What is the motive of online share trading?
Technology is transforming innovation worldwide at its core, allowing various sectors and business verticals to test new ideas at speeds and prices that were unimaginable even a decade ago. With various new innovative techniques they can stick features on Web sites and tell within hours how customers respond. As the generation is riding the digital wave, many find that switching up old, tired practices and deviating from the norm can be crucial to survival. One such vertical of Indian business industry is “Share Trading”. With the evolution of internet and various tech-savvy mediums to trade at the click of a button from your phones, laptops, tablets etc. share trading has become an online game being played while sipping a cup of morning tea. Online share trading platform is easier to buy and sell shares and long term investing philosophies.
Indian buyers are very reluctant with the concept of stock trading. Most investors are better off being long term investors who hold stocks for a long period of time and let their investments grow. So for most people, the lesser they trade, the better it is.
However, the goal of any good online and offline share trading platform should be to make trading as easy and cheap for their customers as they possibly can. Convenience and cost effectiveness will drive people to buy and sell stocks frequently and that goes against the goal of profitable long term investing. An online share trading platform is a lot easier to use than a traditional broker, and that is both a positive and a negative.
Anyone with an internet connection can get used to an online concept and start trading within minutes. It makes it easier for you to deal in derivatives, commodities and currencies. Starting September-October 2010, the Bombay Stock Exchange and National Stock Exchange have started allowing mobile trading, thereby broadening the base of online equity transactions across the nation.
With the new arm of the online share trading technology in process broking houses have already recorded an increase in the number of people subscribing to mobile trading. To boost the trading platform major telecom players have introduced affordable and innovative GPRS plans which have increased internet access through mobiles, tablets, notebooks etc.
However, the problem is that just because it is easy to use; it becomes easy to abuse as well. Online brokerages are great because they make it easier to buy and sell stocks, and they are cheaper than traditional brokerages. But just because you can buy and sell easily, investors tend to gear up the activity very rapidly thereby disturbing the pace of growth and affecting profit making shares. Trading frequently increases costs and eats into your profits.
The objective of investing is to make steady money in the market, and that is best done when you leave your investments alone for a long period of time. When you realize this it will increases awareness and helps you avoid easy but foolish trades. If you are going to buy or sell something, which you are not sure about, take some time to think and then go with your decision. This will help you understand the things would vary a lot thereby influencing your decision. And if that is a big part of it, then you should rethink your decision.
Although online share trading is a technological bless for million of the curious investors across the country, however, if sufficient knowledge and patience is not implemented to trade it can surely turn into a mess for these investors at any given point of time.
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