Shubham rawal S.D.T. kalani college, S.Y.B.com, Roll no. 47, Sub.- C.S.P.

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Contents
Introduction What is online trading or Internet Trading? Definition of 'Online Trading' Brokers and Online Trading Online Trading article by TradeTrek.com Conclusion

Introduction

What is online trading or Internet Trading?

Online Trading is a service offered on the internet for purchase and sale of shares. In the real world, you place orders on your stockbroker either verbally (personally or telephonically) or in a written form (fax). In Online Trading, you will access a stockbroker's website through your internet-enabled PC and place orders through the broker's internetbased trading engine. These orders are routed to the Stock Exchange without manual intervention and executed thereon in a matter of a few seconds. The shares can be traded on Mumbai Stock Exchange and National Stock Exchange while commodities can be traded on National Commodity & Derivative Exchange, Multi Commodity Exchange and National Multi Commodity Exchange. There is nothing more exhilarating, more daring and more rewarding than making the right trade at the right time. Welcome to our onlinetrading platform which brings you a world class experience of online investing. Buying and selling of shares is now just a click away through diet ODIN.

Definition

The act of placing buy/sell orders for financial securities and/or currencies with the use of a brokerage's internet-based proprietary trading platforms. The use of online trading increased dramatically in the mid- to late-'90s with the introduction of affordable high-speed computers and internet connections. Stocks, bonds, options, futures and currencies can all be traded online

Online Trading

Brokers share the undesirable reputation of lawyers, bankers and accountants. They earn a living by selectively sharing knowledge that the general public can't easily access. But, like it or not, they are the individual investor's direct link to Wall Street. Although technology and the internet have made it easier for individual investors to take control of their portfolios, the basic rule still applies: you need some kind of broker if you want to trade stocks and bonds. In any profession, you will find people who take advantage of those who aren't in the know. Whenever you buy something, there is the possibility of being cheated. Furthermore, with a broker you purchase advice, which is hard to price. But not all brokers fit the swindler stereotype. In fact, there are many brokers who do a phenomenal job of guarding their clients' interests. There are also many discount

brokerages that provide remarkable services for a reasonable price. It's up to you to pick the broker that meets your needs. This tutorial will go over some important factors to consider when making the choice. If you are new to the market and don't have a solid understanding of the various securities, check out the Stock Basics, Bond Basics and Mutual Funds tutorials.

Online trading has become the standard method for buying and selling stocks for many people, especially those who have only gotten into the market since the rise of the Internet. The ease and rapidity of online trading allow investors to make decisions regarding stock trading in a manner that forgoes the careful calculation and deliberate analysis of data that had been the standard trading methodology

Online Brokers

Online trading is not the same thing as trading without a broker. Registering with an online broker is, therefore, the first step in getting involved in trading stocks from the comfort of your living room or office. The most popular online brokers include E-Trade, Ameritrade and Charles Schwab, but there are many others from which to choose. The use of a online broker is necessary for the proper management of the both the money and the stock in your account.

Requirements

Most online brokerages require that investors keep a minimum investment before they can begin trading on the stock market. The minimum amount required to open an account will vary from broker to broker. Once this amount has been deposited and you have conducted your first online trade, many brokerages will then insist upon your keeping a minimum balance in the account, although it is possible to find some online brokers that do not have this minimum requirement.

Fees

Online traders use their accounts for a variety of different trading methodologies. "Daytrader" is the name given to those who will be trading stocks on perhaps a daily basis. Others, however, may just buy one or two stocks and hold on to them for a long period of time. Online brokers should be checked for fees related to making numerous trades, as well as fees related to account

inactivity. Depending on the type of trader you foresee yourself becoming, determine what kinds of fees the broker enacts.
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Expert Advice

One fee that may be avoidable is an extra charge for getting expert advice. Some online brokers do not even offer expert insight, and are usually the most inexpensive to deal with. On the other hand, you may be saving money in fees but losing money by investing in unwise stock choices. It may be worth the extra fees to get statistical analysis of the kind you cannot get on your own.

Other Services

Some brokers allow you to do many more things than simply buying and selling stocks. The bigger and better-known online trading sites are actually more like banks, offering such services as mortgage loans, credit and debit cards, money market funds and even the potential for investing in bonds and futures trading.

Benefits

The biggest benefit of online trading over traditional stock trading is that it can be done with real-time knowledge of prices. Most people are familiar with those old-time stock tickers that produced ticker tape; the stock prices those tickers produced were usually around 15 minutes old. Today's online trading can be done almost instantaneously, using stock prices that are as up-todate as possible.

Online Trading

The Internet revolution has been changing the fundamentals of our society. It shapes the way we communicate and the way we do business. It brings us closer and closer to vital sources of information. It provides us with means to directly interact with service-oriented computer systems tailored to our specific needs; therefore, we can serve ourselves better by making our own decisions. This prevailing shift of the business paradigm is reshaping the financial industry and transforming the way people invest. In the following discussion, we will briefly explain how the Internet has been changing the way people trade stocks, and we will introduce some of the pros and cons of using online brokerage companies. Then we will look at some of the trading styles people practice and introduce an important trading technique that a lot of professional traders have been using with great success. Finally, you will learn how Tradetrek.com can help you apply these trading techniques online with trading tools that make online trading easy, fun, profitable, and understandable!

