When a country’s key Stock Index almost doubles (Sensex from 28,265 in April 2020 to 58,000 levels in Sept 2021) in just 1 year, the exponential volumes of online trading cannot but be alongside, in spearheading this revolution! Today every 6th household is said to have a demat account and around 45% of trading turnover in stock exchanges is driven by individual investors. Share brokers and their investor-friendly offers in the form of Stock trading software, have made touch of the button-mobile apps - accessible to them, round the clock!

Online trading has a lot of benefits; here are the 7 main benefits:

Convenient

Online share trading has as its unique selling point - ie the Convenience it brings to this activity making an investor’s life much simpler. It brings a lot of rationality to this activity, making it easy, fast and independent of the location of the trader. All he requires is a reliable dataMonitor connection with a computer or a mobile and he could be in any global corner. With this minimum toolkit, he has access to a screen which obeys his command relating to any kind of legitimate trade, both during market business hours, or even after hours.Online stock trading apps for Android or Apple devices, both give access to a customized, security protected Dashboard, which allows the trader to flexibly, initiate trade, review positions, generate

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Profit & Loss, research tools, market trends and analysis for educated and better investment decisions.Since trades are paperless, there is no question of losing data and this ensures sustainability goals as well.


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Cheaper

To the cost-conscious trader, the economic efficiency of online trading makes it top the merit list. Lower operating cost per trade is ensured through stock trading apps, on account of lower brokerage cost or through zero-fee trading houses. With no middle men involved, many app operated trading accounts may offer free security delivery, as well as concessional or flat fees on trading accounts, or as volume discounts. While Exchange levied fees,STT/CTT, Stamp fees, GST etc are obligatory, the competitive nature of online trading volumes, make it useful to shop around in choosing an app, in case of individual investors.

Monitor your investments anytime

Share market brokers and investors need to capitalize on the limited market hours and so they monitor prices in real time. With good connectivity, real time prices are captured in online trading 24 x 7. Timing is the key to profitability of investments and with online trading, there is a better chance to mark to market all securities, day and night and look out for timely warnings or signals to take profit. Further, first hand market information relating to invested Companies can be accessed with their credit profile, declared performances, future prospects, etc. All of this, gives the online trader a unique plus point, empowering him, whatever his work schedule may be.

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Eliminates the middleman

Share trading software and apps digitize transactions which were hitherto physical and time consuming, reducing his dependence on broker-driven transactions, thus cutting out the middleman and several legs of possible time delays. It also allows the trader to have a mind of his own and allows him to make his own individualistic decisions, getting better over time in personal finance and management of his portfolio.

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Investor has greater control

Lucrative trading gives better satisfaction when based on independent decisions. Online trading gives the investor a greater choice of decisions, after considering all available trading cues. You as a trader, will be able to initiate and cancel trades with Nil waiting time, from any space and time!

You are further at liberty to develop your own style of trading and your own control, risk mechanisms like limit loss etc. This makes you truly get the feel of being in the ‘driver’s seat’ of your portfolio vehicle. There can be no better way to improve confidence as an investor than having access to online, hassle-free trading!

Faster Transactions

The clear advantage that online trading adds is faster trading speed and faster settlement processes. This makes the process trouble-free, timely, advantageous for catching key trends and efficiently accurate. Further, online trading helps you harness the convenience of interfaces with other seamless software (demat accounts, banking accounts) which obviates the need to make broker calls, paper work, practical glitches like risk of signature mismatches and other regulatory risk areas.

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Better understanding of one’s money

Online trading acts as a necessary switch to taking the plunge into the Financial sea of volatile waves! Every independent trade enriches the investor’s wealth of practical expertise in working hard to be profitable and to take losses with equanimity and as part of the learning curve. Overall, online trading experience, hones investor’s skills of analysis and its feedback helps build a more robust and solid portfolio of assets.

Frequently Asked Questions

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Increased margin on trading due to best prices and lower cost of transactions

Retained profit share by avoiding cost erosion

Super convenient trading and universal access

Reduced error percentage through seamless process and

Self confidence and Rationality in trading

Is online trading a good idea?

There is no contesting if online trading is a good idea or not! But is it for everyone? This is a question best answered through introspection by each of you, before venturing into it. If a retail investor is able to take advantage of all the merits that online trading brings to the table such as, independence of thought and decision making, along with all the laborious processes it precludes… then, it does seem like a win-win situation.However, one must also take into account the downside that share trading software may sometime be challenged with, such as, security breaches, digital hacks or even time-outs in connectivity that may unfortunately leave the trader helpless in a crunch situation. Avoiding these pitfalls by choosing reputed share market brokers, carrying out due diligence before registering for this service and taking more than adequate care in guarding security information, will go a long way in using your trading acumen skillfully and profitably!

Can Online trading Make You Rich?

Given time, discipline and experience, every online trader has an even chance of making sustainable levels of money from the market. Additionally, clarity on :

Identification of tradeable markets/securities

Set of strategies, sufficiently back-tested

Defined timelines and entry/exit points

Resilience and capacity to learn a lesson

….all of these will enable an ideal mind-set to a successful trading track record!

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Day traders by definition assume Intraday positions (buy or sell) in the stock or forex markets, which they square within short periods of time in an opportunistic manner and definitively close all open positions, by day end.

A majority of Day traders would in all likelihood, work for large FIIs, Fund houses or Portfolio Managers. The small breed of individuals who get into day trading, are in effect battling the market against the might of the former, in terms of

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large volumes generated by the former

inadequacy of time needed for the predicted technical, fundamental or even the algorithmic strategies to develop and play out in a single day

sophistication of technological platforms, with split second reaction time, afforded by the former

trading costs which are variable ones.

Can you, the retail trader, still make money intraday? Yes, under meticulous control conditions, risk averse mindset, narrow bandwidth trades and a tight lock on your emotions.

You will surely sleep well at night… hey you don’t have any positions!

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