‘Mr. John is an investment banker and an expert in trading. He buys stock in the morning, observes the movement of the stock during the day, and by the end of the day, he sells his stock, after registering a small profit. This act of trading during the same day is called Day Trading.’
Trading has always been a competitive industry, where companies and individuals participated in earning some quick and easy money. It’s an industry that is ruled by speculation. Well! In the last two decades, the concept of day trading has touched a new benchmark, thanks to the growing availability of various online trading platforms. According to one of the famous researches, it has been found that the rise in day trading has been exponential after the advent of the web. The numbers are encouraging; the amount of online trading is at the highest, and today almost every individual handles his portfolio online, without much effort.
Trading is a volatile activity, and interestingly, the risk-taking ability has increasers amongst investors, after they switched from the traditional paper shares to the virtual world of trading. The broad spread reach of the internet has further supported online day trading. Today billions of people across the globe are connected to the internet. Online Investors are smart; they use the internet as a research weapon, where they can read about the company’s progress, view their charts periodically, and take calculative decisions. E-trading has saved time, energy, and money of investors and has given them the luxury of trading from anywhere and at any time.
Let’s now look at how online has impacted day trading:-
Online Trading Provides More Transparency
In the traditional method of trading, the dependency was completely rested on the brokers. Investors had no choice but to act as per their advice. However, with online trading, the investor is the king. He can use the chat room to communicate with other traders and understand where to put their money. Moreover, they can refer to the news on shares and make proper decisions.
Online Trading Is Fast And Secure
This is yet another critical USP of online trading where investors can instantly make decisions based on detailed information and make quick and assured profits. Moreover, unlike the traditional method of transactions through brokers, today, investors can perform online buying and selling of stocks, without any interference. It is because of these two features that day trading is increasing drastically.
Now when you are the investor and the internet is your guide, the cost that was given to brokers and commissions has been eliminated. For online trading, the trading fees are very nominal, and it can be negotiated as per the volume of the trade.
Gives You Better Control Of Your Money
Online trading provides flexibility. You can trade anytime and anywhere at free will, without the limitations of a broker. You can do quantitative trading as per your judgment and review your stocks and decide their further movement. All this is possible through a single click, that’s what makes online trading so accessible.
Today there are professional courses that train you in the business of trading. Therefore with the help of the internet, investors can leverage huge profits, take calculative risks, and enjoy the process of trading.