When it comes to online trading, we mean the ability to make transactions with all types of assets (currencies, stocks, metals, cryptocurrencies, bonds, futures, and others) on various OTC platforms and exchanges (Forex, stock and commodity) through the Network, using special software for this. The main advantages of online trading are:
- the speed of the transaction;
- Efficiency in the implementation of the decision on the purchase / sale;
convenience in obtaining information and in making a deal;
- wide variability in analysis tools and in the application of various trading strategies.
In general, you can make online transactions within 24 hours a day from anywhere in the world. This does not apply to trading in the stock markets, since exchanges do not work around the clock and in different countries in different ways. Their hours of operation are taken into account by competent traders on all types of transactions, it is at this time that the greatest trading activity is observed. It is convenient to track the time of trading sessions on 15 major world exchanges using special programs – the so-called stock clock.
Also, this type of trading on the stock exchange, with the competent work of a trader, can bring him a decent income or serve as the foundation for building his own business. The legal side is also positive: for example, when opening an account, you will be asked for the necessary documents that guarantee that the trading account belongs to you. It should be noted that you can track your trading positions, the movement of funds, as well as market news and quotes in online trading in real time.
Coaching with a trader
Coaching under the guidance of an experienced teacher helps to understand the intricacies of the exchange and work on it.
If we talk about the minuses, then these are, of course, high risks of capital loss. Also, despite the technical convenience and speed of execution of transactions, serious online trading requires a lot of attention, and, accordingly, the time spent at the computer. By the way, interactivity is not only a plus, but also the risk that at one “perfect” moment you may find yourself in a situation where it is simply impossible to connect to the Internet. Of course, in this case, you can contact the broker by phone, but this is not always realistic to do promptly, especially when working with foreign companies. Large traders, of course, have the means to neutralize such situations, in particular, by renting servers stuffed with trading robots and located in close proximity to the exchanges.
The disadvantages of online trading are absolutely justified by the high degree of psychological stress, because traders here not only receive huge profits from successful transactions, but also suffer serious losses. Therefore, before embarking on this method of trading, you need to make sure that you are ready to endure this roller coaster effect with firmness, and that you can maintain composure and control over the situation on sharp turns.
How do you make money with online trading?
The principle of earning money through online trading on the stock exchange, for example, or on Forex is simple and identical. To put it simply, in both cases, a trader needs to buy securities or currencies (including cryptocurrency) at a time when their price is low, and sell them when they rise in price, and make a profit on the difference.
In order to be “in the win” it is very important to be able to catch the trends of the market movement, to feel its mood. Now trading in the cryptocurrency market is of great interest, this is a completely new area.
As a rule, such a skill comes to traders over time, and the more experience and knowledge, the more successful transactions and higher profits.
How to make money on the difference in exchange rates?
Training in the courses of traders takes place both in the traditional full-time form and remotely.
To understand the market and predict its further behavior, professionals conduct technical and fundamental analysis:
- Technical analysis. This type of market situation forecasting is abbreviated as TA. It is an analysis of the situation through graphs and indicators. This type of forecasting allows you to understand at what point in time to make a purchase.
- Fundamental market analysis, or FA. This type of price forecasting is carried out by comparing the financial performance of companies, fundamental news from a particular country. This type of analysis suggests which country’s currency or which company’s stock to buy or sell.
In fact, it is quite difficult to draw a clear line between these 2 types of analysis. It is on the quality of the analysis that the final earnings in the market depend. It is quite difficult and problematic for a non-professional to apply such methods of analysis on their own, but this does not mean that Internet trading is closed to “green” traders. To help beginners, special virtual trading systems have been developed and created that can automatically carry out the necessarytopic and so on. As mentioned above, transactions for crediting / withdrawing funds from the account and accompanying services may be paid. Also, be prepared for the fact that you will need to pay for a digital signature key, the use of which is mandatory when making transactions online.