Information and guide on Online Share trading

Information and guide on Online Share trading

What is Online share Trading ?
Trading with the help of computer having internet connection and online trading account is called Online Share Trading. Basically people use online share trading who want to trade themselves.
Essential of Online Trading -
¨ Online trading account - You have to open an online trading account with any of the bank or financial trading system like
ICICIdirect.com, 5paisa.com, Sharekhan.com etc. Their will be nominal annual charges. These charges vary from bank
to bank but should not be more than Rs.1000 annually.
¨ A computer with internet connection or can do trading in internet cafe.
¨ After successfully opening the online account you will receive the username and password with the help of which you
can login in online trading system and trade yourself.
¨ The trading system executive (with whom you opened trading account) will help you initially about how to use the
online trading system.
¨ Once you get familiar with the system then you can trade yourself at your home or in the internet cafe.
¨ Nowadays you can get internet enabled on your cell (which is called GPRS) whose speed will be sufficient to do trading
and also the charges of GPRS are very nominal.

Advantages of Online Trading

¨ No need to depend on any broker or anybody else to place the order or to square off the order. In short you are the boss
of yourself to do trading of shares.
¨ Its reliable, convenient and you can take your own decisions yourself by actual selling or analyzing the market on the
computer screen instead of calling broker all the time and getting news about the market.
¨ Its not possible or practical for a broker to update you about each and every news about the market or any news which
will influence or affect the share market. Because he may be having many other customers like you and even if he
updates you by that time the news have been affected the concerned sector or share. So if you are doing online trading
yourself, then you may save yourself from big disaster. You will get news and updates on various websites and also on
your online trading system and most of the information will be free of cost. “Always remember share market always get
influences (or affected) by the appropriate news. So get updated or be in touch with news all the time. This will benefit
you always.
¨ By doing online trading yourself, you can see and judge where market (or your share) is heading by seeing different
graphs online yourself, which is not possible if you’re trading through broker. Some online trading systems have graphs
integrated in their system, so your job is to just add those graphs and check the status of current market (or share)
(graphs will be discussed later). And depending on your analysis you can take steps towards your successfully trading.
(How to analyze graphs will be mentioned later).
¨ All your transactions and related documents can be seen online and can also be downloaded to your PC without
depending on your broker. You can also check the status of your amount on daily basis through you online trading
system.

Disadvantages of Online Trading

¨ In online trading system you may face problem of disconnection to internet due to which you will not be able to login to
your online trading system and hence you can’t do trading yourself. At such critical times you have to call trading
system executive and do trading or square off your transactions.
¨ If 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.