How to become an online trader?

Do you want to embark yourself on the stock market and on stock market speculation? Find out everything you need to know about this type of investment.

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How to become an online trader?

Become an online trader by speculating in stock market shares:

Among the assets that you can trade online using the trading platforms available on the websites of internet brokers you can find stock market shares which are the most popular trading assets. Using these platforms you will actually be able to access the assets available through various stock markets worldwide such as the Euronext market as well as American and Asian markets. The most common shares that can be found online are often those that comprise the great international stock market indices such as the FTSE 100 or the Dow Jones.

To become a successful online trader you will need to master major technical analysis indicators and fundamental analysis specific to companies and their financial health. It is possible to buy then sell the shares on the stock market at a later date using a classic investment account in order to receive dividends and benefit from the buy/sell difference at the resale, but it is also possible to use CFD contracts to speculate on the rise or fall in the price of these shares without the need to purchase them outright.

The necessary attributes to become a good share trader online are as follows:

  • Firstly, you should continuously follow the economical and stock market events, keeping up to date with all major announcements and publications relating to the companies, activities and sectors that you are trading in. 
  • It is also necessary to understand how other investors will react to these announcements by anticipating their effects and thereby opening and closing your positions strategically.
  • Finally it is important that you take the time to carefully choose a reputable broker that should be highly secure and approved by the relevant European or international authorities, this broker should offer you a range of analytical tools and sufficient training.

 

Become an online trader on the foreign exchange market or Forex:

Another way to become a successful online trader is to invest in the foreign exchange market, or Forex, which basically consists of speculating on the movement of currency exchange rates. This is undoubtedly one of the most popular online trading markets worldwide given that the exchange rates display a very high volatility.    

Also, Forex trading enables the use of clear and strategic strategies based particularly on the interest rates or the economic calendar.

Trading in foreign exchange rates also requires certain attributes as a trader, one of these being a skill in technical analysis as this type of analysis is undoubtedly the most suitable and effective way to follow the movements of these rates. Of course, this does not mean you should neglect the economical and financial events information which also have an impact on the exchange rates of currencies among themselves. Finally, it is highly recommended to understand and master the most effective trading strategies such as Scalping and Day Trading.

The choice of currency pairs that you will trade in is also very important.

This will allow you to target the most popular currency pairs for which a lot of information is available, such as EUR/USD for example, with the most exotic pairs being reserved for the most seasoned online traders.

 

Become an online trader on other types of assets:

The stock market shares and currencies are not the only assets that you can trade in if you become an online trader. In fact, the online trading platforms have substantially developed their range of assets available for trading over the last few years and now you can invest easily online in the following assets:

  • The commodities markets that include precious metals such as gold, nickel, silver, and copper, fuel commodities such as oil and natural gas and the agricultural commodities such as rice, coffee and sugar.
  • The international stock market indices that are also accessible online as well as the shares that they include.
  • The treasury or state bonds such as the Bund or American treasury bonds are also highly popular assets that are particularly appreciated for their volatility and clear indicators.
  • The crypto currencies are undoubtedly the most recent assets that have become available to trade online and which are currently experiencing great success among investors worldwide.  

As you can perceive, the assets available for online traders are extremely diversified and you can invest on all these markets using a single trading platform although it is of course highly recommended that you concentrate on the markets you know best and follow a training course before taking any position.