| Technology has widened the scope for | | | | come across in the headlines of the local |
| tremendous growth in the stock market. Stock | | | | business newspaper. Because publicity may |
| dealing on the Internet involves only | | | | increase the price and the market capital of |
| execution of the orders. You can buy or sell | | | | a stock but it may not be beneficial for you |
| your stocks from more than 100 online brokers | | | | as a buyer. |
| instantly. Online trading is the quickest and | | | | |
| the most convenient way of dealing in stocks. | | | | - When the stock market drives down the price |
| | | | of a stock, you can make big money on the |
| Steps to trade stocks online: | | | | investment made after identifying that stock. |
| | | | This is due to the fact that stocks that fall |
| - The first step involves identifying a good | | | | hard are observed to bounce back and show |
| online broker, to avail of inexpensive | | | | good quarters for investors. |
| services and tools. | | | | |
| | | | - Your losses can be limited in the fast |
| - Make sure that the online broker has an | | | | moving stock market, if you gather sufficient |
| easy to navigate website. The web pages must | | | | information on the stocks you intend to buy |
| load quickly, since you may have to look at | | | | and the investment risk attached. Consider |
| more than one chart while you wait for the | | | | the long-term growth opportunities of a |
| right price to buy or sell the stocks. | | | | particular company before buying stocks |
| | | | online. |
| -The trading screen should be well organized | | | | |
| for you to double-check all the information | | | | - According to the wall street journal, if |
| before trading. | | | | you have your stocks in a great company then |
| | | | the best time to sell your stocks is 'never'. |
| - Do not opt for delayed quotes. A delay of | | | | If you cancel the online trade, immediately |
| 1520 minutes can affect your chances of | | | | contact your firm to ensure that the original |
| profit. Ensure that you avail of real time | | | | transaction was not executed. |
| quotes. A good online broker will execute | | | | |
| your interests as quickly as the stock moves | | | | - Always remember that trading of stocks |
| a point. If there is an unnecessary delay in | | | | online is not an instantaneous process. |
| filling in the order, you could stand to | | | | Technological 'choke points' like a slow or |
| lose. | | | | faulty Internet Service Provider or computer |
| | | | can slow down the process of your orders |
| - Take time to choose the best online broker | | | | reaching the firm. You can also avail of |
| because the wrong choice can turn online | | | | telephone trade or faxing your order. |
| trading into a nightmare. It pays to access | | | | However, these alternatives also come with |
| the stock trading forums and conduct thorough | | | | similar delays. |
| research. | | | | |
| | | | When a number of investors trade at the same |
| -Reputed online brokers are equipped to | | | | time, prices change and delays become |
| provide quick confirmations on orders and | | | | unavoidable. As an investor, you could suffer |
| offer account balance information and current | | | | unexpected loss. You should make sure that |
| portfolio updates. | | | | you understand all the nuances of buying and |
| | | | selling stocks online, before you make any |
| - Look for an undervalued company. Do not | | | | move. |
| just buy the first over publicized share you | | | | |