By Vijay Kumar Sharma
In this computer era when everything is going online, even you get the facility of buying stocks online. To facilitate you buying stocks online, there are several online stock exchanges available now days. Buying stocks online is gaining ground now days as it saves you from the hassles of visiting the stock exchange and making your transactions physically. Even the procedure of getting registered in online stock exchange is much simpler. You could easily set up your account by just registering with the online stock exchange and attaching your valid bank account with your registration form. After that your account will be verified and once your account is verified you could easily start trading stocks immediately. Online stock trading facilitates you to buy stock yourself or involve broker for your online trading. There are mainly four types of online brokers available today. They are discount brokers, discount brokers with assistance, full- service brokers and money managers. With the help of online brokers you can instantly buy or sell your stock with just few clicks of your mouse.
The discount brokers are mere order takers and they do not render any advice regarding your investments in stocks. This is the least expensive mode and you just need to pay on the basis of per share transaction. This facilitates you to open your account with relatively very little amount. The discount brokers are especially helpful for those who want to do trading individually, without taking advice of any stock broker and want to keep their investment low. The discount brokers with assistance charge you more than the discount brokers as they provide you with information such as in-house research and reports about the financial market to help you in your investment. The other category of online brokers is full-service brokers who analyze every aspect of your investment and develop a plan for gaining high profits from your investment. They even help you with tax advice and retirement planning. People involved in big investment generally prefer full service brokers and these brokers charge a handsome amount for their services. Money managers are also online stockbrokers but unlike other types of online stockbrokers they take full discretion over their clients' account. People who are involved in substantial investments and do not find enough time to manage it generally hire the money managers' services. These managers manage large portfolios and their fee is based on the assets under their management rather than per transaction. These money managers give complete freedom to their clients to look after their other businesses and for this they charge a hefty amount.
Buying stocks online is considered a high-risk investment. So you should be very careful with your investments. You should not be influenced by the rumors spread about certain stocks and use your intellect to analyze the market situation before investment. You should always buy stocks of different companies so that your investment is diversified. This enables you to remain in profit even when the market is witnessing a slump. You should always buy stocks online after analyzing the growth prospect as well as past performance of the company. Online stock trading gives you the facility of instant buying and selling your stocks, so you should be always be on your toe and sell your stock instantly if you sense that the stock prices are going to fall further. Online stock trading also facilitates you easier day to day trading. This helps you to make short-term investments and sell your stock instantly on a marginal profit rather than waiting for large boom. The most important thing in online trading is that you need to curb your humanistic instinct of waiting for bigger gains. It is due to the fact that stock market is highly volatile and your wait for higher returns may jeopardize even your invested money. So be wise and sell your stock when you think that the stocks have come to their optimum level.
Buying stocks online is considered a high-risk investment. So you should be very careful with your investments. You should not be influenced by the rumors spread about certain stocks and use your intellect to analyze the market situation before investment. You should always buy stocks of different companies so that your investment is diversified. This enables you to remain in profit even when the market is witnessing a slump. You should always buy stocks online after analyzing the growth prospect as well as past performance of the company. Online stock trading gives you the facility of instant buying and selling your stocks, so you should be always be on your toe and sell your stock instantly if you sense that the stock prices are going to fall further. Online stock trading also facilitates you easier day to day trading. This helps you to make short-term investments and sell your stock instantly on a marginal profit rather than waiting for large boom. The most important thing in online trading is that you need to curb your humanistic instinct of waiting for bigger gains. It is due to the fact that stock market is highly volatile and your wait for higher returns may jeopardize even your invested money. So be wise and sell your stock when you think that the stocks have come to their optimum level.
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