Online Share Trading Tips

More on Online Share Trading

Online Trading has become an integral part of every trader, who wants to have better control over their investments and return. Almost all stockbrokers offer the online trading option, along with regular share trading tips, to their clients and also provide training for the same, in case, the client demands so.

By all means, online trading wins over the traditional call and trade format for a number of reasons.

Online Share Trading Tips For Beginners

So, online trading is quick, offers greater control and accessibility to the traders, but it comes with its own share of risks both for the beginners and for expert traders. However, most of these risks can be avoided or at least alleviated by following usual instructions and making it a habit to always follow them.

Mostly all have heard this wise saying Prevention is better than cure.

Now, the same has to be applied to online trading to ensure it is smooth. Discussed below are some of the online share trading tips (as well as intraday trading tips) that will certainly help you to enhance your trading experience. We have taken care of the beginners’ perspective and listed the areas that MUST always be followed.

Best Online Share Trading Tips

Some of the share trading tips mentioned here might seem to be obvious to you, but remember to make yourself habitual with your regular trades.

1. Learn Stock Market Basics

This is mostly for the new traders.

Online trading requires more than just putting buying and selling orders. An online trader must know to add and deleting the scrips, putting all columns to use, and punching in different types of orders. Brokerage houses regularly offer training sessions to the traders.

Although it is one of those cliches share trading tips. but it’s very easy to forget and people just start putting in their hard-earned capital in the share market without much of an understanding.

Apart from that, traders can also use audio and video tutorials available online to learn the basics.

You can check the Share Market Education topic here at A Digital Blogger and also follow our ADB Youtube channel for regular video updates.

2. System configurations

Every trading software requires a set of configurations to run hassle-free. However, not all the systems have the required configurations to run. Requirements such as hard disks, version of the operating system and so on are needed for smooth online trading. 

A lot of terminal softwares and mobile apps require you to have a decent configuration in terms of RAM, disk size, operating system version and so on. However, some traders may ignore to meet the configurations.

This could result in frequent system crash. Also, it could make the system slow, and this could lower their chances of success.  

3. Update the Trading Software Regularly

Broker houses update their trading platform on a regular basis for better performance and also add new features. Usually, new features are added after the feedback from the clients to help them to trade better.

For instance, the trading platform would initially offer commodity and equity scrips in different windows, which is not convenient for the traders having a position in both the markets.

So, to make it easier for the traders, the broker house sends an update to enable traders to put both the scrips on the same window. However, unless the trader runs the update, the new feature won’t get added.

Thus, the idea is that such updates are done for the traders, and therefore, it is only advisable to get those updates for quick and smooth punching of buy and sell orders. This may look like one of those very basic share trading tips, but make sure you stay aware of its implications.

4. Finding the Right Stockbroker

Every broker visits third-party websites for the reports, daily market reports, fundamental reports, thematic reports, live share prices and other such information. It is always advisable that traders access these websites by typing the URL rather than clicking the result from the Google search.

There are various fake websites that impersonate the legitimate site to the extent of appearing the same and also appear frequently in the web search. Therefore, reaching the website by typing the URL is the safest way of accessing the information.

Learn here on how to choose a stockbroker.

5. Always Upgrade your Anti-Virus

Irrespective of whether someone is a trader or not, anti-virus is a must for anyone. Traders, however, have a lot of financial data on their PCs that needs to be safeguarded against the hackers. An updated anti-virus would keep the system clean and free of malware that has the potential to seep into sensitive financial information.

In case, the antivirus has expired, it should be quickly repurchased and installed.

6. Password

Every trading platform would ask for the credentials before offering access. Usually, the credentials are followed by one or more security questions to ensure that the legitimate owner has logged-in to the account.

However, many times to avoid the risk of forgetting the password and answer to the security questions, people keep it excessively simple such as their birth dates or simply first five numerics or alphabets.

These passwords are easy to guess even for a rookie hacker. Therefore, the password must be strong and changed periodically to ward off online miscreants.

