Safety Measures for Online Trading
Online trading has become very popular in today’s time when you just need a trading account and after that you can trade comfortably while sitting at your home. Apart from comfort of trade it provides various facilities like:
- Ease of buying and selling of shares.
- Online receipt of contract notes/ trade statement for the transactions.
- Direct deposits of dividends/ bonus amount etc to account.
- Various trading tools for ease of making investment decision.
Delayed Prices vs Real Time
While online trading, one must not forget that the transactions are not REAL TIME, Prices change at the blink of eye. Moreover the speed of your internet might cause delay. So always make sure not to change your decision until the last moment. Take time examining the stock and make decision ahead of time so that you don’t loose while in panic.
Volatile
An important feature of stock markets is volatility. So if you don’t keep a close eye on how your stocks move while placing an order, you might land up in losses.
Matter of Trust
Online trading is a matter of trust between you and your broker because there is no in-person contact. But you can’t leave everything on trust. Make sure your broker provides you detailed email statements and contract notes of executed trades.
Stop Loss
For novice traders, it’s a suggestion to always trade with stop losses. Set your stop loss to level to avoid the risks associated.
Track your Credits
Even though chances of default by a good brokerage firm are nil but a smart investor should always keep track of credit/debit of money in their bank accounts or transfer of shares to/from the demat account accordingly for each trade executed because technical reasons might lead to discrepancy which cannot be avoided.
Secure Trading
Security is another important factor for online traders. It is advisable always to follow security measures related to passwords and other personal information while login into the websites to eliminate chances of theft of identity and information.
