer option calculator to calculate the price, stock options, and implied volatility of the current market value.

Fund transfer using payment gateway: Remember, the best online trading platform always has an online payment gateway so that you can transfer fund directly through them.

Advisory services: The broking company should offer you advisory online trading services and facilities and research calls on the platform in order to help you to trade efficiently.

Tips For Online Trading

Choose trading style carefully: While day trading requires you to sit in front of the computer for hours, longer term trading does not need much of your attention. As a rule, shorter the term, the more intense is the trading. Hence, choose your trading style carefully, keeping your lifestyle in mind.

Select a broker in matching to your trading style: Your trading type will determine the kind of broking services you will hire. While day trading needs high speed direct access technology, short-term daily, weekly and monthly trading requires less sophisticated technology. Therefore, day trading involves higher fees and costs in comparison to other kinds of trading. Create an online share trading platform while keeping this point in mind.

Keep a close eye on the demand and supply: Look for scenarios when demand and supply are drastically imbalanced. Use these as your entry point.

Be patient and disciplined: Be patient and do not let your judgment go against your desire and greed. Also, set a trading plan and stick to it. Impulsive behavior can indeed lead you to a failure.