This post is sponsored by Kim Dawkins. For full disclosure, click here.
A person’s family is the most important thing to them. Many sacrifices are often made to accommodate family members and their needs. While it may not always be possible to move to another job in an office due to family obligations, the internet has made it possible to discover new sources of income.
In this article, we will look at online trading and how it can become a source of monthly income that has the flexibility to be completed while attending the needs of your loved ones.
What is online trading?
Online trading refers to financial trades made on the stock or foreign exchange market. This is done through an online trading website that is considered a brokerage, such as CMC Markets. All of the buying and selling can be done from any computer or device that is capable of using high-speed internet. It became a popular way to trade since the late 90s due to the availability of new, fast computers able to use high-speed internet.
Online trading can seem like a daunting field to delve into. With the seemingly endless stream of analytical data and predictions, it can be difficult to get to an actionable point. As a beginner in online trading, a good place to start is by become acquainted with the terminology and news websites. On the internet, you have access to a vast amount of information that can be useful to begin your trading career. Begin by reading online guides and following stock news websites. Once you have established a daily rhythm with news sites, you can consider making a trial account.
The purpose of trial accounts is to give new traders a chance to trade without actually using their own money. The account is based on the real stock market but uses fake money. It can help get the initial jitters out-of-the-way, even if it is not real money. It can also help to familiarize a person with how to make trades in real-time.
Formulate a strategy
An important part of every trader’s success is their ability to create a solid strategy and then sticking to it. Buying and selling stocks and currencies should not be done based on your emotions at the time. When trading with thousands of your own money, it can be scary to see your stock plummet suddenly. Your first reaction may be to sell immediately only to find it bounce back a couple of days later. Trading strategies should specify when it is time to cut losses. For example, sell a stock once drops 20% in value.
Tips for new traders
For those starting out in online trading, a few basic tips can greatly assist in their eventual success in the sector. Here are a few tips to help you with your trades.
- Identify supply and demand imbalances – When a market’s supply is almost exhausted and buyers are still willing, prices for the goods or services will increase. If buyers are not willing and the supply is excessive, the price will drop. Learn to identify turning points.
- Be patient – Trading is not about making money quickly. Being a day trader does not mean that you will be trading every day. If stocks do not meet your strategy’s criteria then just be patient until the market is in your favour.
- Only trade with money that won’t be missed – An important part of being a disciplined and consistent trader is using only the funds that you can afford to lose. Trading with money that you cannot afford to lose can ultimately sabotage your chances of success in the long run.
- Spread your investments – Committing all or most of your fund on one trade is dangerous. A profitable and reliable portfolio is one that spreads the risk. There should be a balance between high risk and low risk trades so that one deal cannot affect the outcome of your success.
Being an online trader can free up your time to be able to tend to your family’s needs. It can be done from anywhere, including your home between trips to the school and grocery store. Begin your trading career today to be able to benefit from the flexibility the industry has.