Beginner in online trading – practical tips for success

In recent years, online trading has become an effective way to grow your wealth. If some consider it a hobby to make ends meet, it is a full-time job for others. Whether you want to practice this activity part-time or full-time, online trading brings many advantages. Here’s how to get the most out of your stocks.

Online trading – an investment accessible to all

Online trading has undergone a major evolution thanks to the contribution of IT tools. In addition to being accessible to everyone, it gives each trader great freedom in managing their investment. Even if you are a beginner, you no longer need your broker or wait for certain times to make and monitor your investments. The platforms offer interfaces that give you access to your dashboard and allow you to follow what is happening on the market in real time. You can easily view your wins and losses. You can also continue or stop your operation as you see fit.

That’s not all, online trading also has the advantage of being easy to use. Recent platforms allow all those who wish to embark on this activity to offer training (free or paid). It is through these courses that you can learn about the basic principles of online trading, know and understand the subtleties of the field. You are completely free to contact an online broker. It should be noted, however, that depending on the platform of your choice, you are not obliged to use a broker. Your trading account can be opened at home, via the internet.

How to succeed in this activity?

If you are new to online trading, we offer you the 6 steps you need to follow to become a profitable trader.

Choose the right platform

There are many online trading platforms that have their own specificities. Each platform also has its pros and cons. It should be noted that online trading platforms are software used in a commercial setting. They present all the basic characteristics common to all software. With these software, you can manage your account and perform position opening and closing operations, from your computer or mobile devices. Here are some things to consider in order to find the best online trading platform:

  • Brokerage fees, which designate the fees levied by a financial institution acting as an intermediary. If you want to minimize your charges, look to platforms with lower fees. This choice will impact your activity provided that you do not need a large number of advanced features.
  • Accessibility of information: A better platform should provide you with all fundamental and technical information about online trading. It must provide real-time information on current events and key financial data.
  • Value for money: Most online trading platforms talk less about the charges that come with a transaction (bank fees and service charges). However, these fees inflate the cost of transactions and have an impact on the calculation of profits and losses.
  • Connectivity: To multiply your earnings, choose a platform that offers global connectivity to various international stock markets.

Get trained to master the techniques

Training is of great importance, whether or not you are new to online trading. Working capital, a computer and a good internet connection are not enough to start this activity. By following a good training before starting, you will master the basics as well as the workings of this activity. The training also helps you to minimize the risks and to know the different possibilities to buy and sell, but also to earn. Trading being different from betting, training offered by an expert in the field should be preferred. In addition to teaching you the basics, he also shares his experience. This will help you to get out of the game with certainty.

Learn how to win on the downside as well as on the upside

Trading when financial markets are rising is common practice among most traders. However, it should not be forgotten that in trading, the cost of stocks always undergoes a wide variety. If you want to multiply your winnings quickly, learn to win down as well as up. To succeed, plan your days well, identify your project and correctly define your initial capital. Even if the goal is to win, be prepared to accept losses and minimize them.

Set goals

The objective to aim for is of great importance in trading. Faced with this objective, you may tend to gather a large amount of data. It is true that this information is useful, but if it is too much, it can negatively influence your decision-making. To focus your efforts on the essentials, rely on the statistics, the chart plan and the price component. Then have a deep conviction about your goal to succeed.

Perform a technical analysis of each stock before buying

In the stock market, the technical analysis of a stock is based on the fluctuation of the price. This is an essential step to effectively define your trader profile. Indeed, if you want to buy shares, you will need stock market orders at a limited cost at the market price. You must also find a seller offering an advantageous price list. When the number of buyers and the number of sellers are the same, the price remains stable. The latter goes up or down when there is an imbalance.

Learn to control the notions of volatility and liquidity

A profitable trader has a perfect knowledge of the concept of stock market volatility. This refers to the average change in the price of shares in the short term. You will earn more, when it is high. In addition to volatility, mastering the notion of liquidity is also essential. This is the number of shares traded daily. When a stock’s level of liquidity is high, you can buy or sell on a whim, regardless of the time of day. If the level of liquidity is down, the price may undergo a large variation and you must wait for the right moment to sell your share at the best price.

Leave a Comment