Online Share Trading Tips

Online share trading is a recently created platform available to the retail investor to buy and sell shares by using the computer and an Internet connection. Online trading has made the buying and selling of stocks and other financial securities so easy that only by a single click of the mouse, you have either have bought or sold off your shares all from the comfort of your home, office or local cafe.

Online share trading process, though very easy to implement is unfortunately a very tricky process to earn money. It is very important to have knowledge on the stocks you trade in before you start buying and selling the shares online by yourself.

Following are a few paragraphs which will put focus on the online trading process, its benefits, do's and don'ts.

How to go about Online Share Trading?

Online share trading as discussed earlier is the trading platform which works on Internet connection. To begin Online trading all you need to have is a brokerage account, a PC connected to Internet services and appropriate trading software which is normally offered by your broker.

As the old adage says "Easier said than done" is also the case in finding a good broker to help you in online trading. In order to get a good stock broker, you first need to review and analyse all the brokerage institutions, check the options they provide, the brokerage charges and the time taken by them to process your orders. The last factor is the most important one as it determines the price at which the shares are to be bought and sold. As the stock market is very volatile, the price of stocks change from day to day basis and if your order is not processed the same day, you might end up paying more than actually quoted by you or you may end up in loss if the shares are sold at a lower price.

Also the trading platform and the internet connection are important factors. The trading platform offered should be very easy to understand, perform trading tasks and place the orders. If the software itself will be difficult to understand and operate, you might lose your hard earned money by opting for the task operation which you are not clear about.

Internet connection should be speedy enough so that it the trading software immediately captures the market fluctuations and provide you the appropriate data on time. If the speed of the internet connection itself is slow, the data cannot be provided on time and thus you can miss a great opportunity.

All these factors need to be analysed before you get registered with a particular stock broker. Once satisfied with the broker and finished with all the infrastructural requirements you can proceed with broker account opening formalities a get yourself registered with the preferred broker.

BENEFITS OF ONLINE SHARE TRADING:

Online share trading has gained popularity in the recent past due to the various advantages it has offered over traditional and telephonic dealings

• The major benefit of online trading is the ease it offers in buying and selling shares. Every time you need to make a transaction, you need not visit you broker. All you need to do is log in to your account and make hassle free transactions.
• These online trading platforms generate online contract notes/trade statement for your transactions providing you confirmation on the transaction processing.
• The dividends and the bonus declared on the stocks you hold are directly deposited in to your account.

DO'S AND DON'TS IN ONLINE STOCK TRADING:

As Online share trading is very easy, it will always lure you to make quick decisions to earn extra income. Thus it is always recommended to follow some precautionary measures before you end up making a wrong transaction and loose all your hard earned money.

• Formulate a trading strategy. As far as possible try to diversify your investment.
• Do not rush to quick decisions on stocks. Analyse the stocks you intend to buy, check their current and past performance and then make a careful decision.
• Always keep yourself updated on the stocks you hold in your portfolio.