C.S.P 2nd SamOnline Trading

8/12/2019 C.S.P 2nd SamOnline Trading

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Shubham rawal

S.D.T. kalani college,

S.Y.B.com,

Roll no. 47,

Sub.- C.S.P.

Checked by___________


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ontents

IntroductionWhat is online trading or Internet Trading?Definition of 'Online Trading'Brokers and Online TradingOnline Trading article by TradeTrek.comConclusion
http://adrun.tradetrek.com/banner/adban.asp?kid=1951019&bid=17http://adrun.tradetrek.com/banner/adban.asp?kid=1951019&bid=17


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Introduction

What is online trading or Internet Trading?

Online Trading is a service offered on the internet for purchase and sale

of shares. In the real world, you place orders on your stockbroker either

verbally (personally or telephonically) or in a written form (fax). InOnline Trading, you will access a stockbroker's website through your

internet-enabled PC and place orders through the broker's internet-

based trading engine. These orders are routed to the Stock Exchange

without manual intervention and executed thereon in a matter of a few

seconds.

The shares can be traded on Mumbai Stock Exchange and National

Stock Exchange while commodities can be traded on NationalCommodity & Derivative Exchange, Multi Commodity Exchange and

National Multi Commodity Exchange.

There is nothing more exhilarating, more daring and more rewarding

than making the right trade at the right time. Welcome to our online-

trading platform which brings you a world class experience of online

investing. Buying and selling of shares is now just a click away throughdiet ODIN.


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DefinitionThe act of placing buy/sell orders for financial securities and/or

currencies with the use of a brokerage's internet-based proprietary

trading platforms. The use of online trading increased dramatically in

the mid- to late-'90s with the introduction of affordable high-speed

computers and internet connections.

Stocks, bonds, options, futures and currencies can all be traded online

Online Trading

Brokers share the undesirable reputation of lawyers, bankers andaccountants. They earn a living by selectively sharing knowledge that

the general public can't easily access. But, like it or not, they are the

individual investor's direct link to Wall Street. Although technology and

the internet have made it easier for individual investors to take control

of theirportfolios,the basic rule still applies: you need some kind of

broker if you want to trade stocksandbonds.

In any profession, you will find people who take advantage of thosewho aren't in the know. Whenever you buy something, there is the

possibility of being cheated. Furthermore, with a broker you purchase

advice, which is hard to price. But not all brokers fit the swindler

stereotype. In fact, there are many brokers who do a phenomenal job

of guarding their clients' interests. There are also manydiscount
http://www.investopedia.com/terms/p/portfolio.asphttp://www.investopedia.com/terms/p/portfolio.asphttp://www.investopedia.com/terms/p/portfolio.asphttp://www.investopedia.com/terms/b/bond.asphttp://www.investopedia.com/terms/b/bond.asphttp://www.investopedia.com/terms/b/bond.asphttp://www.investopedia.com/terms/d/discountbroker.asphttp://www.investopedia.com/terms/d/discountbroker.asphttp://www.investopedia.com/terms/d/discountbroker.asphttp://www.investopedia.com/terms/b/bond.asphttp://www.investopedia.com/terms/p/portfolio.asp


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brokeragesthat provide remarkable services for a reasonable price.

It's up to you to pick the broker that meets your needs. This tutorial will

go over some important factors to consider when making the choice.

If you are new to the market and don't have a solid understanding of

the various securities, check out theStock Basics,Bond Basicsand

Mutual Fundstutorials.

Online trading has become the standard method for buying and selling

stocks for many people, especially those who have only gotten into themarket since the rise of the Internet. The ease and rapidity of online

trading allow investors to make decisions regarding stock trading in a

manner that forgoes the careful calculation and deliberate analysis of

data that had been the standard trading methodology
http://www.investopedia.com/terms/d/discountbroker.asphttp://www.investopedia.com/terms/d/discountbroker.asphttp://www.investopedia.com/university/stocks/http://www.investopedia.com/university/stocks/http://www.investopedia.com/university/stocks/http://www.investopedia.com/university/stocks/http://www.investopedia.com/university/bonds/http://www.investopedia.com/university/bonds/http://www.investopedia.com/university/bonds/http://www.investopedia.com/university/mutualfunds/http://www.investopedia.com/university/mutualfunds/http://www.investopedia.com/university/mutualfunds/http://www.investopedia.com/university/bonds/http://www.investopedia.com/university/stocks/http://www.investopedia.com/terms/d/discountbroker.asp


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Online Brokerso Online trading is not the same thing as trading without a broker.

