Welcome to the window of opportunities – Stock Trading

New investors who are making their presence in the stock market need to have a concise view of the market fundamentals. In this regard, they should have access to multiple sources of quality education. It should be like a trial and error method, where the ability to hold forth will eventually lead to success. The greatest advantage of stock trading is that the game itself tends to last a lifetime. Investors need to hone their skills and develop with the passage of time. The game is in full force and the methods which were used twenty years are still used today. With the evolution of stock trading tools in India, investors are provided with a breathing space.

First and foremost, one needs to open an account and find an online stock broker. They need to familiarize with the layout and need to take advantage of the free trading tools, which are offered to the clients only. Some brokers even offer the facility of virtual trading, which works out to be beneficial as you can work with play money. Reading books could provide you with a wealth of information and are unusually expensive. Articles could also work out to be a fantastic source coupled with the fact that they are easy to understand and follow. Finding a mentor could also be an important aspect. They could be your near or dear ones and should have sufficient amount of experience and knowledge related to the ups and the downs of the stock market. A good mentor is willing to answer questions, recommend useful learning resources, provide help and keep your spirits high when the market gets tough. A point noteworthy is that all the successful investors of the past and present had some mentors in their early days.

unnamed

Then one can opt for paid subscriptions. You pay for research along with analysis, which can be helpful as well as educational. Some investors may find it more beneficial to watch or observe market professionals rather than learning it themselves. In fact, there are many paid subscription sites available on the web. You could also go through the various news sites, which is an excellent source for the new investors. By reading headlines, the investors can expose themselves to different stock terms for example.

You could also pay a visit to the seminars. They can provide valuable insight into the overall market and specific investment types. Most seminars tend to focus on a specific aspect of market and how the speaker has been able to make it big by utilizing their own strategies over the years. Though most of the seminars are paid, yet some of them are free, as well. Just a visit to them will help you gauge the sales pitch. Last but not the least one could sign up for market alerts, which you can receive by email or daily alerts from time to time.

Advertisements

Is online trading of stocks the best route?

Once upon a time, the only way of trading stocks was through a stock broker. They would take stocks orders, make suggestions and then handle the task of buying along with the selling of the shares. With the evolution of the internet, the brokers have become more of a commodity that is used by those who tend to deal with huge volume of stocks. An average individual does not need the services of a stock broker as he can trade online. In fact, for the casual traders, they are numerous benefits of trading online.

The first and major benefit of trading online is cost. Brokers are known to make their living with stocks and bring their skill sets along with the relevant educational credentials to the fore. All of them prove to be very effective, but comes at a cost. Often they charge a brokerage fee for their services, but more often than not they demand a certain percentage of the earnings, as well. Different other fees can also be added on to the exchange, which is at the sole discretion of the stock broker. On the other hand, the online broker firms charge a flat rate of brokerage on each transaction, which works out to be extremely beneficial in comparison. Lots of websites have the tool of brokerage calculator online, as well, where you can get a clear cut idea about the amount you need to shell out.

unnamed

The second benefit of online trading is that you can make as many as trades you desire. Brokers are, generally, known to demand a minimum allotment of trade, which means that an individual cannot make a single trade for a paltry sum. In a way, there were forced to succumb to the terms and conditions of the stock broker. This prevented the casual traders from being able to trade in the stocks they desired. The third benefit of online trading is that you have full control. This was one of the biggest complaints associated with the stock broker as they were known to hold a stranglehold in the market. The obvious fact was that they would quite often refuse to perform a transaction, which according to them was poor trade. If they saw any flaws, they had the full right to deny performing the transaction. While this would save a client from making a bad investment, it would also prevent them from taking a risk that would eventually pay off in the long run. Online trading removes the middlemen between the stocks and the traders.

The stock market has evolved considerably from the primitive days where it was confined to the four walls. Now days, with a computer in hand, anyone can trade online sitting in the comfort of their home. And most importantly, the control vested in the hands of the brokers has been passed onto the individuals in this form of trading.

The tools to success

To understand any concept thoroughly, it is necessary to start from the grass roots level. Learning something from bottom up ensures you know every aspect pertinent to the concept and you can utilize it in practical scenarios much better. When it comes to online stock trading, the same holds good. Not only should you have an idea about what kinds of stock are you trading in, the terms associated with the trade and how you can become a registered trader, you must also know how the software or “tools” associated with online trading are to be used.

Here are some tools that you will commonly use to trade in stocks:

Platforms – As you are trading online, there are platforms that can use to trade in. They are the software designed specifically for you to buy and sell stocks. To start off, what you can do is practice trading on virtual trading sites that will let you trade in a few stocks and provide real time quotes based on the current market conditions. These practice platforms have very little or minimal risk and you can start with low amounts. When you get the hang of correctly analyzing market trends and trade correctly, you can become an active trader on real platforms.

Execution tools – When you use a particular platform to trade in repeatedly, it may register your trading options and when you are in the market for the same or similar types of stocks, fill orders quickly for your approval rather than making you go through various spreadsheets to analyze the stock performance. So, whether you are looking to trade in equity or preference stocks, these tools will guide you with the best bids or prices for you to select from.

stock trading tools1

Educational tools – Want to know what’s a bullish, bearish or neutral market? Confused between stocks and penny stocks? Want to know more about preference shares and why they may be better than debentures? Want to know how volatility affects the price of a share? Then be sure to go through the stock trading tools that may be provided to you on the site that you trade in or from other sources.

Are you wondering how the market worked before online trading became popular? People used to call their broker and provide instructions as to which stocks they wanted to trade in and in what manner. It was tedious work for the trader as the listed price and conditions of the market had to be correctly assessed before making such decisions. Nowadays, with these stock trading tools and platforms, everything is within easy reach and there are programs that prompt you when you are confused. When you trade through a reputed online stock broker, then the work becomes even easier because they do all the research on your behalf and let you decide which ones you should trade in.

India, after USA, has been listed as one of the countries where online stock trading is popular and has many skilled brokers in field for you to choose from. So, make use of this opportunity and trade profitably always.