Whether you are a big investor or make investments to make small profits, you are just a click away from buying and selling shares with the inception of online trading platforms.
How to get started with online share trading?
Getting started with online share trading is relatively easy. All you need is a smartphone or personal computer and a stable internet connection to start trading. Here are a few simple steps that you need to follow to try your luck in the online stock market:
1) Pick on an online platform
To trade online, you do not need a broker to mediate, but you definitely need to have a trading platform where you can get started with your online trading journey. Apart from that, there are multiple online trading platforms; you can pick one based on your research and judgement to store your purchased shares.
2) Open Demat account
The next step is to open a trading account. With the advent of technology, it has become a lot easier to open a Demat account though the procedure for opening the account may vary from broker to broker. All you need to do is to provide your personal details and other relevant data, submit the necessary documents as requested, and soon your account gets activated within a couple of hours once all your details and documents are verified.
3) Start Trading
Once your Demat account becomes functional, you can start your online trade and experience what online share trading platforms bring you to the table. Check out the trending stocks and learn which companies to invest in to start making profits out of your investment. Also, make sure to do a little bit of research about the online platform that you have picked up for trading purposes.
Things to remember while investing in stocks
To become successful in online trading, you need to have specific strategies in mind. Here are a few things that you need to bear in mind:
● Set your goals: Before investing, decide the purpose and time horizon for which you will be investing. Decide a term when you will take a cashback or decide the tenure for which you will be saving with a clear set mind.
● Be calculative about risks: Trading is not only about sunshine and rainbows all the time; you also have to face the rains in the form of losses. So, you need to calculate the risks that may come your way while trading. Decide your risk tolerance and learn when to stop loss and get rid of loss-making shares.
● Have a strategy in mind: Different traders may have different strategies based on their knowledge and analysis. But, whatever the case, you should design some or the other strategy to trade in stocks. Also, you need to know about the stocks you plan to invest in to master the art of trading.
Advantages of online trading
Online trading has many benefits over the old traditional method of trading. Here are a few advantages that you get to enjoy when you open a Demat account and start trading on your own:
Cheap and fast mode
When you include a broker to get started with your trade, you end up paying more money. But when you opt for online trade, only a brokerage fee is charged, which is comparatively very less than the amount that a broker charges. Also, online trading is a rapid and instant process that allows you quick buying and selling of shares.
Real-time monitoring
There are a lot of advanced online tools present on trading platforms that help in monitoring investments. Such tools give the user complete control to monitor their shares' performance. On the other hand, you get to see the real-time profit and loss that your shares are making.
No middleman required
One of the best advantages of online trading is that you do not require an intermediary for trading purposes. You can directly sell and buy shares without a broker's consent. Also, you end up saving a lot of money that goes invested in paying the brokers.
It allows complete control over your investments
Online trading platforms allow the Demat account holder full control over their investments. A user can trade at their own convenience during trading hours without any interference. Also, one can make their own decisions of buying and selling shares without having anyone in between who persuades your decision of investment.
Wrapping Up
We hope this guide gives you a clear understanding of online trading, its benefits, and how you can get started. So, what are you waiting for? If you are enthusiastic about starting your online share trading journey, follow this guide and do proper research to stay geared up during the online trading process.
