A Study on Investors Perception towards Online Trading.

The footprint of Online Trading began in the year 1983. Earlier an investor has
to call his stock broker to place the order. After that the broker’s would go to
the stock counter to place the investors order. So for one transaction it was
taking too much timing. And even information regarding share prices also were
given by the
stock broker only. All these problems arose where there was no proper
communication system. The rapid advancement in technology, especially the
Internet introduced drastic change in all sectors. And coming to Stock Market,
the Internet has changed the way of working in stock market. It has created
Online Trading Platform. Online Trading in India is internet based investment
activity, which facilitates to trade in stock market with direct involvement of
stock brokers/ investors. Online Trading has become very popular in the last
couple
of years because of easy and convenience method of trading. So many
companies are gone through online trading to meet the needs and demands of
investors and enabling them to trade when they want and how they want.
Trading is the process of buying and selling the goods and services, but in the
current context, it is buying and selling the financial products and services, like
shares and securities. This facilitates trading mechanism where investors can
place their orders and confirm their transaction through electronic
communication channel. Such as Internet, Mobile Phones etc,
 Current Scenario Of Online Trading
As improvement and innovations in IT (Information Technology) sector,
economic is growing forward. And each and every individual showing greater
interest towards various economic transactions. Now days everyone are
focusing on reengineering the business practices around the internet. With
increasing in development and innovations in IT Sector, Network Sector,
Technological Sector. Now days everyone are going to digitalization. Especially
Indian investors are showing more interest towards E-Business/ E-Trading. And
also it has become inevitable for the investors to go through the online trading to
avoid frauds and as well as to save their valuable time.
 OBJECTIVES OF THE STUDY
1. To identify the perception of investors towards online share
trading.
2. To find out the factors that influence investors while choosing a
brokerage house.
3. To find out the type of trading preferred by investors.
4. To study the risks involved in online trading.
5. To identify the current traders of online trading.
CHAPTER- 2

RESEARCH
&
METHODOLOGY
A. STATEMENT OF THE PROBLEM :-
 The investment decision of investors is influenced by their own decision
and though friends & relatives.
 Majority of investors invest only upto 10% of their annual income in
share market.
 The number of players is increasing at a steady rate and today there are
over a dozen of brokerage house who have opted to offer net trading to
their customers and prominent among them are Religare, India bulls ,
Kotak bulls , Kotakstreet and karvy.

B. NEED FOR THE STUDY :-

SEBI in sep 1996 has issued Guidelines to the Stock Exchange to go
on-line trading procedure by the end of year 1996. Following its directivities
RELIGARE SECURITIES LIMITED has installed the on-line trading system as
on July 2000. The major need for this study is to know the effectiveness of the
on-line system in comparison with the outcry or mark trading to study its
advantages and recommendations for beneficial and effective use of the system.

C. SOURCE OF DATA
The data collection methods include both primary and secondary data.
The primary data for the project regarding investment and investment decision
were collected through questionnaires.
The secondary data for the project regarding investment and various
investment decision were Collected from website, textbooks and magazines.
 CHAPTER -3
LITERATURE REVIEW
&
THEORETICAL FRAMEWORK
INRODUCTION: -

The trail of Online Trading initiated in the year 1983. Earlier an investor has to
call to his stock broker to place the order. After that the brokers would go to the
stock security to place the investors order. So, for one transaction it was taking
moreover much timing. And even information about share prices also were
given by the stock broker only. All these problems arose where there was no
proper communication system. The speedy progression in technology,
particularly the Internet introduced extreme change in all sectors. And coming
to Stock Market, the Internet has changed the way of working in stock market.
It was created Online Trading Platform. Online Trading in India is internet-
based investment activity, which facilitates to trade in stock market with direct
participation of stock brokers /investors. Online Trading has become very
popular in the last couple of years because of easy and convenience method of
trading. So many companies are left through online trading to meet the needs
and demands of investors and permitting them to trade when they want and how
they want. Trading is nothing but process of buying and selling the goods and
service in a stock exchange, but in the current context, it is buying and selling
the financial products and services, like shares and securities. This enables
trading mechanism where investors can place their orders and confirm their
transaction through electronic communication channel. Such as Internet, Mobile
Phones etc. The internet revolution has been varying the fundamentals of our
society. It shapes the way we communicate and the way we do professional. It
brings us closer and closer to vital sources systems personalized to our specific
needs;
therefore, we can serve ourselves better by making our own decisions. This
principal shift of the business paradigm is reshaping the financial industry and
transforming the way people invest. Internet stock trading can be an exciting
way to trade stocks, with transactions being accomplished within minutes and
sometimes seconds. Web base stock trading has become a very popular method,
and internet stock brokers with specialized websites offer expedient trades
trading, there is much he or she should learn and there are cautious to be
observed. Web base trading can be very risky, with markets that change with
the click of a button. Those interested in online stock trading will want to spend
time getting their facts together and getting as much information about online
trading and day trades as possible. Getting informed is getting knowledge, and
getting knowledge will equate to wisdom and better earning potential. Investing
is very much essential these days as savings alone is not adequate to fulfil all
our financial goals and also to beat inflation. There are several investment
options available and you can choose them as per your needs and convenience.
You have to start your investments right from a young age so as to get good
returns. Investment habit brings a sense of financial discipline in a person’s life
as it makes you allocate a certain amount of money periodically for the purpose
of investment. Based on your risk appetite and time horizon to achieve your
financial goals, you can select the appropriate investment option. There are
some financial assets that help you achieve your short-term goals and other
assets that help you achieve your long-term goals. In today’s busy world,
technological advances have made the entire process of investing and managing
investments easier without any hassles. Anyone can have a complete hold on
investments even through smartphone. You can stay connected with the market
always as investing in the stocks requires constant monitoring of the stock
market. Trading in the stock market has become less time consuming these days
as you can trade all by yourself without the assistance of a broker by means of
online trading. Just like shopping for groceries online, you can buy and sell
stocks online. You need not be an expert to begin online trading as these trading
platforms are user friendly and do not necessitate any special learning. have
even made things easier for an investor or trader as you can carry out any
transaction in the stock market through your smartphone itself. You can trade
from anywhere anytime through the mobile trading app.

