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Buying Stocks: Advantages and disadvantages of Online Share Trading.BY: David Prakash Kumar | Category: Business and Finance | Post Date: 2009-10-29
Share trading is a very high risk activity. People who buy equity or stocks can be of two categories. One group is the investor group and the other is the group that trades the market. The people who invest in the market do so, on a not so regular basis as they wait for the right opportunity and buy stocks. The traders on the other hand are a group of people who keep buying and selling stocks many times in one day. For these people who trade each day, the share prices that change each second is very important. It makes the difference between profit and loss. One of the advancements made in technology is the use of computers in share trading. There are many advantages of using online share trading methods. There are many companies that offer this service to their customers at a cost. There are many advantages of trading in the equity market through the internet. There are also a few disadvantages. Advantages of share trading through computers: 1. Easy: It is very easy to trade by purchasing and selling shares through the internet. The trader is able to watch the live price of the share as it is being traded and the trader can purchase or sell the shares. There is no need to depend on the brokers for buying or selling shares. 2. Quicker: When you trade shares through the trader, it can cause a lot of difficulties. The phone lines may be busy and by the time you are able to reach your broker, the price may have changed making you buy or sell at a loss. This is not present in trading online as you can watch the price and then trade. 3. Cheaper: It also works out cheaper to trade through the computer because you save on the phone bills and also on the commission that you pay to the brokerage. This is because all the online trading companies charge a lesser rate than the regular brokers. Disadvantages of share trading through computers: 1. Internet delay: When you trade through the internet terminal, the main problem that can occur is that the internet may stop working suddenly due to many reasons or your computer may have some problems and then it becomes difficult to trade through the internet. 2. Bank balance: When you trade through a broker, sometimes if you know the person well, you can pay the broker the day after the transaction was made. This is not the case when you trade through the internet. This internet trading account is usually connected to your bank account and only when you have sufficient balance, will you be able to trade. These are the many advantages and disadvantages of trading through the internet. Various factors come into play when one decided to trade wither through the traditional method or through the internet. It depends on the connectivity and also on the speed of the computer. Whichever method benefits the trader should be chosen as the method of trading on the equity market. Article Source: http://www.saching.com About Author / Additional Info: I am a physiotherapist and also a freelance writer. I have been writing for many blogs and websites and also take up freelance assignments. Comments are welcome at prakashdavid@rediffmail.com Additional Articles: * Diet after Surgery: Important diet aspects to be remembered after an operation? * Simple ideas to reduce snoring * Are Tech Decks a waste of time and money. Finger board skateboards. * Reservation in India. Caste based reservation in Jobs and Education * Jealousy in Relationship Does this article violate or infringe on your copyright ? It is a violation of our terms for authors to submit content which they did not write and claim it as their own. If this article infringes on your copyrights, then use our Contact us form with the detailed proof of infringement along with the offending article's title, URL and writer name. If you do not hear back from us then contact us again in another 10 days. Thank you. Comments on this article: (0 comments so far) * Additional comments are now closed for this article *
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