Trade Stock Online Without Credit Check by xmq86631

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									   ONLINE TRADING and
INVESTMENT MANAGEMENT

     Presented By

     Dr. Rana Singh
    www.ranasingh.org
   MBA (Gold Medalist)
          Ph. D.
      9811828987
 singh_rana@yahoo.com
The ability to learn faster than your competitors may be
the only sustainable competitive advantage
                                                 - Peter Senge
                                                   The Fifth Discipline
Evolution of Online Trading
    Only a decade ago, the primary method by which individual
    investors were able to get information and trade on the stock
    market was by going to the stock broker's office or calling the
    broker on the telephone.
   telephone automation allowed investors to dial into the broker's
    computer system and place their trading orders without having
    to go through a human operator.
   As personal computers and telecommunications became more
    prevalent, investors started to use their computers to dial into
    their broker's systems and conduct their transactions
    electronically.
   Evolution of World Wide Web .
 Services Available
              Investment Management




    Content/Data      Trading         Financing Options




Advice       Information     Account Management
Content/Data
   Information
       Real time stock quotes
       Market Summaries
       News & Headlines
       Charts
       Report and trade alerts
   Advice
       Real time Chat with experts
       New Investment Ideas
       Forthcoming IPO advice & analysis
Financing Options
   Loans
   Credit on sales done
Online Trading
   What can you trade?
       Stocks
       Options
       IPO’s
       Mutual Funds
       Bonds
Trading (Continued)
   Ways of trading
       Online
       Interactive Voice Response(IVR)
       Traditional Broker Assisted
Account Management
   Account Summary
   Track Orders
   Check trading limits
   Check open positions
   View Transactions
   Cash & Securities due
         A Typical Online Transaction

  Place Orders
                                              Stock Exchange
                      Web Server
                                              Web Server
User
                      Database
                                              Stock Exchange
                                              database
       Confirmation
       to User
                                   Confirmation
                                   To the Brokers Server
 Online Trading

A Simple Representation
Major Components
   Stock feed data source
   Storage of stock data
   Retrieving of data from the www
Stock feed data source
   Stock data is derived from a live data
    feed connected to the exchange
   Modem based connection to an NT
    stock feed processing server for
    preprocessing of the data feed before
    broadcasting over the net.
Storage of Stock data
   Database server receives the packets
    containing the updated information
   It collects,reprocesses and stores the
    information
Retrieving of data from www
   The web server running the software
    accepts realtime stock data that is
    updated on the database
   The software queries the
    database,formats the information and
    presents it to the users.
Typical Functionality Provided
   Stock information retrieval system
   Monitoring stock market movement
   Stock market analysis
   Personal portfolio management
   Simulated stock transactional services
Information Retrieval System
   NT server broadcasts the Stock feed on
    the network
   Database server collects the stock feed
    and stores it in the stock database
   Stock info retrieved by querying the
    stock database
Subfunctionality Provided
   General information on all the stocks
    arranged in various orders
   Up to date market summaries as well as
    market indices.
       Top five gainers
       Top five losers
       Top five volumes
Monitoring market movement
   Stock database is updated continuously
    for accurate monitoring from the
    exchange
   If the information received is new the
    database server changes the records of
    the current stock information
Market Analysis
   User can analyze the information using
    the utilities provided by the system
   User can download raw stock data in
    the form of ASCII files and use them as
    inputs for custom analysis tools
Portfolio Management
   Users can setup and manage their own
    portfolio
   Stocks kept in the portfolio are stored in
    tables so that users can keep track once
    they login
   Portfolio profit calculation will aid the
    users in their buy/sell decisions
Simulated Transactional
Services
   Users can trade as they do in the real
    stock market environment
       User sends in a request which is queued
       After some time the request is processed
        according to the current stock prices
       Brokerage fees ,contract stamp,clearing
        fees are all taken into account while
        preparing the bill which is sent to the user
Indian Scenario Opportunities
   Growing internet usage
   There were 5.5 million internet users in
    india in january 2001 and 48% of the
    users accessed the net daily.
   Nasscom predicts that there will be 300
    million internet users in India by
    December 2010.
Opportunities (cont.)
     e-commerce is now fully legal in
    India with the information
    technology act that took effect in
    October 2000.
   Along with lending a coherent legal
    framework the act provides
    penalties for cyber crimes.
Opportunities (cont.)
   People are enthusiastic about e-trading
   Growing user base especially in
    professionals and brokers.
   Many first time users are becoming
    loyal customers of services from sites
    like ICICI direct and sharekhan.com
Threats
   Security threats
   Internet penetration in India is still not good
    enough.
   People are still reluctant to trade shares
    online, and prefer their traditional calling the
    broker options.
   Only the tech savvy, professionals and major
    stock brokers are using it currently.
Threats
   Cyber laws have been formulated but
    implementation is still not well tried out.
The general reasons for the use of the WWW for trading were as follows: -



