What is online trading?
Technically, Online commerce Allows you to buy or sell financial assets. In other words, online trading is about placing orders to buy or sell financial instruments for profit as quickly as possible.
To start trading on the Internet, you must:
- Open a trading account on a platform dedicated to this activity
- deposit money
- Place order
Before you start working in the financial markets through online trading, most brokers offer you a demo account “hand” without taking any risk.
Choose the right trading platform
It is better to choose one of the best online brokers. In fact, this platform will be, in effect, your financial intermediary between you and the financial market. So it is necessary to carefully choose a serious platform that offers good solutions for beginners with optimal conditions to start with.
Financial markets are very volatile. So it is necessary to take the necessary time to learn well. Apart from tutorials and other training, you should first simulate orders on a demo account before going to the deep end. This first step will allow you to define your trading profile and your most preferred markets.
Online Trading Strategy
There are several strategies for investing your money in the stock market:
In swing trading, the trader opens positions with a longer duration (usually 24 hours and more than a week). The disadvantage of this type of trading is often the swap fees that are charged by the brokers on a day-to-day basis and which can ultimately affect the outcome.
Online social business
It is an easy to use interface that allows professional or amateur traders to share their strategies. It is better to choose a trading platform that allows neophytes to choose a broker that offers social trading
Online Day Trading
Day trading is a strategy based on daily opening of positions not exceeding 24 hours. In its most “sporty” version, there is scalping, which is based on positions with high leverage for a few minutes at most.
Day trading is indicated for investors who favor the greatest number of opportunities, while optimizing their success rate between winning and losing trades. It is considered that traders become profitable from the moment they exceed a success rate of more than 50%.
Day trading allows you to:
- Diversify your portfolio quickly
- Increase your profits (or losses) quickly
Copy trading can benefit investors assignment. Here the broker connects novice investors with professional traders who literally copy the former. Here, we basically replicate orders placed by professional or ultra-skilled traders. This is a good way to grow your capital at low cost!
Advantages and disadvantages of online trading
Advantages of Online Trading
- Trading is possible online 24 hours a day
- Opportunity for rapid initial capital growth
- A wide range of financial instruments
- Affordable brokerage fees
Disadvantages of online trading
- Very high risk exposure
- Training in technical analysis is required to optimize trades
- Very time consuming activity; Especially if leverage is used
Choose AvaTrade to start trading online
AvaTrade is one of the most influential online brokers in the French market. It meets both safety and regulatory standards. Also, the platform offers a complete product offering to effectively diversify its portfolio. AvaTrade offers super-responsive customer service with competitive pricing and very well-designed online training courses for beginners.
Created in 2006 under the name AvaFX, this platform specializes in trading:
- raw material
The platform is available in Europe, Shanghai, Milan, Sydney, Tokyo, South Africa and Nigeria. It offers novice traders the possibility to use powerful platforms such as: MetaTrader 4, MetaTrader 5, AvaOptions or AvaTradeGo. So what are we waiting for to start our first business?
Invest what you can afford to lose
Online trading is a risky and volatile investment. Trading means you can win or lose. If you use leverage, you can make a lot of profit quickly but lose a lot very quickly. Overall, before investing, you should bet on the money you can afford to lose.
Article by Bertrand Dubourg – www.linkedin.com/in/bertrand-dubourg-934b691b6