Online trading

Ready to start online trading? Here’s how you can make it work

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This article is written for moms and dads who dream of becoming traders, but don’t have the time or patience to figure out where to start.


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So where do you start your journey as a trader? You’ve done your homework, looked around, and now you’re ready to begin your journey to financial independence as a trader. Since you are full of dreams and expectations, but new to this field, where do you start?

It is not easy to answer such a question, as your pride often makes it harder to ask questions around you and get answers from friends and colleagues.

But please don’t be afraid! I’m here to help you find your compass course, and navigate directly to you by realizing your ambitions.

What tools do I need to start my new career?

In most cases, you only need a smartphone to transact.

However, I would suggest a decent laptop since you could get around. You can also do plenty of research and analysis while remembering to always take notes. A computer will not only be useful; it’s essential.

Another key thing to remember is that without internet access, you are not an online merchant. You will have to do laborious operations like calling your broker on the phone to place trades, which can be problematic. Also note that several brokers simply refuse to accept calls at present online.

What should I trade?

The next step is to decide what you are going to trade. As a preliminary warning, some asset classes like cryptocurrencies can change by more than 15% in a single day. Commodities such as oil, currencies and stocks can also experience wild swings very suddenly, especially due to emerging economic or political news.

Volatility, the up and down movements of different asset classes, will influence your trading style and, of course, there are more complicated products to discover after your introduction, including financial derivatives such as futures and the options.

Find a reputable broker?

Finding a reputable (and reliable) broker is vital, and therefore, regulation, reputation, and best-in-class services are the crucial aspects to look out for. Nevertheless, the breadth and depth of customer support should also be an important consideration for novice traders, due to the volume of questions that can arise when looking for a trading career.

Another noteworthy point is your prospective broker’s complaints procedure and ability to retain data. Since your broker will be executing your trades and retaining your private data for several years, it is imperative to perform due diligence on your broker’s regulatory record, corporate stature and perhaps most importantly, posture. capital adequacy with its liquidity providers.

So how do you find the right broker for you?

The answer is simple: you go to Google.com and search for “how do I trade forex” or “trade stocks”, or enter a combination of other trading-related terms; the end result will be the same.

A full kaleidoscope of brokers will appear and the challenge will be to tick all the boxes to ensure that the broker you have chosen meets all the required criteria, and more. Choosing is harder than it looks.

Regulation, reputation and the best services are the main considerations, and be sure to pick up the phone and speak directly to several representatives before committing to opening an account. Ask where the broker is regulated (and check). Don’t be afraid to engage your potential broker via online chat and call your nearest representative office to ask where they are and if you can stop by for a visit. To visit.

After finding your broker, what is the next step?

Learning the ropes is an essential part of becoming a successful trader. You will have to educate yourself one way (the easy way) or another (the hard way). The easiest way is to learn and make mistakes on a simulator and/or with very small amounts of capital. The hardest way is to overcook your market entry and burn all your financial bread and butter in search of pips and profits.

If you decide to go the technical analysis route, you need to practice applying technical analysis, or in other words, studying past price action and using pattern recognition to develop a trading strategy.

If you choose the path of fundamental analysis, or what is also known as “trading the news”, you should familiarize yourself with macroeconomic developments and the economy in general.

If you are going the hardest of all routes and trying to become a high frequency trader (HFT), you will need to learn how to code macros, functions and algos as part of your trading strategy.

How can I educate myself?

The simple answer is that training in trading is obtained in the same way as any other training: via direct coaching, a course, a webinar, YouTube, reading a book or, by self-taught trial and error. Keep in mind that in modern times you can join a trading group or get direct mentorship from someone who is already trading.

Nowadays, you can check what other traders are doing and how they are performing in “social trading” with the ability to copy the decisions of famous trading celebrities such as Warren Buffet and Elon Musk. Since their transactions are public information, anyone can log in and replicate the same asset purchases in real time.

What kind of risk should I take?

When it comes to trading, risk management is paramount. Prudent traders should never exceed their limits and cross the cap of the game, as this necessarily means the odds are stacking against you. If you have a risky attitude, the more frequently you trade, the more likely you are to lose all of your capital.

Popular new instruments such as CFDs or futures use leverage. In other words, a multiplier that amplifies a trader’s capital base up to 500 times, in which case even a small change in the price of the underlying asset can result in large losses. Additionally, sudden price dips can leave traders owing money to the broker if their account moves into negative territory – a distinct possibility when market “gaps” appear during periods of low liquidity such as weekends. .

Beginner traders are therefore advised to consider appropriate “stop out” levels when trading. In other words, how much of your capital base are you willing to risk in a given trade.

For products with 1:1 leverage, you need to learn and understand the factors driving daily movements. With stocks, key announcements such as financial performance figures and changes in direction influence the market price on a daily basis.

If you decide to trade cryptos, one of the most volatile financial products in history, your capital is even more at risk. Combining leverage with cryptocurrencies simply raises the stakes and amplifies the already large potential for a big profit or loss.

A word of warning: if you combine leverage with crypto products, you could end up losing your entire investment in the blink of an eye. Conversely, if you back the right asset at the right time, you could bring in an exorbitant amount of money. The choice and the risks are yours.

Global thinking

If it’s the thrill you’re looking for, you’ve come to the right place in trading. Just like rafting, be aware of the risks and familiarize yourself with the guidelines, as defined by seasoned professionals. Build your experience at a gradual pace and wear your safety gear at all times, but be prepared for an exhilarating but risky endeavor.

Set goals and work to a plan that you execute like a pro. Follow the process, not the result. Win that car, buy that house and travel the world. Take control and become the leader and commander of yourself that you deserve to be.

Remember: trading necessarily involves risk and the possibility of losing your capital, so only invest what you can afford to lose. Not a penny more.

Related: What Kind of Trader Are You? An introduction to trading behaviors