Internet trading for beginners

Internet trading provides potential investors with many more opportunities and amenities than traditional investing through a broker or in mutual funds. And it’s not just about feeling your own omnipotence at the direct push of a button, seeing the market in real time and the ability to conduct dozens of transactions a day – instead of snail’s speed and phone calls to a broker. A tangible positive is the relatively low commissions and absolute transparency of the income received. After all, the user is responsible for each transaction. Therefore, no rumors that the management company underestimated the profitability of the mutual fund when returning a share are not terrible. And the time of fierce competition gives newcomers to investing a lot of opportunities that it would be a sin not to take advantage of.

Without the first step – we are not in a hurry to choose an online broker company

Experts recommend starting your investment via the Internet not with choosing an online broker, but with getting to know the system as deeply as possible. Fortunately, the opportunities during the formation of online trading are such that it is quite possible to master all the basic and deeper wisdom without making a final choice in favor of a particular company, and without even conducting transactions and without losing money.

Step one – go to seminars

One of the easiest ways to learn more about online trading is to attend seminars regularly held by brokerage companies. Moreover, while the new service is only gaining momentum, seminars are also held at the centralized level: experts of world significance are invited to promote investment.

Almost every company that provides online trading services arranges special training seminars. At the same time, some companies approach training thoroughly and conduct seminars of various levels: both for beginners and for those who are already versed in trading, have their own experience, but are not yet very satisfied with their results. Seminars for beginners, as a rule, are free and not very informative – they give information “in general”. Having visited even three different seminars of the starting level, it is impossible to begin to freely navigate the stock market.

In addition to free basic seminars, paid seminars are also held. The variations here are different – from a regular lesson once a month – to an outing for four days.

In order to attend seminars, it is not at all necessary to become attached to one particular company, however, the organizers make discounts for “their own”. In most cases, by looking at the seminars of various organizers, you can understand what this or that online broker is like and what to expect from it.

Step two – try our hand

A nice benefit for those who are starting to learn the tricks of online trading is the opportunity to take advantage of virtual training trades that will help you learn the terminal and see how successful personal investing can be. To do this, simply contact one of the online brokerage companies that provide educational trading. The closing of the trading day for students on virtual money does not occur along with the real exchange, but at 22:15, however, real exchange orders are available only until 17:00 (and on Fridays and holidays until 16:00). Of course, the best part is that the training auctions are absolutely free. In addition, most online brokers that provide access to demo trading can advise you for free and help you figure it out. The main thing here is not to be shy to ask.

Sometimes the possibilities of virtual trading are very diverse. For example, some companies, in order to maximally match the training trades with real ones, even write off the broker’s commission and the exchange commission from the virtual account for each transaction. Others organize ratings between portfolios of participants in mock trading. The only thing that needs to be decided by those who want to trade virtually is which program of the two relevant on the market they want to study. The more common Quik trading terminal or the less common Smart. In the end, if you have the time and desire, you can even try both of these programs to choose the most convenient one.

Step three – look at the analytics

Each company that is a bidder provides its clients with analytics. This can be either free access to the news feed of a well-known agency, or a selection of significant, according to experts, events that can affect the stock market. For a fee, you can order a more detailed and in-depth analysis of any enterprise. It makes sense to pay attention to the cost of analytics. As for its quality, there is only one rule here: in the analysis of information, it is better to rely on yourself. And the information itself is almost the same everywhere. In addition, the concept of “best analytics” is very relative. No matter how much a representative of an online broker beats his chest and says that his company’s analytics are the best – remember

ite: not a single analyst, in any company, predicted the fall in 2008 and the financial crisis on the stock exchange.

Step four – study the tariffs

Despite the fact that for almost all online brokers the cost of online trading is the same, the cost of the service for clients can vary significantly. So it makes sense to get acquainted with the tariffs and commissions in detail, as well as the terms of the service agreement (more on this below).

The last step – don’t be fooled

Although the income that can be obtained from online trading is comparable to the income of a business – that is, 50-60% per annum, remember that playing on the stock exchange requires not only money, but also time and talent. The market is still too underdeveloped to count on the inviolability of its work. Moreover, the stock market is generally an unpredictable phenomenon. Just as no one could predict its fall, so no one can predict the moment of its rise. That’s what will happen tomorrow, no one will give you accurate information. However, in order to be a successful trader, you may not know how much the stock will cost tomorrow. The main thing, as the masters of investing say, “limit your losses, let your profits flow and not take too many risks.