ONLINE TRADING Do’s and Don’ts
March 10th, 2010
ONLINE TRADING – Do’s and Don’ts
Trading online has become very popular in today’s time when you just need a trading account and after that you can trade comfortably while sitting at your home. Apart from comfort of trade it provides various facilities like:
• Ease of buying and selling of shares.
• Online receipt of contract notes/ trade statement for the transactions.
• Direct deposits of dividends/ bonus amount etc to account.
• Various trading tools for ease of making investment decision.
One click of mouse button is of ample importance while trading online because sometimes it is what that draws a line between your winning or loosing the game. Trading online is very interesting but you have to be a bit careful as well. The process of trading is very easy but making money is a bit tricky. All you need is a trading account and a little bit of caution to operate the same. Below are some do’s and don’ts while trading online:
Prices change at the blink of eye and the transactions are not always in real time. Moreover the speed of your internet might cause delay. So always make sure not to change your decision until the last moment. Take time examining the stock and make decision ahead of time so that you don’t loose while in panic.
An important feature of stock markets is volatility. So if you don’t keep a close eye on how your stocks move while placing an order, you might land up in losses.
Online trading is a matter of trust between you and your broker because there is no in-person contact. But you can’t leave everything on trust. Make sure your broker provides you detailed email statements and contract notes of executed trades.
Online trading provides facility to place limit orders. If you don’t have sufficient time to keep track of the stock prices, fix up a buy/sell price based on your judgement and go for limit orders. Moreover limit orders help you take ample advantage of volatile session during the day.
In addition to the brokerage rate being paid, prudent investor should always be well aware of the various Fees and commissions charged by the broker for various services offered like Mobile services, buy sell alerts, reporting, chart and other tools to facilitate easy trade as they really affect your net earnings.
For novice traders, it’s a suggestion to always trade with stop losses. Set your stop loss to level to avoid the risks associated.
Even though chances of default by a good brokerage firm are nil but a smart investor should always keep track of credit/debit of money in their bank accounts or transfer of shares to/from the demat account accordingly for each trade executed because technical reasons might lead to discrepancy which cannot be avoided.
Prevention is always better than cure. Security is another important factor for online traders. It is advisable always to follow security measures related to passwords and other personal information while login into the websites to eliminate chances of theft of identity and information.
RENUKA KINGER
Categories: Trading Basics, Your Money
renuka mam
plz give details about trading with stop loss.
wat actually is “stop loss”?
I want to get in to stock.but what the first thing that i sould know about getting into staock.
I am new I wish to know about share market business
Hi… I m post graduate in IT field, i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses.
I am new to online trading but i have been trading offline for over a decade now.
I have completed all formalities and wish to start working from home.
I shall be grateful if you could kindly advice the caution for trading online!
Hello Mam,
If we do online trading, is it necessary to keep a broker?
Actually i am new in this field nd wants more information regarding the online trading.
Kindly help
Jitendra
I am new person I wish to know about share market business……which company market share have good value………
Hallo mam….
Interested in share market, want to know minute details regarding share market before starting so if u can help me will be oblidged
Hello mam,i m student of 2nd yer & i m new in dis field, i want 2 start tradin ,so pls tel me d process how 2 begin.and pls also tell me abt d course related to dis field.
thanx…
Hi… i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses.
Hi… I m post graduate in IT field, i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses.
i am a mba student. i want doing my project in share market. pls guide some points
i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses.
hi
pls tel me how should i start trading bcz i m new in this work
initially i want to invest a small amount of money in the
market pls guide me
regards
savitesh
hi i m about to complete my graduation. i have little experience in share market but ended up at loss.
I want to kno how to study the market and when to make decision to buy a particular share?
helo000 i m an architect… i m intrested shares trading i m totally new to this field …. i want fully details about this share business.. so0 there is an institution ….
how to know abt main purchase rate of shares which already we have purchase??
Hi… I m persuing BBA, i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses.
i am a retired person can i understand and do online trading. is it very tricky difficult to understnnd’
Hello,
I’m a new investor & want to start up with a small money..Can u pls advice how to start & which stocks need to look for???
Thakns..
i would like to know that whether we requri a demat a/c for trading ….
and also some info.. of good brokers ..
ply also specify that its good to invest
Hi… i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses
hello maam,
I am a student at present and am interested in investment into the stock market.
I am totally new to this field and need guidance regarding investment and its management….also I would like to know mor about the ‘stop loss’..
hi
i am new to this field… is it safe to trade online in a computer centre…..
kindly give ur tips….
hello mam, i need your suggestion. My father opened a de mat account from a firm. There occured a problem. the identity and the form filled on The time of opening the account had the spelling mistake of my father. Can it be correct. due to this we do not sale our shares. Please help me.
