3. stock online trading Freedom of tradeAccording to Braudel, every form of trade association was set up, and knowledge of every method of credit and payment was known to 11th century Islamic and Jewish merchants. The joint stock companies were first started by Dutch, according to which shareholders could invest in the businesses and reap both the profits and losses. The first stock exchange was started way back in early seventeenth century, and The Amsterdam Stock Exchange was considered as the one. Moreover, continuous trade was given to it by Dutch. Stock is the capital raised by the government by issuing and distributing it to the public in the form of shares. Anybody with money can buy these shares at one value and sell them at a higher price whenever the stock reaches it. The buying and selling of these shares is known as stock trading, which might give one a loss or gain to the person involved in it, even though everyone wants only profit.


People get into trading stocks for big and easy money, to get returns on investments sooner, or as full or part time job, or for immediate money. One should start the trading stocks with planning. Moreover, discipline, time and stress management are necessary while one trades in the exchange.

They can take guidance from people already involved in the stock trading, because starting alone might cost them too much of money, and learning by trial and error is not recommended unless one does not mind losing money. A beginner should know the basics of this stock online trading like the type of broker, order, online trading platforms, the constitution of price, and so on. Also, one should why one picks the share. While picking up a share, one should know to decide on trading a share with the help of the trend shown by the stock in the market, price history of the stock, technical analysis of the charts of the company, and moreover, one should be able to justify their belief about a particular stocks performance. Instead of gambling over a stock, one should solid reason to opt for or out of a stock, as online stock trading is not the correct place for checking out ones intuition. There should be no place for emotions while online trading.


After gaining knowledge about online trading of stocks, one should know that there are many benefits due to it. They are low commissions, that is, one need not pay much brokerage, convenience of sitting in a place and trading without the intervention of anybody, or the chaos or confusions caused on the exchange floor. There are also other advantages like one would be able to modify or cancel or initiate a trade without anybodys help, unlike the manual trading. With this type of trading, one does not have to travel to the exchange, but just plug in the computer at any place, convenient to them, with a broadband connection, and start the trading. Like in the manual trading, one has to be a registered member of any brokerage firm. Moreover, the information of the stock market or any particular stock is available at a click away.


The main disadvantage in the online stock trading is that due to the absence of middlemen to assist, one may end up gaining major money or losing the same. In case of manual trading, due to the brokerage they get, the brokers assist one in their planning. Instead of just devising the investment plan by one, they could have an investment planner, who would help one to invest wisely. One can even analyze about a stock by going through newspapers, magazines, watching television, and so on. The computer used by one for trading should be faster, and should not be loaded with other applications. This would avoid the system crashing at the correct time. Therefore, first investment should be on a good computer.During trading, one should always decide the upper and lower cut off price, and should be prepared for the worst. Risk is the important factor involved in this business. Quarterly results of respective companies are displayed online, which also contributes to more online investing.


The space given to online trading makes one to trade at ones risk. Rates can set by the online trader for buying and selling at his own will. There is no limitation for the number of stocks to be traded on a day. Trading is limited only due to non availability of cash. There is an option of modifying, canceling the order. Selected Scripts are added online to their trading account and also deletion of script is done. Actual buying and selling of portfolios can be tracked by online trading. Equity, Futures and Options trading can be done online. One can instantly transfer the amount from one account to another DP account; money is directly credited from the bank to the account. The details of the reports can be seen before and after the hours of trading ends.


Bill summary reports displays online the user information under which account name, branch id, company id, date, traded timing, number of shares of the script bought, market rate, Net rate, market value, net value, order number, trade number, brokerage, along with Net of Current, Service Tax, STT, Stamp Charges, Turn Over Charges, DP Charges, and Net Amount Due. We can also view ledger summary online in which document number, projected balance, amount, balance are reported for the customer.