Online Trading: Getting Started Guide

Written by K T

On May 5, 2020

Modern technologies are making life easier for us, there is no doubt about it. The Internet in particular has transformed old complex operations into simple gestures that can also be done from home, without even leaving your desk… that also applies to the stock exchange. Investing online has become accessible to anyone. But there is still risk. Indeed, the ease of access to online trading platforms is likely to lead unwary and inexperienced people to make risky investments. Does online trading allow you to make money? The answer can be positive. But you must first rely on a suitable guide. Without it, and without knowing the basics of the “game”.

Trading on the stock market online, especially for beginners, certainly requires the right support. We should therefore avoid sites that promise too much, and first of all turn to virtual trading platforms, particular portals that simulate financial activities allowing you to manage your capital invested on the market.

We then move on to the “real” mode. How should anyone who approaches this world move for the first time? The ideal instrument for beginners, or for those who generally want to invest on the stock market but start with a small capital, are the “derivative instruments”, financial securities whose value depends on other securities, called the underlying. By investing in a derivative, and forecasting the trend appropriately, you can earn both when the security rises and when it falls. There are many types of derivatives, but for small investors who want to play online, it is better to choose between two types: CFDs or binary options. CFDs (Contract for difference) exactly replicate the share price and ensure profits proportional to the change in the aforementioned price, provided that the change is that expected by the investor. By moving with CFDs, the trader can decide to close a position whenever he wants, instantly selling a share when the price drops. Trading even closes automatically if the trader sets a maximum loss value before opening the position.

There are also trading platforms suitable for all types of users, be they experts or beginners. They allow you to operate intuitively, or even by adding specific graphic functions that only the most prepared will be able to take full advantage of. Among the settings that help the “newbies” we must mention the “stop” and “limit” orders, which allow you to limit losses and take advantage of increases automatically. To get a broader overview, I suggest you take a look at our newsscraper.com

But as much as an investor is prepared, the best advice we can always give is to rely on a professional broker, in short, someone capable of moving in the markets with experience and security. At this point, hoping to have put yourself in the hands of a serious professional, you can start enjoying the many advantages of playing on the stock market online.

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