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6 mins read . 29 Dec 2022
If you are a trader in the stock markets and rely on online trading, you must be facing some typical technology problems. How to ensure that your machine speed is not compromised? How to ensure no virus attacks or malware attacks on your PC? Is it possible to create a username and password that you can remember without any hassles. The list can go on. The point is that online trading may look simple, but it does bring with it certain challenges with reference to security, safety and access. Here is how you can ensure security and a smooth process when you trade online.
While the user name is something that is normally allocated by your online broker, the password can be set and reset by you. In fact, most brokers would insist that you change your password twice a month. However, here are some basic points to remember. Firstly, don’t set your password as obvious characters like your age, name, date of birth etc. If the broker is offering a dual level of authentication, opt for it as it makes you creative and safer. The second level of security makes life smoother for you.
One of the challenges of changing the password frequently is remembering the latest username and password. It is advisable to keep changing your passwords first in fifteen days at the very least. Make it a point never to share your passwords with anybody, not even your own family members. This can prevent a lot of misuse of funds by the trader.
This is an important consideration. You must take precautions about where you are accessing the internet trading account from. Ideally, access your trading account through a single laptop or a single mobile number only. Firstly, ensure that antivirus software and the anti-malware are loaded on the PC; with regular updates. For instance avoid using your trading account at cyber cafes, public wi-fi like at airports, railway stations etc. Don’t take chances if the system is too slow as it could be trackers slowing the system down. You can get rid of them before starting to trade.
Today, most people have the habit of downloading stuff on their PC and also on their mobile. Unlike in the past, the availability of quality bandwidth and low costs have helped a good deal. Many sites have trackers and can be best avoided. Any self-authentication is only if the system is not compromised and if the files are too small, they would have happened by now.
Most of your trade data is backed up in your secured trade login. But it is always advisable to have your contract notes, trade ledgers and holding statements stored separately on a regular basis. Ideally, you can store it in a cloud server like Dropbox or Google Drive and that is good enough. You can add that with additional external storage in a drive which can be a typical Seagate or Sony storage product.
Physical copies may sound outdated, but it still makes sense to use these physical copies for your own random trade analysis, tax planning purpose etc. It is a lot easier when you try to approach a bank or the income tax department for any clarifications. It also means that in the event of computer downtime or server downtime, you can still handle the pressure.
As much as we all depend on technology for our routine needs, it is necessary to remember that you should double-check data to be doubly sure. Things would be on auto mode, but a second check is always warranted. For example, once you place an order, check in the order book and the trade book to gauge the latest status. Also, review contract notes daily, including the cost, price of purchase, the break-up of statutory charges etc. More than anything else, you must ideally do a weekly reconciliation with your bank, DP account and your trading ledger. By putting such checks and balances in your trading account, you can obviate most of the problems you face in online trading.