Thanks to the advancement in technology, online share trading is now at your fingertips; but you would still need to know the basics for the best chance of profitability.
Intending to simplify the otherwise complicated trading process and ensure that it is accessible to everyone, many brokers – both traditional and new have set up online trading platforms. Almost anyone with an internet connection and a device like a computer or a smartphone can now participate in online share trading.
Thanks to the availability of a wide variety of trading platforms, both the professionals and the amateurs can trade or invest in stocks, commodities, indices, ETFs, Forex markets, etc. from anywhere of their choosing. However, as investing is a risky activity; there are some basics that you must know about to give yourself the best chance of profitability. The more you learn about the different financial tools, the better. But of course, you have start with knowing the ultimate basics. Keeping that in mind, here is a simple guide to get you off to the right track.
Don’t Underestimate the Value of Learning
Whether it’s an individual stock or a specific currency pair; the price of it seems to rise and fall constantly. The price is usually driven by a complex combination of micro-economic and macro-economic factors, geopolitical news, investor’s sentiments, and many others. So, you have to learn about each of these factors that drive the market prices as much as you can. Then, there are also some share trading instruments such as buying, selling, stop loss, take profit, leverage, etc.; learning about which is a must to start trading. Thankfully, there are a lot of resources available online including blogs and video tutorials to learn about most of these things.
Choose Your Broker Thoughtfully
There are many factors that can make or break the reliability of an online share trading platform. It includes registration with appropriate financial governing bodies such as CySEC or FCA, the availability of a great variety of stocks and assets from the global markets, the minimum deposit and withdrawal thresholds, the fees and charges, etc. The best online stock trading platforms also offer features such as graphical charts, technical analysis tools, newsfeeds, guides, and resources, etc. The ease of investing and maintain your trading portfolio is another key factor to consider while choosing your broker to trade.
Practice Your Way to Perfection
The more it gets easier to trade stocks online, the more risks it brings to the beginning traders and investors. Therefore, it’s paramount that you are confident about your knowledge and methods before investing a large sum of your money. A good way to do that is to utilize the demo account offered by many online brokers. You would be trading stocks real-time without using real money. This way, you can test all your knowledge, fine-tune your trading methods and trading goals, while also testing the platform’s features and reliability first-hand.