Online trading or wikipedia said Investing online is “the norm for individual investors and traders over the past decade with many brokers now offering online services with unique trading platforms.” source Wikipedia. For beginners, especially who do not have experience, online trading will be very heavy. Believe me. If you do not have enough knowledge about stock trading, the market will eat you whole. Market is cruel, and unforgiving to the beginners who dreams of becoming rich overnight.
However, trading skills can be learned. and in the long term could provide tradeoffs benefit if you have found a “trading secret” that fits you. In the future, your patience will pay off.
Many of the old school assumptions and even still hold until today, that stock trading is gambling. That’s not entirely true, but also not entirely wrong. The truth is that stock trading is to learn about the company fundamental and stock technical knowledge. There is probability in the stock trading, and with no emotion plus wise calculation, we can win this stock trading game.
In online trading, you need to learn about the importance of comparisons risk and reward ratio. Risk and reward ratio can be briefly described as comparisons between the level of income that you will get compared to the level of risk that you will face. It is simply the risk / reward risk comparing the output with the input. If the reward is bigger, meaning that online trading worth the investment to be realized, and if the opposite when the risk is greater than the profit you can resist the urge to online trading.
There are several types of online trading. Forex, stocks, gold, index, and other exchanges. One of the advantages of online trading compared to conventional trading is there stop loss feature in online trading. So on online trading, if you have set a stop loss at a certain rate, then when that number is reached, the system will automatically perform the task for you. It is good for those who are not full-time online trading, such as a swing trader or position trader.
Richest online trader said to invest with a minimum amount of 10% of your income.
Set or create specific goal, and separate it in several term. Determine available time, example for education funding available 10 years, fund planned to buy a house 5 years from now and to fund needed vacation time (eg ) 9 months from now.
Determine your investment instruments based on the available time.
If you want to jump in online trading, you need to register with an online trading broker, on the internet there are many good online trading brokers. You can look it up on Google. There are online trading brokers that are specific to one or two types, for example a gold broker, forex broker, broker index, stock brokers and others.