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Online Trading -10 "Whys" And "Wherefores" Of Online Trading!

Apr 2, 2008
The Internet has come to dominate our lives to such an extent that we cannot even imagine a time when it was not present! Nowhere is its presence expressed more than in online trading! This is illustrated by the following example--

Here is a person whom we shall refer to as John. John applied for, and got a nice job in a particular city. Now, he cannot afford to spend time traveling from his present location to his job in the city everyday. So he decides to find a place nearer to his job.

He sits down in comfort and browses the Internet for web sites listing houses and apartments, either for sale or for renting out. He does not even have to apply for leave at his office to do this! He can possibly even find trading sites, where the people on that web site want something in return from John!

This is just a small example! The Internet has penetrated all areas of education, shopping, health care, and so many others! The latest on its list is online trading.

Let us have a look at all the "whys" and "wherefores" of online trading--

(1) Before the advent of the Internet, trading transactions were conducted in an entirely different manner. Both, the customer and the retailer had to be physically present on the spot. Whatever items brought by traders such as--sea products, iron, porcelain wares, tin, etc.--were exchanged for other goods. This was known as the barter system. Money was not yet the mode of payment.

(2) Of course, there are still conventional sales channels where physical presence is required. But this is slowly giving way to an alternative method of value exchange via the World Web.

(3) People are finding it rather difficult today to keep up with inflation and fast-paced lifestyles. So they are constantly on the lookout for newer ways to increase their incomes, and online trading in stocks appeals to them.

(4) The attraction in this type of trading is that lucrative returns are possible from investments in particular stocks, despite some amount of risk being attached to them.

(5) Everything is possible without stepping out of one's home, because of the Blessings of the Internet! Any one can decide to trade in various items such as--personal goods, tools, homes, rooms, collectibles, services, villas, products, and much more--online. Thus, over-the-counter sales are not the only way to dispose of goods!

Yes, credit cards are a necessary component of shopping online. Their details have to be entered for payments to be transacted. That is why credit cards are so much in demand today!

(6) The above-mentioned examples are not the only goods and services offered over the World Web. The visitor can indulge in buying and selling of stocks by dealing with more than 100 brokers registered online.

(7) Coming to online trading in stocks, the trader or investor has to do a little research before entering the financial market. True, this method saves both, time and money. Yet, an impulsive and wrong decision taken in the fraction of a second can prove quite costly; details entered online cannot be retracted so easily. After all, no one wants to earn hugely one second, and lose it all in the next!

(8) Like mentioned above, online stock trading can be dangerous unless the investor is thoroughly sure where to put his money! A beginner can be misled into believing that it is a very simple way to make money, and indulge in "blind" transactions without having an inkling of what he/she is doing.

(9) So what is the solution that can be offered here?

Apart from studying market trends and consulting with experts, an investor would be well advised to clarify some things such as--what is to be done if he/she is unable to access his/her account line, which is the alternative site for placing his/her trade, how does one cancel an order, what about placing complaints, and so on.

(10) There is no need to go traipsing around local stores and wasting time, looking for certain items--online trading can provide everything! The middleman has lost his role, since any individual can become a trader himself with a little practice!
About the Author
Abhishek has an uncanny insight into Trading! Visit his website www.Trading-Masters.com and download his FREE Trading Report and learn some amazing Trading tips and tricks for FREE. His tips would save you thousands and make you better at Trading! But hurry, only limited Free copies available! www.Trading-Masters.com
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