Technology And Online Stock Trading, BSE And NSE Trading Overview

It is technology that has simplified working processes. Countless complex tasks have been simplified to the greatest extent. It applies to the stock market as well encompassing not only the Indian market but also world markets. Today, if you have an online stock trading account for BSE or NSE trading, you can trade anytime during trading hours no matter whether you are within the country or in a remote corner of the world. While in the past, the transactions that took place took time and involved manual records, today transactions happen in seconds which are electronically recorded. What more can you ask for when you can view the live stock market with only a few clicks of the mouse anytime anywhere!

The National Stock Exchange pioneered the concept of online stock trading in India. The process is then followed by the other bourses. The potential of IT in the NSE and BSE stock market is huge. It is because of the developments in information, communication and network technologies that more and more investors are attracted towards investing in many an NSE and BSE stock. The lucrativeness factor would not have witnessed nascence had there been no online stock trading.

It is this very development of technology that the National Stock Exchange exploits to facilitate easy NSE trading to the advantage of the investors. The bourse uses satellite communication technology to strengthen participation from around 200 cities spread across India. The problem of increased users and associated trading loads is thus negated. The softwares and hardwares used are upgraded from time to time in sync with the latest trends and developments. Today, the National Stock Exchange has a capability to handle over 15 million trades per day in the capital market. The IT related assignments of NSE are handled by NSE Infotech Services Ltd., an NSE offshoot.

How does NSE trading take place? Well, traders of the NSE market are connected through a PC located in the trading member’s office. Diverse market segments encompassing CM, Currency Derivatives, SLBM, F&O, WDM, MF, and IPO are covered which are linked to the central computer at the NSE through VSAT terminals and dedicated leased lines. The National Stock Exchange happens to be one of the world’s largest interactive VSAT based stock exchanges. There are over 3000 NSE leased lines and 2500 plus VSATs across the country. For more information on the NSE or to have a glimpse of the NSE live stock market, you may visit its corporate site.

If you are trading in the BSE stock market, you are involved in trading via Asia’s oldest stock exchange, i.e. BSE that witnessed nascence 135 years ago. No matter whether you are involved in NSE trading or BSE stock trading, you will have to consider all factors involved because both platforms involve risks. It is according to market trends that stocks perform. Do stay updated with the live stock market to experience a win-win situation.

Online Stock Trading – Stock Trading Strategies

The ease of online stock trading draws the attention of new investors and investors looking for an alternative to the old methods of trading. With little more than an account and a mouse fortunes can be made or lost from the privacy of one’s own home. However, before getting carried away, investors should look into the basics of stock trading strategies to help protect themselves from what can be a very tempting albeit confusing world of internet stocks.

The only consistent notion about stocks is that they are inconsistent. Investors that make decisions based entirely on emotional “gut feelings” or make decisions based on desperation will only do about as well as they will at the casino. Planned, precise, and well thought out decisions make for strong trades. Online stock trading need not be a random roll of the dice.

Regardless of any pre-planned strategy that an online investor approaches the online trading world with, there are two basic entities that need to built into any strategy. All trading is based on maximizing the profits while minimizing the risks. These two factors also tend to cancel each other out. The greatest risks usually turn the greatest profits while the smallest risks typically turn tiny but long term profits. This means that an individual investor needs to find their individual risk tolerance while building their strategy.

There will be losses. There’s no strategy in the world that can guarantee online stock trading without loss. Loss is part of the game no matter how serious the player. The most successful online stock traders in the world have one basic rule implemented into their trading strategy. They all have their stock portfolio divided into percentages. They have a predetermined percentage seeking high risk, high return stocks, a predetermined percentage seeking medium risk, medium return stocks, and a predetermined percentage seeking low risk, low return stocks. The predetermined percentages vary from investor to investor and some have the bulk of their percentages in low risk while others have the bulk in medium risk. Placing the bulk of the available funds in high risk stocks is a sign of either gambling or desperation, neither one is considered a very sound strategy.

The reason that these percentages are predetermined for the vast majority of successful online investors is to help maintain unemotional investing. If there is a set amount of the available funds doing predetermined job, then the emotional windfalls and shortcomings are incapable of moving the percentages around. Online stock trading can become emotional, and when it does online traders start making bad decisions based on their emotions. Keeping the emotional trading to a nonexistent minimum is very difficult for many online traders, but it is also on of the best laid online stock trading strategies there is.

Every individual investor’s strategy will vary to suit their needs, their risk tolerance, and their individual style. However, having a basic strategy before the account is even opened is a vital key to online stock trading []. Investors without a strategy tend to lose more often than they succeed. Every individual investor’s emotional strings are different, and some will need firmer, more complicated rules before setting off into the online investment world. Others will do fine with a basic outline. While learning the ropes, it is best to dabble with small sums of money rather than place large chunks of money into any stock, no matter how good it seems. One of the most significant pros to online stock trading is the investor’s ability to go through the motions on paper without ever spending a dime while they keep an eye on the stocks they believe they are interested in. Over time, online stock trading can become a very healthy form of secondary or even primary income, but the investor has to start with a plan.

Online Stock Trading

Online Stock Trading Gives You A Freedom Of Trade

A few years ago, stock market was the last considerable option of investment for those who were not professional stock traders. However, the concept has rapidly got popular and so many factors have been instrumental for the popularity of the online trading. Here are the advantages of doing online stock trading:

Lower Brokerage – The best thing about online stock investing is that the brokerage commission rate is significantly lower than the traditional way of trading stock. Moreover, there are some online stockbrokers who offer a fixed amount for every transaction irrespective of the volume of stocks. So, you can gain effectively if you buy and sell stocks in huge volumes.

Real Time Stock Trading – With online trading you can buy and sell stocks in the real time. You can buy and sell stocks with just a few clicks. Your orders will be executed real time and you will be able to check the changes in your account in no time. So, online stock trading is extremely transparent and you are the master of your own.

No Middleman – When you deal in online stocks, there is no middleman involved in the process so you can do everything by your own. The selling decision, buying or holding the stocks are completely your decision. You execute the commands on the terminal and do the trading. There is no broker and middleman involved so no shady deals are done.

Less Paper Work – There is no paper work involved when you buy or sell stocks online. Everything is done online, a few clicks are what you need to do and then you are done with the trading.

Diversified Options – Whether you do day trading or make long-term investments, online brokerage will give you wide range of trading stock options. Those online brokers offer varieties of options for trading, they operate in more stock exchanges and you have plenty of options when it comes to opening an account for online stock trading. So, just log in to any stock broking website and choose the option that caters to your requirements.

Analysis and Consultancy – Most of these online stock brokers have extensive analysis and research facility and they provide regular tips and suggestions for investing in the stocks. These services are very much effective for those who are not capable of keeping track of the stock market everyday. The consultancy services help them choose the right stocks that will get them maximum profit. Therefore, when you choose your online stock broker, please make sure they will provide you with the consultancy service and do it without charging you anything.

To get this benefit and to make the most out of your stock investment, you have to find our trustworthy and experienced online stock broker. There are plenty of online stockbrokers offering really great solutions with attractive brokerage rates. All you need to do is to select one and open an account with them and then you can start to make your online stock market trading.