Over the past 10 - 15 years, there have been many changes to the stock markets around the world, but none have the far reaching benefits and convenience for stock market traders as Online Stock Market Trading. It seems that most traders these days have taken that leap of faith, into the internet age that we live in, and fully embraced Stock Trading Online.
I can still distantly remember the days of calling my stock market broker by telephone to purchase some stock, then waiting for the call back to know if I managed to buy them for the price I wanted. There is good reason as to why we have progressed from days, but before we get into the benefits of Online Stock Market Trading...
Just a word of caution...
Although Online Brokers go to great lengths to ensure secure online transactions, there are some security precautions you should take to ensure your brokerage account is not tampered with. So here are a few tips to ensure you don't have any unwanted surprises:
- Keep your Login ID and Passwords secure, never disclose it to anyone. It is your responsibility.
- Avoid saving your Login details in your browser so they're remembered every time you login.
- Check that your Broker uses a 128-bit Encryption, as its the safest. Most do, but its worth checking.
The Benefits of Online Stock Market Trading
Low Cost of Stock Trading Online
With the introduction of online stock trading, this has meant that Stock Market Brokers have been able to reduce their operating cost. Coupled with the increasing popularity amongst traders & broker competition, has meant those saving have been passed on to Traders, in the form of reduced commissions. So these days, the brokerage rate and the efficiency of order execution are important points to keep in mind while choosing a Online Trading Broker.
Instant Update of Stock Prices and Charts.
Now that we live in the internet age, we can now be anywhere, and be updated with information in an instant, especially with technology advancements in mobile devices such as the Iphone, Ipad & smartphones.
Stock Investing Online is no different, with instant updates of all shares prices, charts and information. You can enter and confirm an order, and within seconds it can be executed, and you will be notified in your account and via email, of all the details of the transaction. Compare that to an off-line trading system, and you could be waiting for more than 24 hrs.
There is all sorts of other information that is updated instantly, that might be of interest to a Stock or Option Trader intraday. For example a live profit/loss update of all your positions and account is a popular piece of information we simply take for granted these days. An option trader also knows the advantages of getting instant information at his/her finger tips, like knowing the intrinsic value of an option for example.
Highly Customizable Order Execution.
Online Share Market Trading is also high customizable when it comes to order execution and modifying existing orders. Apart for being able to setup your standard Market Orders, Limit Orders, Stop Loss, Stop Limit Orders, Market if Touched & Limit if Touched Orders, you can set slightly more complicated orders to get your desired effect.
You can set up One Triggers the Other, One Cancels the Other, One Triggers Two Orders, Multi-leg Option Orders and one of my favorites is setting my stops to be active only at or just before the days close, to prevent being whipsawed by intraday price action noise. This really comes in handy if you are an end of day trader, so you can set and forget your orders, having the piece of mind that you have an order ready to execute, should your order conditions become true.
So there you have it 3 great reason why Online Stock Market Trading rocks, and how you make your Online Trading experience a good one! Happy Trading.