What is online trading?

It is basically the act of buying and selling financial products through an online trading platform. These platforms are normally provided by internet based brokers and are available to every single person who wishes to trade in the market. Most brokers, provide a variety of financial products including shares, commodities and currency. All it needs is a good internet connection, subscription to account, mobile banking application and sufficient funds in the bank account. Many free and paid mobile and web applications and portals for trading are available on internet. Stock trading can be financially rewarding if done in the right way. Investing in the stock market involves riding the various ups and downs of the market. Since the introduction of online trading in India, investing has become convenient. Stock market trading is a great alternative when it comes to long-term wealth creation. Online trading involves the trading of securities through an online platform. Online trading portals facilitate the trading of various financial instruments such as equities, mutual funds, commodities and currency.

Difference between Investing and Trading

 

Investing and trading are two different mechanisms employed to make a profit in the financial markets. Though both investing and trading may appear as parts of the same process for someone who is relatively inexperienced in the financial market, in reality the two are far from being similar.

Investing

Investing is traditionally related to buying stocks or other financial instruments that are expected to fetch returns over a long period of time. They are often held onto like family gold for several years. For this reason, it is important that investors select stocks or bonds of companies which are expected to grow in the long term. The aim of an investor is to create a balanced portfolio of different stocks and bonds that give returns through increase in value as well as dividends or interest income. This enables him or her to attain financial security. As a result, investors do not sell their holdings regularly. It is only in case of an emergency or when the stock has met its long-term targets.

Trading

Trading is characteristically associated with buying and selling stocks, commodities, currencies, bonds or other financial instruments over shorter periods. This is primarily to make profits from the short-term movements in prices of these securities. So, traders essentially take advantage of volatility. Assessing good trading opportunities typically makes use of trading systems or chart-based techniques to detect short-term patterns in prices. This is called technical analysis. It involves more frequent buying and selling of stocks or other financial instruments.

Online VS Offline trading

Benefits of online trading

How to start an online trading account

Steps to open a trading account online

How to Start Trading Online :

The steps one should follow before one invests in the stock market are:

How to do online trading?

For a long time in the pre internet era, and in fact, much of the early internet era, when a person had to buy or sell financial instruments like bonds, shares, etc., they needed to call their brokerage firms and ask them to make a trade for them. With that came a long drawn process of informing the price, checking whether the deal is right or not, and finally confirming it.

Thank God online trading happened. Online trading is much more simplified. A person can buy and sell securities simply by registering on an online trading platform. Internet based brokers are everywhere now, and anyone can easily buy and sell without any hassle.

Learning to Trade Stocks

Choosing a Brokerage Partner

Making Trading Decisions

What is technical analysis and how can one do it?

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Unlike fundamental analysts, who attempt to evaluate a security's intrinsic value, technical analysts focus on patterns of price movements, trading signals and various other analytical charting tools to evaluate a security's strength or weakness. In fact, some view technical analysis as simply the study of supply and demand forces as reflected in the market price movements of a security.

Some basic assumptions of technical analysis

What is technical analysis and how can one do it?

Technical analysis is a trading discipline employed to evaluate investments and identify trading opportunities by analyzing statistical trends gathered from trading activity, such as price movement and volume. Unlike fundamental analysts, who attempt to evaluate a security's intrinsic value, technical analysts focus on patterns of price movements, trading signals and various other analytical charting tools to evaluate a security's strength or weakness. In fact, some view technical analysis as simply the study of supply and demand forces as reflected in the market price movements of a security.

Some basic assumptions of technical analysis

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