Hi… i am interested in shares trading but i am totally new in this field. i need some details about share markets…
sir, i want tp know about how to trade that u minimise risk and maximise profit. please assost me.
Renuka mam thank you to guide us in a very easy manner but mam i am a little bit confuse to choos the right share and right price to buy or sell a share. Since i am very new in this business and some what affraid with the remurs about the market.mam plz guide me mam.
Hello,
I’m a new investor & want to start up with a small money..Can u pls advice how to start & which stocks need to look for???
sir im very interested to invest in mutual fund. but since i am stranger to this field, i cant do that, please guide me and tell me what should i do at the beginning?
i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses.
Hello sir/mam. I wish to start my own business . But nees to do trade first to get my initial amount. So i wish to start my trade in shares . Im a second year IT student. New to this field. Pls guide me how to join into share trades and how to go ahead. How much shoul i invest initially ?
hi, I am graduate in comp sci , nw i am new in this field i want more information abt share market . I am intersting in online tradding
Dear Renuka Mam,
The information above was very helpful bt i need to know wht are the points that should be considered while selecting the broker ,i mean there are so many brokers in market . What are the idle charges charged by the brokers
Hi maam. i am new in stock market. I’ve opened demat account and doing intraday trading. Can i give order to sell my share if price of my share go down at certain leval to stop loss in trading. In intraday how i know which share to buy in the scrip list. What is stop loss. How sensex affects share price.
Hello sir i am fresher i want to know about stock market and want to buy share bcoz i am very interesting . Plz give me tips. How to buy it .
well I also becoming a new comer in this field so before investing I want to know about online trading and all how should I join and all things.
Hi Sir, i m fresher. I’m a new investor & want to start up with a small money..Can u pls advice how to start & which stocks need to look for??? Please guide me.
Hello mam,
i m student of 2nd yr & i m new in dis field, i want 2 start share trading
so pls tel me d process how 2 begin and abt d course related to dis field.
thank u
hi mam,
i want to start trading in sharemarket,there is some doubt and question.
1. how can i register , is that safe online registation and trading
and internet speed would be effect on trading ?
kindly help
Hi sir, i want to know about shares. i want to more information about share market. How do i invest. plse give me information.
I would like to invest money in stocks, but i am totally new in this field ,please give sufficent information.
hello mam i m new to share market i want 2 knw detail abt it also abt trading online n which companies will be the best options… thanks
Hello sir i am fresher i want to know about stock market and want to buy share bcoz i am very interesting . Plz give me tips. How to buy it
hai sir i would like to do share market business,but iam new in this field,i want to know how to buy and sell shares,and iam interested to do online trading,so plz give me suggestions,and give me some tips.
Hi..
i m novice n first time i m goin for stock market with limited money. plz giive advise as how to start.
Hello Sir/Mam, i want to enter in the sharemarket business but i am totally new in this field. so please guide me where i can get detailed knoweldge about this business.
hi sir, i am congratulated to u sir, keeping good articles on shares, online trading, its very interesting, now i am perusing mba in business school in banglore. i want to be a financial managers.. now i am perusing mba, pogpm,pgcm three degrees i will get in next year. Now i am planing to do ICWAI. sir, please give some guidelines for my bright future thanks u alot
Dear sir i would like to do share market business,but iam new in this field,i want to know how to buy and sell shares,and iam interested to do online trading,so plz give me suggestions,and give me some tips.
Hi sir, i want to know about shares. i want to more information about share market. How do i invest & wat r the process in shre market. plse give me information.
hi….
I am housewife and would like to start earning through internet. I would like to start online trading. But before investing, I need to learn about the market. I would like to know if any course provided on stock market trading.
Please guide me on this.
Thanks&Regards
Dear Sir / Mom,
I finished MBA Current year, then i am interesting in online trading of share market. but i dont know any farmalities about that. so pls be guide to me
Ths & rgs
Hello mam,i m student of 3nd yer & i m new in dis field, i want 2 start tradin ,so pls tel me d process how 2 begin.i have pln to start my future with share market so pls tel abt tis and pls also tell me abt d course related to dis field.
thanx .…plsssssssssssssssssssssssssss.
For Novice traders, it is very important that you keep tracking few selected stocks for some days before you actually start trading. To do so, see the stock related new on websites like http://www.moneycontrol.com, http://www.rediff.com and check out which sectors are going up.
To start with the trading , you need to open up a demat account. Analyze the brokerage rates and decide which brokerage plan is best for you. Once you have a demat account; you can start buying and selling based on your market analysis.
hi sir/mam
i am working in small company i just want to start earning through online trading. before investing so plz let me know about the information.
thanks®ards.
i want to invest in share market,pls suggest thanks
how i can open an dmat acc
Hey iam ashwin i really want to know about the stock
and i want get into that . So what is the procedure to do that
let me know pls. I am just wait for month’s to get into that .
