Adopting Online Trading - Annotated Bibliography Example

Online Trading Name Institution Placing buying and selling orders on financial instruments via the internet define the term online trading. Companies or individuals may prefer to use internet based trading platforms to sell and buy shares, bonds and other commodities due to its effectiveness. Online trading involves commodity exchange, commodity broker and customers. However, this setup can work to a company’s benefit or destroy the company. In this case, it is vital for any company or an individual to seek advice from a financial analyst. It is advisable that companies invest money that cannot cost the company heavy damages in case it is lost. Barrett, M & Scott, S. (2004). Electronic trading and the process of globalization in traditional futures exchanges: a temporal perspective. European Journal of Information Systems, 13, 65-79. Barrett and Scott analyzed the impacts of globalization and online trading. In order to make international stock exchange easier, the analysis emphasized on usage of advanced technology and ICT knowledge . In addition, the understanding traditional exchange programs are deemed essential in the provision of better understanding of online trading processes. The authors emphasize on benefits of online trading with regard to new investors. However, the authors caution beginners to invest smaller amounts as they learn trends in online trading (Barrett & Scott, 2004). This will help in understanding tactics and economic flow, rather than investing blindly. Douglas, Mark. (2001). Trading in the zone: master the market with confidence, discipline, and a winning attitude. New York, USA: Penguin Group US. The art of trading online is risky and requires people who are ready to face the challenges. Understanding online trading concepts are critical that is why Douglas’ main idea revolves around having a plan before carrying out stock or commodity exchange. The book is an easy read guidebook for beginners in online trading. In addition, the author talks about confidence and patients as tools required by any online trader to achieve the best. However, the author is repetitive while analyzing most of the ideas. On the other hand, the author’s concepts are theoretical rather than practical unlike Roth who uses real life situations to analyze concepts. Fontanels, G. A. (2009). Trade options online. Hoboken, New Jersey: John Wiley & Sons. Fontanels, author of “Trade option online” reviews the benefits of having computer knowledge among persons interested in online trading profession. The author analyses the skills a trade options requires to be successful in the business. In addition, he acknowledges specific hardware and software tools that are essential for better transaction. Due to the risks associated with online trading, Fontanels gives beneficial measures on how to manage trade accounts effectively. With the help of hypothetical examples, Fontanels helps the reader to master concepts like maximum risks and maximum profits (Fontanels, 2009). However, the book only dwells on the advantages of online trading rather than giving emphasis on negative and positive effects of online trading. In the end, it shows that the author discusses issues by being bias. Gietzmann, M. & Raonic, I. (2012). Thinly traded growth stocks: A joint examination of transparency in communication and the trading platform. European Accounting Review. Reviewing the article by Gietzmann and Raonic, gives the reader ideas on how to choose best platforms to implement when it comes to online trade issues. While considering different perspectives, the authors give systematic analysis on the issues affecting online trading. The authors focus more on transparency in communication as a tool for stabilizing market trends. Communication systems among commodity exchange, commodity broker and customers, are crucial in determining the closing notion (Gietzmann, & Raonic, 2012). Therefore, online trading accounts should be effective with Hotmail numbers that are reachable and secure all the time to avoid bad deals, which are common, in today’s society. In the end, online training will be favored by most people and improve as desired. Klein, L., Dalko, V. & Wang, M. (2012). Regulating competition in stock markets: Antitrust measures to promote fairness and transparency through investor protection and crisis prevention. Hoboken, New Jersey: John Wiley & Sons. Online trading is a risky way to invest money by investors. However, it can be beneficial if policy makers of the stock market exchange reinstate fairness and transparency policies to benefit investors. For example, financial markets should be analyzed making competition worth, stabilizing the market and reducing unjust practices that may hinder online trading transparency (Klein, Dalko & Wang, 2012). In addition, the authors consider economic instability as a factor that limits discourages people from trading stocks as financial status of different economies are poor. In the end, online trading becomes risky especially to people who are trading huge amounts of money. Lau, A., Yen, J. & Chau, P.Y. K (2001). Adoption of on-line trading in the hong kong financial market. Journal of Electronic Commerce Research, 2(2), 58-65. The platform for online trading has been questionable due to its complexity among believers. According to the authors, adoption of online trading requires investors to be psychologically prepared to learn new developments. Practical