Online stock trading opened up a whole new avenue of trading in stocks.
Anyone, anywhere could trade in stocks through the internet.
The need to live near a stock exchange with hands on access to the market was eliminated.
Online trading became faster cheaper and the volume of trade increased through online trading.
Trade could be executed faster and on the global scale.
When rating stocks for online trading, a few significant factors should be kept in mind.
Information available about the stock.
Novice traders should refer to reputed financial websites to learn about stocks.
Stock exchange websites, newspaper financial pages and a number of other websites give an insight about the type of stock, the company and the potential for profit from the stock The quality of the company that offers the stock.
The company that offers the stock should have a solid reputation of paying dividends and fetching profits when the stocks are sold.
  The older the company the more stable it is.
Age is not the only criterion.
Newer companies with good products will provide profitable stocks.
The quality of the assets of the company is an important factor is rating stock.
A company with substantial assets will have valuable stock.
If the company goes bankrupt, it can be revived by selling assets.
The companies product or service.
Some products of companies have enduring appeal.
They are not likely to lack customers.
Fast food companies, Hotels, pharmaceuticals, healthcare products and such companies are examples of products that will not go out of the market.
These products will always have customers.
  The quality of the value of the company's stock.
The market is not an indicator of the value of the stock.
The reputation of the company is the indicator of the value of the stock.
Many traders buy stock which does well on a market day and falls the next day in the hope that it will increase in value.
Experts believe that this is a myth and stock should be rated by the quality and stability of the company.
Who else is buying the Stock.
Institutional sponsorship is a vital component of buying good stock.
When banks and mutual funds buy stock they are guided by an expert financial team.
Traders would do well to keep their eyes on what institutions are buying to understand the profitability or otherwise of the stock of a particular company.
The quality of the investment in the stock.
Stock trading is not only about buying and selling.
Traders can use stock purchases as an investment.
Stocks pay dividend.
Investing in companies that have a reputation of paying a steady if not substantial dividend is a factor that should weigh heavily while choosing and rating stock.
Rating stock for online trading is required because real time brokers do most of the work for real time customers.
The online trader needs to carefully evaluate stock on the basis of several factors and by reading financial reports to make the best profits.