Online Share Trading: Bringing The Stock Market To Your Desktop
Today we have scores of people from different professions who swear by online trading
. Not only is online share trading a great way to earn some extra income, but some people also get a thrill from trying to speculate the stock market.
For those of you who are not familiar with the online share trading process, we will explain it as well as give you some tips on how you can start trading online.
What is online share trading all about?
In the old days, share trading would take place at the stock exchange. It involved the exchange of share certificates and lots of paperwork. However, with the dematerialisation of shares, the shares are now held in electronic form. Today its possible to trade in shares without having to go to the stock markets. One can trade in shares that is, place an order to buy or sell shares either through a broker or they can do it themselves through online share trading portals.
The advantage of online share trading is that you need not handle papers or certificates as the transaction takes place online and the shares are held electronically. You can trade in shares from anywhere and at anytime. All you need to do is to place an order to buy or sell shares at a particular value.
What are the requirements for online share trading?
In order to trade in shares online, you need to sign up with a broker who offers an online trading platform. You will have to create a trading and Demat account and link it to a bank account. There are a number of players who offer all these under one roof. To trade online, you will need an internet connection.
What are the benefits of online share trading?
The ease of buying and selling shares is the greatest benefit of online trading. You can trade from anywhere. All you need is an internet connection.
The online brokerage will generate a statement for all your transactions providing you a confirmation of your transactions.
The dividends and bonus shares declared get credited to your account directly.
You can start trading with small amounts of money.
What are the dos and donts of online share trading?
Have a trading strategy in mind and try to diversify your investments as far as possible.
Do not take rash decisions on stocks. Analyze the companies you intend to invest in and check their past track record.
Stay updated on the stocks you hold in your portfolio.