Registering with an online broker is, therefore, the first step ingetting involved in trading stocks from the comfort of your living

room or office. The most popular online brokers include E-Trade,

Ameritrade and Charles Schwab, but there are many others from

which to choose. The use of a online broker is necessary for the

proper management of the both the money and the stock in your

account.

Requirementso Most online brokerages require that investors keep a minimum

investment before they can begin trading on the stock market.

The minimum amount required to open an account will vary from

broker to broker. Once this amount has been deposited and you

have conducted your first online trade, many brokerages will then

insist upon your keeping a minimum balance in the account,although it is possible to find some online brokers that do not

have this minimum requirement.

Feeso Online traders use their accounts for a variety of different trading

methodologies. "Daytrader" is the name given to those who will

be trading stocks on perhaps a daily basis. Others, however, may

just buy one or two stocks and hold on to them for a long period

of time. Online brokers should be checked for fees related to

making numerous trades, as well as fees related to account


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inactivity. Depending on the type of trader you foresee yourself

becoming, determine what kinds of fees the broker enacts.

o

Expert Adviceo One fee that may be avoidable is an extra charge for getting

expert advice. Some online brokers do not even offer expert

insight, and are usually the most inexpensive to deal with. On the

other hand, you may be saving money in fees but losing money by

investing in unwise stock choices. It may be worth the extra fees

to get statistical analysis of the kind you cannot get on your own.

o

Other Serviceso Some brokers allow you to do many more things than simply

buying and selling stocks. The bigger and better-known online

trading sites are actually more like banks, offering such services as

mortgage loans, credit and debit cards, money market funds and

even the potential for investing in bonds and futures trading.

o

Benefitso The biggest benefit of online trading over traditional stock trading

is that it can be done with real-time knowledge of prices. Most

people are familiar with those old-time stock tickers that

produced ticker tape; the stock prices those tickers producedwere usually around 15 minutes old. Today's online trading can be

done almost instantaneously, using stock prices that are as up-to-

date as possible.

o


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Online TradingThe Internet revolution has been changing the fundamentals of our

society. It shapes the way we communicate and the way we dobusiness. It brings us closer and closer to vital sources of information. It

provides us with means to directly interact with service-oriented

computer systems tailored to our specific needs; therefore, we can

serve ourselves better by making our own decisions. This prevailing

shift of the business paradigm is reshaping the financial industry and

transforming the way people invest.

In the following discussion, we will briefly explain how the Internet hasbeen changing the way people trade stocks, and we will introduce some

of the pros and cons of using online brokerage companies. Then we will

look at some of the trading styles people practice and introduce an

important trading technique that a lot of professional traders have

been using with great success. Finally, you will learn how

Tradetrek.com can help you apply these trading techniques online with

trading tools that make online trading easy, fun, profitable, and

understandable!

In the old days, because of the limitations of communications

technology, Wall Street was the center for most of the Stock Exchange

and Brokerage firms. Today, at this millennial transition, investors can

use revolutionary Internet Client-Server technology to trade stocks

nearly anywhere, anytime, independent of brokers' fees and servicelimitations.

This new access by the trading public to low-cost transactions and

cutting-edge, real-time market information that formerly belonged only

to brokers has opened up extraordinary new investment opportunities


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as well as a crucial need for state-of-the-art information. It is exactly

these new-market investment services that Tradetrek.com specializes

in satisfying.

JumpingLearning to use the new online trading tools provided by brokerage

houses may take very little time. In only a couple of mouse clicks, you

can make thousand-dollar transactions in a matter of seconds. Modern

technology in hand, you have total control over the money you are

investing, which really gives you the tools and confidence to beat the

S&P Index!

There are a number of brokerage.coms out there, such as Ameritrade,

DLJdirect, SureTrade, Datek, Charles Schwab, E-Trade, just to name a

few. As a result of a price war between these companies, the

commissions that these companies charge per trade have dropped

significantly. For example, Datek charges $9.99 per trade, Ameritrade

$8, and SureTrade only $7.95. But you need to keep in mind that priceis not the only factor in choosing a service. You also have to consider

how frequently you trade, what other services you might be interested

in, how reliable the trading system is, whether it is hard to log on when

the market is active, and quite a few other variables.

