With the introduction of the internet, more and more people are starting to trade online. Traditionally, most people will trade via their own brokers.
For newbies you will be overwhelmed with all the jargons used on trading but you can start slowly. Good to network with people who are already trading online and who be able to share their knowledge with you. No one knows everything, you need to start somewhere and everything comes with experience.
Before you embark on trading online there are a couple of things you need to be clear about:
1. You must have easy access to a home computer and a reliable internet connection.
You need to check with your local internet service provider.
2. How much you can invest?
You must know how much cash you can invest and do not put all your cash in one basket. There are many instruments whereby you can put your cash.
3. What is your choice of risks?
There are many ways you will be able to invest your money and which is less risky. All investments come with risk and which kind of risk you are comfortable with.
4. What would you like to trade?
There are many trading instruments,
a. Stocks or Shares
b. Options
c. Warrants and futures
d. Indexes
e. Forex
f. Commodities
g. CFDs (Contracts for Difference)
5. Which country would you like to focus?
It may be easier to start with your home country. However, I personally prefer to trade in the US market because of more liquidity.
6. Which online broker to use?
They are many online brokers in USA and you need to understand the products and information offered by each of these brokers to make a decision.
You must have a trading plan with realistic goals and expectations and you must be discipline to execute your plan. There is no such thing as loss free for all trades. You are able to differentiate the amateurs from trading gurus, who know when to minimize their losses and move on to make big gains.
The above is my personal views which I wish to share. You are welcome to share your views, any veteran who have great exposure may also post your comments and use this as learning platform for newbies. Thanks.
http://www.youronlinetradingguide.com
Tags: online broker, online trading, options, stocks, trading online, trading plan
Related Posts
| 
Designed By : 
Get this skin at : 