Online trading can be overwhelming, especially for beginners, as there are hundreds of different trading platforms available with somewhat complicated features. Not only do you need to be knowledgeable about trading specific assets, but you also need to know how to manage your investments and make the right decisions when you’re trading online. For this purpose, we have compiled a list of great tips that will help you start trading successfully as a beginner.
Reliable Trading Platform
Due to the rise of the online trading market, today there are hundreds of reliable trading sites emerging every day, but because this is a fully decentralized market that entirely functions online, you might occasionally encounter an illegitimate trading site. Obviously, this is a great concern since you are sharing your sensitive data, including financial information, and you are trading on that platform which is why you need to do your research before you create an account on any trading site.
The first step in order to check whether the platform is trustworthy is to find more background information about the company. This includes researching any previous complaints and user reviews, as well as any relevant licenses that demonstrate its reliability.
For example, Forex brokers need to have a legitimate Forex license in order to operate legally on the market. If they are a UK company incorporated in the UK, then their license will be obtained from the Financial Conduct Authority (FCA), a regulatory body that supervises the financial market in the UK.
That said, every country has its own set of regulations regarding online trading, which means it will have its own regulatory body that is responsible for online trading. For example, in the USA, FINRA is the best place to learn about a broker’s status.
Fortunately, today there are actually trading sites that are perfect for beginners and provide many resources, including e-books, tutorials, as well as learning materials that are suitable for anyone that’s just starting out in this field. In case you want to learn more about different assets is important to check out whether the trading platform provides comprehensive educational materials on the topic. For example, there are online trading sites that educate their members on stocks, ETFs, cryptocurrencies, and other assets.
Other trading sites might even offer access to investor dictionaries or have regular webinars on the most important financial news. Of course, it can be a bit difficult to find trading sites that offer all of these options, but you can definitely find a reliable trading platform that caters to newbies and provides comprehensive information on topics that are relevant to your financial goals.
If you have any doubts, you can always contact friends that had similar experiences in this sphere or check out recent reviews from other users that are beginners like you on that particular platform. The good news is that now more than ever trading is accessible to beginners with modern resources to educate you on any topic.
Many trading sites today have a high-quality mobile application that is not only useful for accessing your account on the go and making orders from your smartphone, but it can also be a good approach for you to learn trading on the move as well especially if you register on a training site which allows you access to every functionality and feature from the mobile app.
Fundamental and Technical Analysis
As a newbie, you should never stop learning, and you might even need a market crash course, but otherwise, it is equally important to understand fundamental and technical analysis. In simple terms, technical analysis is used to predict the direction of prices based on past market data and price movement.
With fundamental analysis, on the other hand, you are analyzing the financial statements of the company, its revenue, as well as the competition in the market and the economic conditions. The main goal of the fundamental analysis is to determine whether the investment is overvalued or undervalued.
Both are important for your financial decisions, and although it might take you some time to become well-versed in fundamental and technical analysis, it’s still helpful to even understand the basics of each analysis.
Before you set up your account, make sure to read the pricing policy of the online trading site. Each trading platform will have slightly different fees, and there are various costs that you should be aware of. Starting from processing fees, contract fees once a trade is completed, currency conversion fees, account maintenance fees, and other additional costs.
This is why you should take the time to learn the overall pricing policy prior to your registration on the site. If you have any doubts, make sure to contact the customer support agents, while it could also be beneficial to compare different trading platforms cost-wise.