What is online trading?
Technically, online trading allows you to buy or sell financial assets. In other words, online trading consists of placing orders to buy or sell financial instruments in order to make profits as quickly as possible.
To start shopping on the Internet, you must:
- Open a trading account on a platform dedicated to this activity
- Deposit money
- Place orders
Before you start operating in the financial markets, through online trading, most brokers offer you a demo account “practical experience” without taking any risk.
Choose the right trading platform
Better to choose one of the best online brokers. It is actually this platform that will in reality be your financial intermediary between you and the financial markets. It is therefore necessary to choose a serious platform that offers good solutions for beginners, with the best prerequisites to start cautiously.
Financial markets are very volatile. It is therefore necessary to take the necessary time for good learning. In addition to Tutorials and other training, you must first simulate orders on a demo account before jumping into the deep end. This first step allows you to determine your trading profile and the markets you like best.
Online Trading Strategies
There are several strategies for investing your money in the stock market:
In Swing Trading, the trader opens positions with a longer maturity (more than 24 hours and a week, generally). The downside to this type of trading is often the swap fees that brokers charge day after day, which can affect the bottom line.
Online social commerce
This is to use an interface that allows professional or amateur traders to share their strategies. 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 openings of positions that do not exceed 24 hours. In its most “sporty” version, there is scalping, which is based on positions with high leverage, for a few minutes maximum.
Day Trading is indicated for investors who prefer the maximum number of options 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:
- Quickly diversify your portfolio
- Quickly increase your winnings (or losses)
Copy trading can benefit investors delegates. Here, the broker connects professional traders with beginners who literally copy the former. Here we basically replicate orders placed by the professional or ultra-competent trader. It’s a great way to grow your capital at low cost!
Advantages and disadvantages of online trading
The benefits of online trading
- It is possible to shop online 24 hours a day
- Possibility to quickly grow initial capital
- A wide range of financial instruments
- Affordable brokerage fees
The disadvantages of online trading
- Very high risk exposure
- Must train in technical analysis 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 on the French market. It meets both safety and regulatory standards. In addition, the platform offers a complete product range to effectively diversify its portfolio. AvaTrade offers ultra responsive customer service with competitive pricing and very well designed online courses for beginners.
Established in 2006 under the name AvaFX, the platform specializes in trading:
- Raw material
The platform is available in Europe, Shanghai, Milan, Sydney, Tokyo, South Africa and Nigeria. It gives beginners the opportunity to use powerful platforms such as: MetaTrader 4, MetaTrader 5, AvaOptions or AvaTradeGo. So what are we waiting for to start our first trade?
Invest what you can lose
Online trading is a risky and volatile investment. Trading means you can lose or win. If you use leverage, you can win very quickly, but also lose very, very quickly. Overall, before investing, you should only bet on the money you can afford to lose.
Article written by Bertrand Dubourg – www.linkedin.com/in/bertrand-dubourg-934b691b6