07 January 2013

Things to Take Note When Purchasing Shares Online

We are now in the Internet time horizon, enjoying a lot of convenience through purchasing items online. A lot of IT gadgets such as iPhone / iPad or Samsung Galaxy Tab series help us from making use of internet to perform numbers of daily activities such as viewing Youtube / Listening to iTunes Musics etc. Now we are in Post-PC period, where we are relying on mobile devices such as smart phones / tablets to conduct daily tasks. One of the topics I would like to touch on here is about the Online Stock Trading / Investing via your mobile devices.
  1. Change your password Regularly. It is advised to update your password regularly, e.g. once every 3 months. You may also set your password in a combination of numeric and character, in 6-12 characters. 
  2. Double check when Key In an Order. When you key in an order, normally you have to fill in certain fields such as No. of Shares, Counter Name / Symbol, Payment Mode (Cash/SRS/CPF etc), Transaction Mode (Buy / Sale) etc. So when you fill in the form, you must look through at least twice to avoid any mistake. Some trading platform would prompt you confirmation box to confirm the data that you filled in before it goes to the booking system. 
  3. Check the contract value when the trade is done and be ready to make a payment. While some brokers are willing to allow you to play "contra", it is a common practise an online broker to allow you to trade only after the cash is transferred into trust account. You have to check properly the exact amount paid to a broker as well as the amount you will be received from your broker. You may also receive email containing daily statement / contract notes if you opt for this option. 
  4. Contact your broker if there is anything you need. Since you are paying your brokers by using their services (e.g. Research reports, Education courses, Online Trading Platform etc), so you definitely can give your broker a call, such as asking them on market updates, platform updates, or any research reports on certain counters listed in the stock market. They are more than happy to provide services to you. Of course, it if good that you can establish a good relationship with good brokers, as now it is harder to get a good broker to serve you due to lowering commission rate trend. 
  5. Always have a Trading / Investment Strategy. As it is too convenience for you to access to stock market, so you may end up spending too much time on the market and put your full time job aside. It is advised that you have a proper strategy to stay profitable in long run. You may have joined some education course to improve your trading / investing strategy. 
I hope this could help you to take note when purchasing shares online. 

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