7. Learn about Margin

Excessive exposure can put the trader in massive trouble if they wrongly anticipate the direction of the market. Day traders – both experienced or the new one – should always try to avoid margin trading. They should trade with what they have, in order, to limit the losses in adverse condition.

Yes, margin or leverage may seem like a lucrative trading aspect however, there are some risks associated with such share trading tips and you must be aware of those. If you don’t take the pain of actually learning the implications of using margin, you may end up losing a part or whole of your trading capital.

8. Additional Authentication

An extra layer of security is always good to warrant the safety of sensitive information. Various trading platforms offer two-factor authentications or popularly known as 2FA for additional security. Nowadays, almost all the companies, who are into offering the financial services, require the user to sign in for the 2FA authentication.

Other than username and password, 2FA requires the user to punch in the one-time password sent to the smartphone of the user. It is only safe to go for the 2FA authentication for trading in the stock market.

This is one of those share trading tips that can help you to protect your system or machine from other potential hacking concerns.

9. Disable the pop-ups

It is advisable to halt login into the trading account, in case, the screen shows an unusual pop-up. Traders might come across irrelevant pop-ups like ‘your OS needs to be upgraded’ or that ‘you have won 1 crore rupees.’ Instead of hitting the OK button for such pop-ups, a better option is to cancel it and stop logging on the website.

Web browsers have settings to block such pop-ups. Make sure you use those settings and take care of this share trading tip.

10. Use Stop loss for lower impact

Stop-loss is a pretty useful tool in online trading, and even the most experienced trader uses it. In fact, an experienced trader knows its importance. Stop-loss is an automated feature that sells the shares if the price falls below a specified limit.

This feature comes very useful in limiting the potential losses due to a sudden and steep fall in the stock price.

11. Do not convert intraday into a delivery trade

It has often been seen that traders hesitate to take the losses in their intraday position. So, to minimize the day loss, they take a chance and convert their intraday position into delivery. Eventually, they suffer more loss in the stock.

So the thing is, do not just convert the position just for its sake, rather do it when you are confident about the price movement.

Obviously, both types of trading have their own pros and cons. You can learn more about Intraday Trading Vs Delivery Trading here.

12. Don’t use multiple devices

Traders should avoid logging into their accounts via public computers. Public devices could be monitored and hacked easily, thus risking the data of the users. Even at home, traders should stick to just one computer rather than accessing the platform from multiple devices.

Even if you decide to log in from different devices, ensure that you follow the security norms.

13. Do not install fishy software

Traders should not download untrusted software and apps on the computer. Before installing such software like ones promising you to clean your PC or boost the speed, it is advisable to check if it is verified. 

We are living in the world, where every activity over the Internet is tracked by companies to gather user data and capitalize on it.

Furthermore, after trading, it is always advisable to log out the account. This is just another simple but important step to ensure that the account is not compromised.

14. Do not overrule Brokerage recommendations

Broking houses have teams of experts and analysts both technical and fundamental, who pick the stock after detailed research. Many times, traders do not follow their recommendations or sometimes go to the extent of taking contrapositions. Avoid such trades because it might turn out to be the worst decision made by you.

While experienced traders can cherry-pick their own stocks, newbies should start with following the recommendations by the broker houses.

15. Attend Seminars

Irrespective of the trader being a starter or an expert, they should also keep up with the latest news and developments. Brokerage houses regularly hold sessions and seminars to make traders aware and understand the current policies and upcoming policies, and how they would impact the economy and the sectors.

These seminars give an insight to the investor that eventually helps them in identifying quality stocks.

The above mentioned online share trading tips are not mandatory but could prove quite useful. Remember stock trading is not a science, but an art.

So, even the most successful trader can’t say that he/she knows all. It takes a lot of time and efforts to become a professional trader. And, these share trading tips can certainly help you to become one in a relatively quick time.

In case, you are looking to perform intraday trading but do not know which stockbroker suits the best for you, just fill in your details below.

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