c.s.p 2nd samonline trading
TRANSCRIPT
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Shubham rawal
S.D.T. kalani college,
S.Y.B.com,
Roll no. 47,
Sub.- C.S.P.
Checked by___________
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ontents
IntroductionWhat is online trading or Internet Trading?Definition of 'Online Trading'Brokers and Online TradingOnline Trading article by TradeTrek.comConclusion
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Introduction
What is online trading or Internet Trading?
Online Trading is a service offered on the internet for purchase and sale
of shares. In the real world, you place orders on your stockbroker either
verbally (personally or telephonically) or in a written form (fax). InOnline Trading, you will access a stockbroker's website through your
internet-enabled PC and place orders through the broker's internet-
based trading engine. These orders are routed to the Stock Exchange
without manual intervention and executed thereon in a matter of a few
seconds.
The shares can be traded on Mumbai Stock Exchange and National
Stock Exchange while commodities can be traded on NationalCommodity & Derivative Exchange, Multi Commodity Exchange and
National Multi Commodity Exchange.
There is nothing more exhilarating, more daring and more rewarding
than making the right trade at the right time. Welcome to our online-
trading platform which brings you a world class experience of online
investing. Buying and selling of shares is now just a click away throughdiet ODIN.
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DefinitionThe act of placing buy/sell orders for financial securities and/or
currencies with the use of a brokerage's internet-based proprietary
trading platforms. The use of online trading increased dramatically in
the mid- to late-'90s with the introduction of affordable high-speed
computers and internet connections.
Stocks, bonds, options, futures and currencies can all be traded online
Online Trading
Brokers share the undesirable reputation of lawyers, bankers andaccountants. They earn a living by selectively sharing knowledge that
the general public can't easily access. But, like it or not, they are the
individual investor's direct link to Wall Street. Although technology and
the internet have made it easier for individual investors to take control
of theirportfolios,the basic rule still applies: you need some kind of
broker if you want to trade stocksandbonds.
In any profession, you will find people who take advantage of thosewho aren't in the know. Whenever you buy something, there is the
possibility of being cheated. Furthermore, with a broker you purchase
advice, which is hard to price. But not all brokers fit the swindler
stereotype. In fact, there are many brokers who do a phenomenal job
of guarding their clients' interests. There are also manydiscount
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brokeragesthat provide remarkable services for a reasonable price.
It's up to you to pick the broker that meets your needs. This tutorial will
go over some important factors to consider when making the choice.
If you are new to the market and don't have a solid understanding of
the various securities, check out theStock Basics,Bond Basicsand
Mutual Fundstutorials.
Online trading has become the standard method for buying and selling
stocks for many people, especially those who have only gotten into themarket since the rise of the Internet. The ease and rapidity of online
trading allow investors to make decisions regarding stock trading in a
manner that forgoes the careful calculation and deliberate analysis of
data that had been the standard trading methodology
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Online Brokerso Online trading is not the same thing as trading without a broker.
Registering with an online broker is, therefore, the first step ingetting involved in trading stocks from the comfort of your living
room or office. The most popular online brokers include E-Trade,
Ameritrade and Charles Schwab, but there are many others from
which to choose. The use of a online broker is necessary for the
proper management of the both the money and the stock in your
account.
Requirementso Most online brokerages require that investors keep a minimum
investment before they can begin trading on the stock market.
The minimum amount required to open an account will vary from
broker to broker. Once this amount has been deposited and you
have conducted your first online trade, many brokerages will then
insist upon your keeping a minimum balance in the account,although it is possible to find some online brokers that do not
have this minimum requirement.
Feeso Online traders use their accounts for a variety of different trading
methodologies. "Daytrader" is the name given to those who will
be trading stocks on perhaps a daily basis. Others, however, may
just buy one or two stocks and hold on to them for a long period
of time. Online brokers should be checked for fees related to
making numerous trades, as well as fees related to account
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inactivity. Depending on the type of trader you foresee yourself
becoming, determine what kinds of fees the broker enacts.
o
Expert Adviceo One fee that may be avoidable is an extra charge for getting
expert advice. Some online brokers do not even offer expert
insight, and are usually the most inexpensive to deal with. On the
other hand, you may be saving money in fees but losing money by
investing in unwise stock choices. It may be worth the extra fees
to get statistical analysis of the kind you cannot get on your own.
o
Other Serviceso Some brokers allow you to do many more things than simply
buying and selling stocks. The bigger and better-known online
trading sites are actually more like banks, offering such services as
mortgage loans, credit and debit cards, money market funds and
even the potential for investing in bonds and futures trading.
o
Benefitso The biggest benefit of online trading over traditional stock trading
is that it can be done with real-time knowledge of prices. Most
people are familiar with those old-time stock tickers that
produced ticker tape; the stock prices those tickers producedwere usually around 15 minutes old. Today's online trading can be
done almost instantaneously, using stock prices that are as up-to-
date as possible.
o
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Online TradingThe Internet revolution has been changing the fundamentals of our
society. It shapes the way we communicate and the way we dobusiness. It brings us closer and closer to vital sources of information. It
provides us with means to directly interact with service-oriented
computer systems tailored to our specific needs; therefore, we can
serve ourselves better by making our own decisions. This prevailing
shift of the business paradigm is reshaping the financial industry and
transforming the way people invest.
In the following discussion, we will briefly explain how the Internet hasbeen changing the way people trade stocks, and we will introduce some
of the pros and cons of using online brokerage companies. Then we will
look at some of the trading styles people practice and introduce an
important trading technique that a lot of professional traders have
been using with great success. Finally, you will learn how
Tradetrek.com can help you apply these trading techniques online with
trading tools that make online trading easy, fun, profitable, and
understandable!
