Online Stock Trading Advantages and Disadvantages

Online stock trading has opened a new horizon for small scale investors. They can now trade with small amounts from the comfort of their homes. So more and more people are now trying this new investment mode. There are many risks and advantage for this technological development. Let us try to understand what they are.

The advantages are many and the major advantages are in Online Stock Trading Transaction costs are lower and the online stock trader is in complete control. The online stock trader can choose the exact time of a stock trade, rather than place an order with a large broker and wait his turn. This can cost money during a rapid fall in the market. Any trader who traded in earlier days must have faced this. Another advantage is that the online stock trader can change his mind easily to cancel the order or amend it if seems advisable to do so. This is not so easy where a traditional broker is concerned. Yes the trader is in full command of the shares he holds. This can be disadvantageous also.

When it comes to disadvantages the emotions and in experience of the trader will affect and cause loss for the trader.To sum up, online share trading can allow a common investor to participate in the stock market in small amounts. Being in complete control can add tremendous interest in share trading. If not properly guided the investor or share trader may make huge loss also.