In the old days, because of the limitations of communications technology, Wall Street was the center for most of the Stock Exchange and Brokerage firms. Today, at this millennial transition, investors can use revolutionary Internet Client-Server technology to trade stocks nearly anywhere, anytime, independent of brokers' fees and service limitations. This new access by the trading public to low-cost transactions and cutting-edge, real-time market information that formerly belonged only to brokers has opened up extraordinary new investment opportunities

as well as a crucial need for state-of-the-art information. It is exactly these new-market investment services that Tradetrek.com specializes in satisfying.

Jumping

Learning to use the new online trading tools provided by brokerage houses may take very little time. In only a couple of mouse clicks, you can make thousand-dollar transactions in a matter of seconds. Modern technology in hand, you have total control over the money you are investing, which really gives you the tools and confidence to beat the S&P Index! There are a number of brokerage.coms out there, such as Ameritrade, DLJdirect, SureTrade, Datek, Charles Schwab, E-Trade, just to name a few. As a result of a price war between these companies, the commissions that these companies charge per trade have dropped significantly. For example, Datek charges $9.99 per trade, Ameritrade $8, and SureTrade only $7.95. But you need to keep in mind that price is not the only factor in choosing a service. You also have to consider how frequently you trade, what other services you might be interested in, how reliable the trading system is, whether it is hard to log on when the market is active, and quite a few other variables. In order to attract more users, many online brokers continually upgrade their systems to allow more log-ons simultaneously; they may also offer new value-added services such as company news releases, earning reports, and market commentary.

TruthMomentofMarket

Okay, then. Imagine that now you know exactly what to do: Buy a computer. Sign up with AOL. Find an online broker. Deposit an initial sum of money. Now you're in! And at the brink of your first trading moment, your hands sweating, heart racing, you hear yourself asking, "Am I really ready?"

The Need to Know

Wait, then: you might not be quite ready. Not yet! Estimates show that more than 80% of all online investors lose money at the outset. While you know that a great number of portfolio holders have realized great profit--for some of them, even fortunes--you realize that to be a winner you first need to exercise prudent judgment to join that 20% who really are successful. Perhaps you haven't yet realized quite what you are facing now that you've gotten rid of the commission-swallowing middlemen (Wall Street brokers and expensive financial advisers). You are on your own. And sorting through hundreds of websites for stock tips, market updates, and company profiles, who wouldn't feel overwhelmed! Perhaps in this vast universe of digital feed, you realize more sharply than ever that you lack clear strategies for evaluating market possibilities of the thousands of stocks out there. You constantly hear stories of stocks that break the trading range, reach an all-time high, and then, before you have time to act, slide 30 points in two days. By the time you get the news you are too late to capitalize!

 Information Tools Make All the Difference!

While you sense the promise and enjoy the excitement of modern technology, like so many others, you probably feel overwhelmed, frustrated, even lost at the prospect of putting your savings online, on the line. Certainly none of the skills crucial to sizing up the market are intuitive; therefore, in order to see what is really going on, and to become a successful investor, you are going to have to learn about the market's state-of-the-art trading techniques and strategies.

Type of investing

Different people trade in different styles. There are long-term investors who buy stocks and hold for a year or two. Mid-term investors may buy and hold stocks from thirty days to six months. Short-term traders trade frequently, on a weekly basis. And finally, day traders buy and sell every day. Now, assuming you make good decisions, the more frequently you trade, the more profit you gain. But what style is right for you? Which stocks should you choose and how long should you hold them? Some investors like companies with strongest earnings. Those who like to invest in big blue-chip companies are not willing to bet on startups. Other players examine company financial statements and balance sheets, picking only those with low debt ratio, high cash flow, and high profit margin. More sophisticated players (this brings us closer to Tradetrek.com!) behave differently. They scrutinize stock charts, looking for hidden trading signals that may reveal a major opportunity. They understand a cardinal element in how to make money in the stock market: Buy the

right stock at the right time! Of course, this is more easily said than done. Capturing the right moment to buy and sell requires certain techniques called technical analysis (TA). To put it simply, TA is a set of techniques analysts use to spot revealing stock patterns in advance. The principles underlying technical analysis have proven successful in dealing with all financial markets. Applying these techniques in online trading, then, is essential to discovering a winning investment position, whether you are a long-term, mid-term, or short-term trader. Technical Analysis is so important that almost no investor can trade successfully without it. Fortunately, Tradetrek.com has now come up with an innovative paradigm to put real-time technical analysis tools online. Scientists at Tradetrek are now applying newly developed artificial intelligence, neural network, and pattern-recognition technologies to real-time technical analysis among hundreds of stocks. By taking advantage of Tradetrek'sIntelliChart, you won't have to spend hours upon hours going through thousands stocks in hopes of finding a sound and promising performance pattern. IntelliChart conducts realtime searches for more than a dozen technical analysis patterns and presents you with the most profitable stocks among thousands of stocks being traded. Under each chart, a detailed explanation generated automatically by Artificial Intelligence helps advise you on what course of trading action to take.

Conclusion

The use of online trades has increased the number of discount brokerages because internet trading allows many brokers to further cut costs and part of the savings can be past on to customers in the form of lower commissions. Another benefit of online trading is the improvement in the speed of which transactions can be executed and settled, because there is no need for paper-based documents to be copied, filed and entered into an electronic format.

Bibliography :
This information is collect from following sight Wikkipedia BSE NSE

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