Online Trading is trading with the help of Smart Phones or smart systems. The steps to do online trading are: Open a Demat account, Download an app of broker, and selection of the right Stocks. So Let’s understand “What is Online Trading?”.
Online trading can be done directly from the app of a broker by analyzing the highs and lows of shares. Trading can also be done in Commodities, Derivatives, and Currency.
The benefit of online trading is that you can do it from anywhere. But self-control is very important to stop yourself from getting addicted to Trading.
What is Online Trading?
Rohan is a small businessman. He is not aware of Smart TV and Smartphone’s If he wants to buy shares will call his trader and asked for Yes Bank shares. The Trader will buy shares on Rohan’s behalf. This is called offline Trading.
Rohan’s friend Sohan is very smart and is well versed with smartphones and smart TVs. Using his phone and Systems he buys and sells shares. This is called online trading just like online shopping.
Steps for Online Trading
Step 1:- Open a Demat account.
Step 2:- Download the app of the broker. If not, you can visit your broker’s website and can find many options there.
Examples of a few brokers are –
Zerodha (Open Free Demat & Trading Account )
Angel Broking (Open Free Demat & Trading Account )
Upstox (Open Free Demat & Trading Account)
Selection of Right Stock.
You can get multiple options and information about stocks on the broker’s app or website which will help you choose your stock wisely.
When you do online trading you can see the price of shares listed. If you want to buy at the price, You can buy it immediately but if you think that the shares are expensive today you can wait for a few days.
Similarly, if you want to sell shares you can sell according to the current price. If you think that the current price is less, You can wait for a few days to get the share price higher and sell letter. You can even keep the shares with you for a week, or a month if you don’t find the current share price suitable.
You can simply buy or sell shares whenever you want at whatever price you want and the whole process will be executed through an online platform.
If you sell, The shares will be deducted from your Demat account and You will get money in your account.
Not just shares, You can also do trading in:
- Mutual fund
All of these are listed on your broker’s platform. You can sell or buy easily on such platforms.
Benefits of Online Trading
Meena is a homemaker. She has started investing in the stock market by sitting at home. She is smart enough to know how to use a smartphone.
Through online trading, She wants to buy Reliance shares on the Brokers website, Meena gets all the information about shares highs, lows, how many people want to buy, etc.
Using this information, Meena can easily buy and sell stocks and can keep a track of the order status. The most beneficial part of this trading is that even when Meena is on a vacation with her family, She can easily trade online.
How to stay away from Trading Addiction
When online trading seems easy people get addicted to it and tend to lose a lot.
For Example, Rohit is a new trader and thinks that trading is the easiest job. He is happy in making small profits by buying and selling shares. While making profits, He never noticed his small losses. Even when he is sitting idle. He thinks of trading to earn more money.
To recover his loss, He starts new trade and that leads to another loss. He couldn’t realize his loss until it reached the lack of rupees.
That’s why it’s important to control your greed. The most efficient and helpful way to stay away from trading addiction is self-control. You can talk to your friends and family, divert your mind by doing something else, or pursue a hobby to avoid trading when you are idle.
- Never become greedy in Trading.
- Don’t fall for profit in the beginning.
Trade online with the help of a Smartphone or laptop. Choose your broker and stocks wisely and have the self-control to avoid getting addicted to trading. I hope you understand very well what is Online Trading?