| Technology has widened the scope for | | | | newspaper. Because publicity may increase the |
| tremendous growth in the stock market. Stock | | | | price and the market capital of a stock but it |
| dealing on the Internet involves only execution of | | | | may not be beneficial for you as a buyer. |
| the orders. You can buy or sell your stocks from | | | | - When the stock market drives down the price |
| more than 100 online brokers instantly. Online | | | | of a stock, you can make big money on the |
| trading is the quickest and the most convenient | | | | investment made after identifying that stock. This |
| way of dealing in stocks. | | | | is due to the fact that stocks that fall hard are |
| Steps to trade stocks online: | | | | observed to bounce back and show good |
| - The first step involves identifying a good online | | | | quarters for investors. |
| broker, to avail of inexpensive services and tools. | | | | - Your losses can be limited in the fast moving |
| - Make sure that the online broker has an easy to | | | | stock market, if you gather sufficient information |
| navigate website. The web pages must load | | | | on the stocks you intend to buy and the |
| quickly, since you may have to look at more than | | | | investment risk attached. Consider the long-term |
| one chart while you wait for the right price to buy | | | | growth opportunities of a particular company |
| or sell the stocks. | | | | before buying stocks online. |
| -The trading screen should be well organized for | | | | - According to the wall street journal, if you have |
| you to double-check all the information before | | | | your stocks in a great company then the best |
| trading. | | | | time to sell your stocks is 'never'. If you cancel |
| - Do not opt for delayed quotes. A delay of 15-20 | | | | the online trade, immediately contact your firm to |
| minutes can affect your chances of profit. Ensure | | | | ensure that the original transaction was not |
| that you avail of real time quotes. A good online | | | | executed. |
| broker will execute your interests as quickly as | | | | - Always remember that trading of stocks online |
| the stock moves a point. If there is an | | | | is not an instantaneous process. Technological |
| unnecessary delay in filling in the order, you could | | | | 'choke points' like a slow or faulty Internet Service |
| stand to lose. | | | | Provider or computer can slow down the process |
| - Take time to choose the best online broker | | | | of your orders reaching the firm. You can also |
| because the wrong choice can turn online trading | | | | avail of telephone trade or faxing your order. |
| into a nightmare. It pays to access the stock | | | | However, these alternatives also come with |
| trading forums and conduct thorough research. | | | | similar delays. |
| -Reputed online brokers are equipped to provide | | | | When a number of investors trade at the same |
| quick confirmations on orders and offer account | | | | time, prices change and delays become |
| balance information and current portfolio updates. | | | | unavoidable. As an investor, you could suffer |
| - Look for an undervalued company. Do not just | | | | unexpected loss. You should make sure that you |
| buy the first over publicized share you come | | | | understand all the nuances of buying and selling |
| across in the headlines of the local business | | | | stocks online, before you make any move. |