          Category                Response          Number   Percent        Male    Female



    Why use the WWW?        Timely data        53            81.5%          81.0%   85.7%




                            Access News        53            81.5%          81.0%   85.7%




                            Discussions        22            33.8%          36.2%   14.3%




                            Convenient         56            86.2%          86.2%   85.7%




                            Faster Execution   16            24.6%          19.0%   71.4%




                            Fun                36            55.4%          55.2%   57.1%
The following was the result of the most preferred form of trade on the net

                    Category             Response             Number    Percent      Male   Female



           Preferred Trading Method   Full Service       23            24.7%      31.3%     30.0%



                                      Discount Broker.   31            33.3%      39.1%     60.0%



                                      Automated
                                                         8             8.6%       9.4%      20.0%
                                      Phone


                                      Modem to
                                                         11            11.8%      14.1%     20.0%
                                      Broker



                                      WWW                20            21.5%      26.6%     30.0%



                                      Traditional.
           Preferred Source                              12            15.0%      18.8%     0.0%
                                      Broker


                                      Automated
           of Information                                4             5.0%       3.1%      20.0%
                                      Phone



                                      Electronic         7             8.8%       7.8%      20.0%



                                      WWW                57            71.3%      76.6%     80.0%
Percentage of people who believe that the net will be popular: -


              Category                  Response        Number    Percent      Male   Female



    Interested in electronic       Yes             59            79.7%      79.7%     80.0%



    On-line trading?               No              3             4.1%       4.7%      0.0%



                                   Don't Know      12            16.2%      15.6%     20.0%



    Will the electronic trading    Yes             44            59.5%      57.8%     70.0%



    Become more popular            No              17            23.0%      23.4%     20.0%



    Than traditional brokers?      Don't Know      13            17.6%      18.8%     10.0%



    Will digital stock exchanges   Yes             34            45.9%      46.9%     40.0%



    Become more popular than       No              20            27.0%      31.3%     0.0%



    Traditional stock markets?     Don't Know      20            27.0%      21.9%     60.0%
Advantages of Online Trading
over Traditional Modes
   Eliminates manual order entry and paper trail
   Increases accuracy and speed of placing
    orders.
   Better record keeping by investors, brokers
    and regulatory organizations.
   Investors can make more informed
    investment decisions because they have
    access to vast amounts of data round the
    clock which can be accessed from the
    convenience of home, office or anywhere else
    the investor can get access to the Internet
Advantages of Online Trading
vs Traditional Modes(Cont.)
   The WWW also provides a wide variety of
    analysis tools to aid the serious investor.
    Such tools range from simple graphs and
    charts of historical data, to complex technical
    analysis that predicts the movement of stock
    prices. Investors also have the choice of
    using on-line portfolio tracking tools that can
    automatically place a buy or sell order when
    certain events are triggered such as an
    increase or decrease in stock price. All these
    tools serve the user by providing them with
    better information for making investment
    decisions.
Reality Check
   Perception of inadequate security &
    privacy
   Difficulty of electronic funds transfer
   Information may be inaccurate or false
   Risk of system failure
   Slowness in internet access or a digital
    meltdown
Reality Check (Cont.)
   Digital meltdown
   Caveat emptor
Future Trend
   Stock brokers will have to provide e-
    trading to remain competitive
   Resolution of perceived security issues
    will give popularity to electronic trading
   Advances in hardware and software will
    increase efficiency of electronic trade
    executions
    Choosing a safe Password

   Should not be names or personal information

   Should not be a word from the dictionary

   Should not be sequence of letters or numbers

   Should be at least 6 characters long

   Mix UPPER CASE and lower case letters

   Mix letters, numbers and punctuations

   Find a way to remember
             Symmetric Encryption
             and decryption
                   A                           B
Plain text                  Ciphertext                  Plain text

HI Bob.       Encryption     &#@*;t        Decryption   Hi Bob.




                           Key e = Key d
                Key e                        Key d


                 Myth -Clarification
   Thank You

								
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