In the old days, because of the limitations of communications
technology, Wall Street was the center for most of the Stock Exchange
and Brokerage firms. Today, at this millennial transition, investors can
use revolutionary Internet Client-Server technology to trade stocks
nearly anywhere, anytime, independent of brokers' fees and servicelimitations.
This new access by the trading public to low-cost transactions and
cutting-edge, real-time market information that formerly belonged only
to brokers has opened up extraordinary new investment opportunities
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as well as a crucial need for state-of-the-art information. It is exactly
these new-market investment services that Tradetrek.com specializes
in satisfying.
JumpingLearning to use the new online trading tools provided by brokerage
houses may take very little time. In only a couple of mouse clicks, you
can make thousand-dollar transactions in a matter of seconds. Modern
technology in hand, you have total control over the money you are
investing, which really gives you the tools and confidence to beat the
S&P Index!
There are a number of brokerage.coms out there, such as Ameritrade,
DLJdirect, SureTrade, Datek, Charles Schwab, E-Trade, just to name a
few. As a result of a price war between these companies, the
commissions that these companies charge per trade have dropped
significantly. For example, Datek charges $9.99 per trade, Ameritrade
$8, and SureTrade only $7.95. But you need to keep in mind that priceis not the only factor in choosing a service. You also have to consider
how frequently you trade, what other services you might be interested
in, how reliable the trading system is, whether it is hard to log on when
the market is active, and quite a few other variables.
In order to attract more users, many online brokers continually upgrade
their systems to allow more log-ons simultaneously; they may also offer
new value-added services such as company news releases, earningreports, and market commentary.
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TruthMomentofMarketOkay, then. Imagine that now you know exactly what to do: Buy a
computer. Sign up with AOL. Find an online broker. Deposit an initialsum of money. Now you're in! And at the brink of your first trading
moment, your hands sweating, heart racing, you hear yourself asking,
"Am I really ready?"
The Need to Know
Wait, then: you might not be quite ready. Not yet! Estimates show that
more than 80% of all online investors lose money at the outset. While
you know that a great number of portfolio holders have realized great
profit--for some of them, even fortunes--you realize that to be a winner
you first need to exercise prudent judgment to join that 20% who really
are successful. Perhaps you haven't yet realized quite what you are
facing now that you've gotten rid of the commission-swallowingmiddlemen (Wall Street brokers and expensive financial advisers). You
are on your own. And sorting through hundreds of websites for stock
tips, market updates, and company profiles, who wouldn't feel
overwhelmed! Perhaps in this vast universe of digital feed, you realize
more sharply than ever that you lack clear strategies for evaluating
market possibilities of the thousands of stocks out there. You
constantly hear stories of stocks that break the trading range, reach an
all-time high, and then, before you have time to act, slide 30 points intwo days. By the time you get the news you are too late to capitalize!
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Information Tools Make All theDifference!
While you sense the promise and enjoy the excitement of modern
technology, like so many others, you probably feel overwhelmed,
frustrated, even lost at the prospect of putting your savings online, on
the line. Certainly none of the skills crucial to sizing up the market are
intuitive; therefore, in order to see what is really going on, and to
become a successful investor, you are going to have to learn about the
market's state-of-the-art trading techniques and strategies.
Type of investingDifferent people trade in different styles. There are long-term investors
who buy stocks and hold for a year or two. Mid-term investors may buy
and hold stocks from thirty days to six months. Short-term traders
trade frequently, on a weekly basis. And finally, day traders buy and sell
every day. Now, assuming you make good decisions, the more
frequently you trade, the more profit you gain. But what style is right
for you? Which stocks should you choose and how long should you hold
them? Some investors like companies with strongest earnings. Those
who like to invest in big blue-chip companies are not willing to bet on
startups. Other players examine company financial statements and
balance sheets, picking only those with low debt ratio, high cash flow,
and high profit margin.
More sophisticated players (this brings us closer to Tradetrek.com!)
behave differently. They scrutinize stock charts, looking for hidden
trading signals that may reveal a major opportunity. They understand a
cardinal element in how to make money in the stock market: Buy the
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right stock at the right time! Of course, this is more easily said than
done. Capturing the right moment to buy and sell requires certain
techniques called technical analysis (TA). To put it simply, TA is a set of
techniques analysts use to spot revealing stock patterns in advance.
The principles underlying technical analysis have proven successful in
dealing with all financial markets. Applying these techniques in online
trading, then, is essential to discovering a winning investment position,
whether you are a long-term, mid-term, or short-term trader.
Technical Analysis is so important that almost no investor can trade
successfully without it. Fortunately, Tradetrek.com has now come up
with an innovative paradigm to put real-time technical analysis tools
online. Scientists at Tradetrek are now applying newly developedartificial intelligence, neural network, and pattern-recognition
technologies to real-time technical analysis among hundreds of stocks.
By taking advantage of Tradetrek'sIntelliChart, you won't have to spend
hours upon hours going through thousands stocks in hopes of finding a
sound and promising performance pattern. IntelliChart conducts real-
time searches for more than a dozen technical analysis patterns and
presents you with the most profitable stocks among thousands of
stocks being traded. Under each chart, a detailed explanation
generated automatically by Artificial Intelligence helps advise you on
what course of trading action to take.
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ConclusionThe use of online trades has increased the number of discount
brokerages because internet trading allows many brokers to further cutcosts and part of the savings can be past on to customers in the form of
lower commissions.
Another benefit of online trading is the improvement in the speed of
which transactions can be executed and settled, because there is no
need for paper-based documents to be copied, filed and entered into
an electronic format.
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Bibliography :
This information is collect from following sight
Wikkipedia
BSE
NSE
Thank you !!