Please let me know the stock and share procedures and one more thing we requred any banking details or just like that we can know the thing. pls let me know.
Hi mam, I am new to this share market feild, and I would like to know how I can open a trade account ? thnkz
Hi, Good day to you. I am new to stock market and i would like to know How exactly i understand that the shares which i buy or sell will give me profit. and also i want to know about the long term and the short term investments.
hi renuka ,
i have been trading from the past 3years and m planning to start my own broakering company
i have few questions which i m unable to get an answer
1- How much investment is required to start a broakering company
2- If you see companies like geojit etc have their own research centre how do i provide such facility to my customers
3- From where do i obtain a software to provide to my customers for online trading
kindly reply and help me clear my doubts
Awaiting your reply
Thanks®ards
Chetan k
thanks mam for all the information u made here.i am new and still don’t have a d mat account.is it necessary to open it through a broker? and is it not possible to do trading without a broker? tell me some step to start trading..
i’ll b obliged
thnx
Mam,I am new to Share Market…I am pursuing my MBA..so interested in online trading and can you please tell me about the charges the DP’s will levy for the transactions?
Hello Madam,
I want to learn basic to start on line trading.
is there any institution?where?
is there any books available in market?about share market trading?
please advise?
sir/mam
i kindly request to give me full information to how i can operate online trading?
i am homemaker i just want to start earning through online trading. before investing so plz let me know about the information.
i want to know on what basis the price of share goes up and down all the days,is there any connection with the buy and sell quanty amount of share or this comes on the performance of the company
hello i am romesh want to work on line trading and applied to open demat account through Future Equity Broker India Ltd with this address Romesh Lal VPO Fatwal Teh Bishnah Distt Jammu (J&K ) having saving bank account 30225758397 more than 15 had passed but no any intimation received as yet
hi mam,iam a house wife. i totally new to trading.iopened a dmat account.while going through basics of trading icome know about you. will you please help me to choose a broker or trading account.
sir/madam,
Hi…i am interested in shares trading but i am totally new in this field. is there any institution where i can get full knowledge about shares business. how much fees and duration of the courses.
hi, please define all terms releatet to share market like stoploss,short sel,…………….etc
Hi, I am Asawari Saraaph a Diploma holder in pathology but interested in the online trading. I have my own D-mat A/C and want some guidelines to operate it by myself. I just want to start earning through online trading so plz let me know about the information.
Hai mam,
this is lakshmi I wish to do online trading but i am very new to this field. please give me guidence how to start the investment in stock market. thanking you
thanks for good suggetions
hi miss
tell me the minimum amount i can invest in share market ?
Dear Renuka,
I am planning to start with share trading. Please let me know even the minutest details about it. How to do the proper market analysis. How much to start with initially?and more such details…
Thanks in advance
Hi Renuka,
Firstly thanks 4 all d informative articles, also would like to know more bout this field could u suggest some books or perodicals where i can obtain more info or maybe an institution? thanks
please tell me how should i start trading .I am new in this field
initially i want to invest a small amount of money in the
market pls guide me
I AM A DOCTOR RESIDING AT KOLKATA
I AM NEW TO THIS SHARE TRADING AND DOES NT KNOW ANYTHING ABOUT IT
IS DERE ANY COURSE WICH OFFERS ALL TITBITS OF THIS
WITH REGARDS
I am homemaker i just want to start earning through online trading. before investing so plz let me know about the information.
I m confused abt
‘stop loss’ specially for novice like me…
And i m also confused abt placing a limit order..
Hi this is Karim im very new in this arena i wanna to know abt share market basic and also interested to invest but how it could be pls help me. Tnx…..
Mam, i want to start earning through online trading, due some circumstances i have invested Rs.6000 also. im new to this field. please guide me mam.
Hi
Those who wanted to trade internationally by share of international company
They don’t sell their OFC/placement share,they will arrive on IPO by 2012
If u want to business with shares then u have to take membership of this company
If u r interested contact: seamewbd@gmail.com
Before I entering this website I dint know the tech terns and its meanings.It is explained in anexcellentmanner .
Thank u verymuch.
Dear Sir/ Madam,
Iam B.com graduated , now i still working , iam intersting in online trading job , please am new person I wish to know about share market business……which company market share have good value………
I have demat a/c, i have invested small money also, but so far i could found only lose, not the gain, how to trade, what are the precutions i should have to invest, if i should not meet loses again, can you advice me please.
I must compliment RENUKA for covering the topics lucidly. I am immensely benefited. peri subbarao