Trading platforms provide all the necessary support and assistance by providing
secured real time access to trading, research reports, price analysis of stocks,
market news, etc. You can buy or sell shares if you have a trading account and
an internet connection. Not only that, you can trade in currency, commodity,
etc. through one single trading platform. platforms help you trade without any
difficulty as these platforms enable high speed trading. These platforms have
revolutionized the way trading is done. You can simply download these to your
system or mobile and can begin trading.
What is Online Trading?
You can place trade orders or cancel orders at your will from the comforts of
your home. It allows you to make your own decision with regards to trading
without any interference of the broker. You can buy shares or invest in IPO or
buy mutual funds as well.

Online trading can be done by simply opening a demat and trading account with
any SEBI registered broker. Account opening can be done in a matter of 15
minutes. The documents required to open an account are PAN card, address
proof, AADHAAR card, mobile number linked to AADHAAR, bank statement,
cancelled cheque leaf and passport photograph.
 ADVANTAGES OF ONLINE TRADING

The Advantages of Online Trading are:

 It’s Simple
 It is Less Expensive
 Quick & less time consuming.
 Complete Control
 Chances of Error is less
 Monitor Investment All time
1. It is simple:
It enables a trader to have a hassle free trading experience. Anyone can use
these platforms as specific skill is not required to carry out trading online.

2. It is less expensive:
It is less expensive as compared to traditional mode of trading. Brokers also
promote online trading as it reduces maintenance and other costs incurred by the
broker.

3. Quick and less time consuming:

Trading can be done in a seamless manner and in less time. Before the advent of
online technologies, trading was a cumbersome process as you had to visit the
broker or call your broker for placing or cancelling trade orders. Now, you can
carry out trading even through a smartphone in the simplest way.

4 .Complete control:
It allows you to have complete control over your portfolio. You can place trade
orders from anywhere anytime. That is the kind of flexibility you get due to
online trading.

5. Chances of error are less:

In case of traditional offline trading, there were more chances of errors due to
miscommunication between the traders and brokers. But in online trading, you
can place trade orders or cancel without broker’s interference and hence can
manage trade transactions by yourself.

6. Monitor investment at all times:

You can monitor investments anytime. There are mobile trading apps that can
be downloaded in your smartphone which help you stay in touch with the
markets and also monitor your investment anytime and take proper strategic
moves accordingly. Loss making stocks can be removed and profit-making
stocks can be added to your portfolio by observing the way the market moves.
 DISADVANTAGES :-

1. Online trading is a risky business and you can always potentially lose money.
2. Sometimes, Internet connection can be a problem or the website itself loads
very slow.
3. Investors may incur a loss due to mechanical or platform failures.
Safety measures that have to be taken in case of online trading:

 Trade orders should not be placed from shared PCs or cyber cafes.
 Always log out after carrying out trade in order to avoid any misuse of
your account.
 Personal computers have to be protected against viruses by installing anti-
virus solution.
 Do not click on “remember me” option when you sign in to your trading
account from a different location.
 A study on investors perception towards online share
Trading,

Questionnaire:-

1.Gender:
a) male b) female

2.age group:
a)20-30 b)31-40 c)41-50 d)above 50

3.Educational qualification:
a) professional b) diploma c) graduate d) others

4.Monthly income:
a) up to Rs 5000 b) Rs 5001-20000
c) Rs 20001-50000 d) above Rs 50000

5.Wheteher you've done share trading before choosing online trading..

a) Yes b) No

6.Are you a professional trader ?..

a) Yes b) No

7.For how many years you are doing the online share trading ?
a) less than 2 years b) 2-3 years
c) 4-5 years d) above 5 years
8.How often you trade?
a) daily b) weekly c) monthly d) occasionally

9.From where you used to trade?

a) home b) stock broking office
c) office d) through mobile app
11.In which stock exchange you prefer to trade mostly?
a) BSE b) NSE c) both a & b d) other

12.Which type of trading you generally prefer to do?

a) day trading b) position trading
c) swing trading d) others

13. In which type of share, you prefer to invest?

a) equity market b) currency market
c) commodity market d) derivative market

15. How did you come to know about online share trading?
a) reference by friends b) advertisements
c) advice by financial consultants d) others

16. Are you satisfied with the online share trading services provided by your
brokerage house?
a) highly satisfied b) satisfied
c) moderately satisfied d) dissatisfied