A lot of people win their bread daily from the financial securities market. Daily trading is the bread and butter source for many. These traders might be well settled individuals who have been in this business for years. Or there might be hedge funds or investment bankers lurking around. Trading takes place online in the world of today. Making trades by telephones or by chits are a thing of the past. Online stock trading is convenient, fast and many other things. There are a lot of online brokerage firms on which an account can be created and trading can be done very easily.
The math of making money in stock market is really very simple:
Rahul buys 20 shares of a company X at the rate of ₹40/share. Suddenly the price started increasing vociferously and Rahul decided to sell the share. At the time of selling price was ₹70/share. So the profit made here by Rahul is the price at which he sold minus at the price which he bought.
So ₹70 – ₹40 = ₹30/share. So this is the profit that he registered per share. Given that he owns 20 such shares, the net profit that he made is ₹30 × 20 = ₹600, in all. So Rahul made ₹600 just by sitting at home. This ₹600 includes some minor deductions in the name of brokerage fees.
Advantages of online trading:
Convenience: Online trading can be pursued from the comfort of home. The trader does not need to be at the stock exchange to make the bids. Trade can be made as long as internet is available. There is also no limit to time, even if the market is closed the bids shall be accepted and executed as soon as the market opens.
Economical: Online trading also proves to be quite economically advantageous. Here the brokerage fee is considerably lower than the traditional method. If trades of considerably large volumes of shares are done then the brokerage fees can also be negotiated. This saves a lot of money when trading on very big amounts.
Money understanding: With real time market position and statistics online trading becomes indispensable. After having a certain amount of experience even the newbies are able to predict the rise and fall of some shares up to some extent. This instils experience in the traders and increases their familiarization with the market.
Having this skill can come in handy while applying for a finance profile role.
Quick transactions: With the advent of online trading most of the work has shifted to computers and the internet. Also since banking services are also available on the internet now, this all has pushed the process of trading effectively very ahead. Shares can now be bought and sold at merely some clicks of mouse. Quicker transactions ensure proper passing on of money.
Online trading has completely revolutionized the world of the financial securities market. The very dynamics have changed to a very large extent. Processes have become more efficient and faster than ever. Security is also more effective now. If you want to experience this thrill of trading you need to open a demat account. You can open your demat account with 5paisa.