Stock trading, once solely dominated by rich investors is now easily available to all the investors, thanks to technology. Yes, we owe it to technology because of which it is now possible to trade stocks online. Earlier, brokers used to execute orders on behalf of the traders. But, now, with the help of online trading services, traders and investors are able to execute orders using any internet enabled device.

The ability of markets to yield higher returns is equal to it being capable of resulting in losses. To become a successful trader, it is vital to understand basics of online trading tools, as well as daily trends that drive the market. Read on!

Basics:

Like every business, stock market too functions on a basic system of demand and supply. The more the demand, the higher will be the price of a particular stock and vice versa. Basically, when a stock price increases, it indicates improvement in the value and the performance of the firm. However, there are several factors that affect the movement of stock prices, it is impossible to predict all of them.

Research:

There are two types of analysis techniques, Fundamental and technical. Fundamental analysis is when you pick a stock on the basis of financial reports and income statements of the company. Whereas, technical analysis is when trends are depicted in charts. Carry out thorough research before putting in your hard earned money. If you are a newbie, take the help of a professional before arriving at any investment decision.

Trading services:

Before you start with online share trading, you will have to decide on the trading service. Ensure that your broker offers you easy access to all trading tools. Log on to the website during peak trading hours and check if it loads quickly. Also, check the interface of the mobile application provided by them.