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The pros and cons of online trading

“Online trading is on the rise!” a senior financial analyst from Wilkins Finance confirms.Every day there are new investors emerging and taking over the stock market. The competition is intensifying…

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“Online trading is on the rise!” a senior financial analyst from Wilkins Finance confirms.Every day there are new investors emerging and taking over the stock market. The competition is intensifying and so is the likely hood of various kinds’ of threats. The online stock trading emanates with benefits and as well as jeopardies. Some of the pros of online trading are as follow:

The stock markets are open 24/7

This gives the opportunity to the investor to work in their convenient hours. Yes, you can work at home at any time whenever you feel like.  Online trading can be done as a part-time job with day-today routines not being affected.

Online trading platforms

The brokerage firms provide a secure online trading platform to the investors, which mean that the investors do not have to worry about being scammed and their money will not be taken away. A secure connection is established between the investor and the firm which benefits each other.

Speedy transactions

With online trading, you can speedily carry out your transactions with the high internet speed available. Latest updates on stock can be viewed in a matter of seconds. Also, online trading firms offer investors an imposing set of tools providing valued information and helping to elevate the trades.

Real-time progress

The online sites provide real-time investment progress to the investor. Minute to minute changes in the market can be viewed. For example, companies such as Scottrade, offer investors access to streaming data. Investors get real-time quotes and also stock market news.

Beware of scams

However, there are negative aspects of online trading as well. New investors fall in a scam of fraudulent investment. They invest money through a brokerage firm. The firms first build their client’s trust by providing them incentives and profits but then unexpectedly they disappear from the market world. They are no longer there. The investors lose huge amounts of money. Hence a well-known, established brokerage firm needs to be contacted for investment.

Loss of funds

As the trade can be done in a matter of seconds by clicking a single button, many investors get hyped, they do not think much about the trade, and they are rushing to trade in eagerness without thinking upon it and ending up losing lots of funds.

Trading can become addictive

Online stock trading can be an addictive behavior. People invest in the trade and they, for example, get profit once. They will have positive reinforcement and associate trading with more money. For money, they will keep on trading more and more hoping to maximize their profits even though they might be in turn losing money. They may end up bankrupt due to this negative behavior. According to studies, this behavior is similar to gambling and is addictive.

Computerized trading

The online trading is carried out by the use of internet. If the internet connection is slow and a trade is made, but it processes slow. The rate might get changed in seconds and the investor’s money can get invested in something they didn’t opt for. The time lag can alter the losses and gains from a trade. Similarly, slow computer or hardware problem can occur which can show that the trade wasn’t completed making the investor trade again. The investor ends up capitalizing twice as much as they intended to do so. Make sure you know how to authenticate trades and review statements beforehand using an online investing system.

Trading news and updates

The service provider needs to provide the latest news of the market. If old news is presented, the investor might end up investing in a trade from history which will take a lot of time to process. The rate of the trade also might have fluctuated. In return, you will get something you have least expected from the trade. So real-time updates and stock quotes are needed for active trading.

Hence, it can be concluded that the pros of online stock trading outweigh the cons of online stock trading in a number of ways, as long as you have the knowledge about trading, since online trading can be a source of good income for people who can utilize their financial skills to operate in the market substantially.

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Investing in Apps for Future Profits

Thanks to the app ecosystem growing in such a significant fashion, there’s now a booming market of mobile apps designed to help you make money. Whether you’re a seasoned FOREX…

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Thanks to the app ecosystem growing in such a significant fashion, there’s now a booming market of mobile apps designed to help you make money. Whether you’re a seasoned FOREX trader or a rookie, everyone can do with a little extra cash in their pocket at the end of the year.

That’s why, today, we’re going to show you how you can invest in apps and start making a small nest egg for yourself. By signing up with any of these services, you can get to work on your portfolio and start seeing some serious gains; you won’t be like Gordon Gecko (though that’s a good thing, right?) but you will have a little change to throw around.

Acorns

Investing in Apps can turn your phone into a profit center

Acorns is a pretty ingenious idea for an app. Basically, it’s an iOS and Android app (which you can download for free) that helps you turn your spare change into returns that are actually significant – over a long-term basis, of course.

So how does this work? Well, first, you download the app and sign up to their service. Link your account to whichever bank card you’d like to use, and then forget about it. Whenever you use that card to pay for items in the real world, Acorns will deduct it from the next highest dollar value (which is a fancy way to say that it rounds the price up to the next dollar).

The difference is then invested into your portfolio, and Acorns allows you to decide how risky you’d like your trades to be. The lowest risk will, of course, offer the steadiest returns, but at a rate some of you might find boring. The higher risk, on the other hand, may pleasantly surprise you one day – but don’t say we didn’t warn you if you end up broke!

Betterment

For those of you who’d like a more traditional type of experience, Betterment is somewhat like having your own personal stock trader, except its behaviour is completely controlled by a series of algorithms.

You’ll create your own account, and then pledge an investment of anywhere between 0.15 to 0.35 percent of your annual salary. By specifying the kind of returns you’d like to see (whether that be to build wealth or create a nest egg), Betterment will start to make the kind of investments that are suited to your goals and hopefully get you there.

Openfolio

Openfolio is a great idea for an app which isn’t directly related to making trades, but will definitely be of use to anyone concerned with keeping a comprehensive overview of their financial affairs.

Essentially, you can connect the app to every aspect of your financial life. In fact, Openfolio proudly boasts compatibility with over 100 banks, meaning that you can keep an eye of your cash flow and assets while also being presented with some very easy-on-the-eye analytics to help you understand how all of them are working together.

Likewise, it can provide advice on how you can make your cash work better for you without needing to actually do any work. This one is highly recommended by us!

For more great posts about trading, remember to keep checking back. It’s obviously a notoriously intricate thing to get involved with, but these apps can help you start to build a better future for yourself with a minimum of time invested.

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