In order to attract more users, many online brokers continually upgrade

their systems to allow more log-ons simultaneously; they may also offer

new value-added services such as company news releases, earningreports, and market commentary.


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TruthMomentofMarketOkay, then. Imagine that now you know exactly what to do: Buy a

computer. Sign up with AOL. Find an online broker. Deposit an initialsum of money. Now you're in! And at the brink of your first trading

moment, your hands sweating, heart racing, you hear yourself asking,

"Am I really ready?"

The Need to Know

Wait, then: you might not be quite ready. Not yet! Estimates show that

more than 80% of all online investors lose money at the outset. While

you know that a great number of portfolio holders have realized great

profit--for some of them, even fortunes--you realize that to be a winner

you first need to exercise prudent judgment to join that 20% who really

are successful. Perhaps you haven't yet realized quite what you are

facing now that you've gotten rid of the commission-swallowingmiddlemen (Wall Street brokers and expensive financial advisers). You

are on your own. And sorting through hundreds of websites for stock

tips, market updates, and company profiles, who wouldn't feel

overwhelmed! Perhaps in this vast universe of digital feed, you realize

more sharply than ever that you lack clear strategies for evaluating

market possibilities of the thousands of stocks out there. You

constantly hear stories of stocks that break the trading range, reach an

all-time high, and then, before you have time to act, slide 30 points intwo days. By the time you get the news you are too late to capitalize!


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Information Tools Make All theDifference!

While you sense the promise and enjoy the excitement of modern

technology, like so many others, you probably feel overwhelmed,

frustrated, even lost at the prospect of putting your savings online, on

the line. Certainly none of the skills crucial to sizing up the market are

intuitive; therefore, in order to see what is really going on, and to

become a successful investor, you are going to have to learn about the

market's state-of-the-art trading techniques and strategies.

Type of investingDifferent people trade in different styles. There are long-term investors

who buy stocks and hold for a year or two. Mid-term investors may buy

and hold stocks from thirty days to six months. Short-term traders

trade frequently, on a weekly basis. And finally, day traders buy and sell

every day. Now, assuming you make good decisions, the more

frequently you trade, the more profit you gain. But what style is right

for you? Which stocks should you choose and how long should you hold

them? Some investors like companies with strongest earnings. Those

who like to invest in big blue-chip companies are not willing to bet on

startups. Other players examine company financial statements and

balance sheets, picking only those with low debt ratio, high cash flow,

and high profit margin.

More sophisticated players (this brings us closer to Tradetrek.com!)

behave differently. They scrutinize stock charts, looking for hidden

trading signals that may reveal a major opportunity. They understand a

cardinal element in how to make money in the stock market: Buy the


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right stock at the right time! Of course, this is more easily said than

done. Capturing the right moment to buy and sell requires certain

techniques called technical analysis (TA). To put it simply, TA is a set of

techniques analysts use to spot revealing stock patterns in advance.

The principles underlying technical analysis have proven successful in

dealing with all financial markets. Applying these techniques in online

trading, then, is essential to discovering a winning investment position,

whether you are a long-term, mid-term, or short-term trader.

Technical Analysis is so important that almost no investor can trade

successfully without it. Fortunately, Tradetrek.com has now come up

with an innovative paradigm to put real-time technical analysis tools

online. Scientists at Tradetrek are now applying newly developedartificial intelligence, neural network, and pattern-recognition

technologies to real-time technical analysis among hundreds of stocks.

By taking advantage of Tradetrek'sIntelliChart, you won't have to spend

hours upon hours going through thousands stocks in hopes of finding a

sound and promising performance pattern. IntelliChart conducts real-

time searches for more than a dozen technical analysis patterns and

presents you with the most profitable stocks among thousands of

stocks being traded. Under each chart, a detailed explanation

generated automatically by Artificial Intelligence helps advise you on

what course of trading action to take.


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ConclusionThe use of online trades has increased the number of discount

brokerages because internet trading allows many brokers to further cutcosts and part of the savings can be past on to customers in the form of

lower commissions.

Another benefit of online trading is the improvement in the speed of

which transactions can be executed and settled, because there is no

need for paper-based documents to be copied, filed and entered into

an electronic format.


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Bibliography :

This information is collect from following sight

Wikkipedia

BSE

NSE

Thank you !!

C.S.P 2nd SamOnline Trading

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