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Best Online Trading Practices

By Neeta Chauhan

Online trading is an area where you buy and sell stocks and shares online through the internet. For online trading, one needs to open a demat account with an online trader who will help and guide you in trading. Whichever broker you decide to use, make sure that certain safeguards are in place. The insurance doesn’t cover trading losses. When selecting an online broker, ask about backup plans in the event of a technical problem. In the past, online brokers have had problems during periods of heavy market activity handling all of their customer requests.

Trading commodities online is almost a one-stop shop. You virtually have everything you need when you log in to your trading account. Most online brokers will have real time quotes, charts, futures news, technical analysis programs and research available for their clients.

This has opened the door for online traders to make more of their own trading decisions and implement trading strategies that once were not available to the average retail trader. The general public probably thinks that most commodity brokers are experts at trading and they make profits routinely every year.

Research the stocks that interest you. It normally takes most people several years to gain enough trading experience along with extensive research and market study to become consistently profitable traders. In fact, most commodity brokers do not consistently make money for their clients, but they can make a nice living off the commissions. It is ambitious but often naive for a new commodity broker with no market experience to believe he or she can consistently make money for clients from day one.

You will want to judge both their long-term performance and the short-term trends that the company is currently facing. The specific stocks you choose will depend on your investment strategy. You will need to decide between a passive or aggressive investment strategies. A passive approach is much safer, but takes a long time to earn a profit. An aggressive strategy has faster payoffs, but is also a high-risk way of investing. Some investors practice shorting stock as a hedge to protect their portfolio. In most cases, this is not required nor recommended for individual or institutional investors.

Some of the best online trading platforms are Supertrade, Sharekhan Classic trading platform and ICICI Speedracer. Get expert help if you think you are not much aware of the concept of online trading by paying a bit more than usual. If you have selected a company you believe has excellent prospects for the next decade, you should view a declining market as an opportunity to purchase more of a good thing, not something to be dreaded. In India, companies like Reliance Money and Kotak provide online trading platforms for trading. If you believe you have the instinct that can guide you to be a good online trader then please go ahead and let your instinct guide you.

Online trading can be a dangerous thing if you are undisciplined or have a gambling mentality. For those who are well disciplined and have a sound trading plan, doing online trading through an online broker is the best way to go. A trading plan is your guide to how you will control your trading. It should be in writing and reviewed regularly. The trading plan should include the markets you will trade, your trading strategy, money management and even a plan to stop trading for a period of time if your account equity drops to a certain level.

If you need a person to advise you on money, the Money Adviser can help. You can now also trade via Mobile Trading making it even more convenient for you.

Article kindly provided by UberArticles.com

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Article Citation
MLA Style Citation:
Chauhan, Neeta "Best Online Trading Practices." Best Online Trading Practices. 10 Jul. 2010. uberarticles.com. 6 Oct 2014 <http://uberarticles.com/finance/best-online-trading-practices/>.

APA Style Citation:
Chauhan, N (2010, July 10). Best Online Trading Practices. Retrieved October 6, 2014, from http://uberarticles.com/finance/best-online-trading-practices/

Chicago Style Citation:
Chauhan, Neeta "Best Online Trading Practices" uberarticles.com. http://uberarticles.com/finance/best-online-trading-practices/


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