examples are placed by using Hong Kong’s financial market as an example to show how positive attitudes successful traders. Understanding the financial trends in the stock exchange markets are samples of platform that need to be adopted by investors. In addition, training commodity brokers on how to expand their market is key in online trading. In the end, online trading policies should maximize training and giving people tips on best sites to depend on. Li, Y. M., Lee, J. Cude, B. J. (2002). Intention to adopt online trading: Identifying the future online traders. Association for Financial Counseling and Planning Education, 13(2), 49-66. Retrieved from http://www.afcpe.org/assets/pdf/vol1325.pdf. This article analyzes major ideas that lie in online trading. The authors portray several techniques essential in handling online trade as opposed to traditional aspects of stock market exchange. Investigation carried by the authors analyzes prospects of different brokerage accounts and trading frequencies associated with e trading. In addition, the authors looked into psychology aspects that can affect investors due to the risky measures involved in the practice (Li, Lee & Cude, 2002). The authors give samples on how to understand and adopt online trading. This helps in building confidence and transparency in the online trading business (Klein, Dalko & Wang, 2012). Roth, J. (2002). Technical trading online. Hoboken, New Jersey: John Wiley & Sons. Issue of online trading requires in depth understanding of what the operation has to offer. In this case, Roth uses real life situations while trying to analyze the technical terms used on online trading just like (Fontanels, 2009). The author introduces four online trading rules, which are vital for anyone interested in online trading. The four rules include, allowing the profit to run the business, trading should always follow stock exchange flows trader should always cut loses and a trader should focus on profits rather than averaging down on losing positions (Roth. 2002). However, Roth does not focus on raising some challenges that may affect the trader in the business. In the end, it limits a learner on knowing the darker side of the business. Saenz, A. E. (2000). 10 minute guide: Stock market investing. New York, New York: Macmillan. Online traders have to be strategic while handling stock exchange. According to Saenz, it is empirical to understand the stock market exchange from the trading floor (Saenz, 2000). “10 minute guide: Stock market investing”, helps a reader understand the issues revolving trading stocks from the traditional perspectives. In addition, the guidebook is easy to analyze and a preference to people who would like to understand issues of stock market exchange in a wider perspective. On the contrary, the author does not have guiding principles on how technology can be used for trading stocks. Technology has been evolving, and many people are adjusting to online trading, as it is cost effective. Therefore, the author should have included aspects of online technology in the book. Zerni, M. Haapamäki, E. & Järvinen, T. (2012). Do joint audits improve audit quality? evidence from voluntary joint audits. European Accounting Review, 21(4). 731-765. Audits are vital tools for examining the transparency of companies and the management instituted. These tools can be carried out in online trading sites to ensure that they are worth using. In addition, carrying out audits help in improving the quality of systems used for computerized training. When trading accounts employ auditors to analyze their systems, reports are released that show areas that need modification (Zerni, Haapamäki & Järvinen, 2012). This also helps in creating transparency in order to attract more customers (Klein, Dalko & Wang, 2012). In the end, rectifications made in accordance to the audits will enhance financial safety. Reference List Barrett, M & Scott, S. (2004). Electronic trading and the process of globalization in traditional futures exchanges: a temporal perspective. European Journal of Information Systems, 13, 65-79. Douglas, Mark. (2001). Trading in the zone: master the market with confidence, discipline, and a winning attitude. New York, USA: Penguin Group US. Fontanels, G. A. (2009). Trade options online. Hoboken, New Jersey: John Wiley & Sons. Gietzmann, M. & Raonic, I. (2012). Thinly traded growth stocks: A joint examination of transparency in communication and the trading platform. European Accounting Review. Klein, L., Dalko, V. & Wang, M. (2012). Regulating competition in stock markets: Antitrust measures to promote fairness and transparency through investor protection and crisis prevention. Hoboken, New Jersey: John Wiley & Sons. Lau, A., Yen, J. & Chau, P.Y. K (2001). Adoption of on-line trading in the hong kong financial market. Journal of Electronic Commerce Research, 2(2), 58-65. Li, Y. M., Lee, J. Cude, B. J. (2002). Intention to adopt online trading: Identifying the future online traders. Association for Financial Counseling and Planning Education, 13(2), 49-66. Retrieved from http://www.afcpe.org/assets/pdf/vol1325.pdf. Roth, J. (2002). Technical trading online. Hoboken, New Jersey: John Wiley & Sons. Saenz, A. E. (2000). 10 minute guide: Stock market investing. New York, New York: Macmillan Zerni, M. Haapamäki, E. & Järvinen, T. (2012). Do joint audits improve audit quality? evidence from voluntary joint audits. European Accounting Review, 21(4). 731-765. Read More