Trading is a way to earn money quickly and in unlimited quantities, which explains its popularity and appeal to many people. Yet, although the online trading has become more accessible to retail investorsit is important to get informed, especially when you are starting out.
In this article we will give you some tips to get you started trading and know where to start.
What is online trading?
Trading is basically an English word, which means action to buy and sell Financial assetsthat we call securitieson the stock markets.
It is the traders, also called negotiators in financial products, employed by financial institutions, who are responsible for carrying out these actions in physical stock exchanges.
the online trading is now accessible to everyone, it is the fact of buying and selling financial assets directly on the internet, via a stock broker who is an intermediary. Anyone can trade online today, from home. Online trading can be a main activity as well as a secondary activity, carried out outside of working time.
the online trading generally invests its own capital and can choose to do forex trading (foreign exchange or currency market), cryptocurrencies (Bitcoins….) orclues (linked to sector performance). A craze of retail investors concerns the trading of Forex and cryptocurrencies. (If you’re a crypto enthusiast, remember that capital gains are taxed.)
What you need to start trading online
To get started in online trading, you need at least one Internet connection and a bracket (computer, phone, tablet….). Then you have to choose a trading platformand a stock broker (broker) who will be your intermediary.
Among the best-known brokers is eToro, which among other things allows you to trade forex trading but also of cryptocurrencies, ideal for the beginners. Or Saxo Banque, which stands out from other brokers in particular through its very wide range of available products, find out more.
Pay attention to choose your broker wisely (broker): he must to be regulated by the AMF (Financial Markets Authority), Cysec, FCA or ASIC for example. It should allow you to learn to trade via a virtual demo account (and not to invest directly at the risk of losing your money) and have all the tools to meet your trading needs.
Practice to trade
To can good online trader it’s necessary :
- train in trading and learn the basics of the stock market
- practice on a demo account
You will find lots of trading training via seminars, books or on the net, free or paid. Choose those offered by your broker or recommended by trading references. This will allow you to avoid lose your capital foolishly.
All you have to do then is practice on your demo account, on the trading platform you have chosen. The platform will allow you touse fictitious capital, which you can trade in real conditions. Without any risk for your capital, hence the name of paper trading (virtual stock market).
Make money with trading
After the training and training part, you are ready to trade online in real conditions : your goal is to earn money, bearing in mind that trading online involves risk. You must know that you will have both profits, but also losses….
We therefore advise you to earn money by trading online:
- Train while training in trading at least 1 to 2 months
- Define a trading plan (strategy, objectives, markets and financial products chosen, unit of time, routine to adopt, etc.)
- Define a money management plan (management of your capital) that you will respect
- Start trading online by investing small amounts
- Trade slightly larger sums as you progress
- Control risks and keep your objectives in mind
- Improve your trading techniques to progress by training and monitoring
You can now start trading, by following these few tips.