Online stock trading has become popular with the advent of internet and its increasing density in homes. But should you get engaged in online stock trading from home is a question for many?

Answer is very simple, if you don’t like to get distracted by so many people out there at your broker’s place, definitely you would like to go for online stock trading from home.

You will get rid of following problems if you go for home based terminal:

Generally what happens, one goes to a broker’s/sub broker’s place, he sits along with a lot of other fellow stock traders. Now what happens, first of all there are a lot of persons attached to single terminal say in a busy broker’s place I have seen at least 9-10 persons engaged on one machine. This not only creates a little mob but also obstructs your vision if you are not near screen.

Other point is, at a common place like this, there are more chances you are going to be affected by others’ decisions, strategies and discussions. Now sometimes it may be good but it will prove wrong most of the times (my personal exp.) as you are sitting generally with common traders. People are so much more social that they can't stop themselves giving free advices even if you don’t want it. Thus, making wrong decisions and potential loss is possible.

One more thing, if you are somewhat away from screen you will have to shout every time you have to place/modify and order, if you are not louder the dealer entering order may not get it right and this may result in wrong orders.

Another point, as the rates are changing so fast, suppose you want to modify an order and the dealer is busy with someone else or on another order on phone, you may lose your chance at right point of time. Yet another problem is, suppose you want to watch certain stocks on a continuous basis, there may be other persons with similar approach, but space on a single screen in not so much that it can accommodate all scrips. So, either you will not be able to list all your scrips in front or it may become a reason of dispute with a fellow trader. Also, you are not able to use personalized tools, which are available with online trading terminals.

Drawback:

Only draw back of having online stock terminal at home is, you get some what asocial, and sometimes while at broker’s, interacting with some good trader (if there is one?) might give you good insight regarding the tricks and new information which you might not get if you are sitting at home.

So, if you are familiar with your system/keyboard and are comfortable in putting orders yourself, its best for you to have online stock trading terminal at your home whether it be a web based or exe based terminal.

In next article, I will discuss how to choose a better stock-broker.

To become a better day trader Pl click here.