In the potential gold-mine/mine-field of online trading, there’s plenty to be earned and lost. The most successful traders can make a healthy living from their investments, and whilst their tactics might be a guarded secret, we’ve a few suggestions for how to trade successfully online…
1: Consider building a portfolio
An “all or nothing” approach to trading will either end in triumph or tears. Investing in multiple products, and therefore building a portfolio, can be an interesting lower-risk means of seeing a return. You can choose from thousands of items, including businesses and goods, constructing a bespoke portfolio of options. You can also mimic the portfolios of other traders, or ask a specialist to manage your portfolio for you.
2: Learn through online courses
Successful traders understand how the markets work. This isn’t done through osmosis, they learn about trading, how the markets function and where to spot opportunities. Online courses are sometimes free (or charged at a reasonable rate) and can help train you in online trading. You’ll find courses to suit all levels and styles of trading, for total newbies to experienced traders. These courses can be completed from the comfort of your home using a webcam, using support materials (such as e-books) or sometimes from visiting staff for 1 on 1 (or small group) sessions.
3: Stay vigilant, receive notifications
Trade prices can fluctuate over night. Look at what happened to the British Pound after Brexit was announced. Keeping an eye on the markets, news, trading trends and what other traders are saying, is one way to keep ahead of the game. You can also set up notifications for when a product reaches a particular price, so you can buy and sell at a moment’s notice.
4: Set your trading limits and auto-limits
Know your limits. Risking more than you can afford is a dangerous game to play, and it’s usually unwise to invest everything in a single trade, even if it seems like a sure thing. To help avoid substantial losses, and to capitalise on high selling prices, some online trading services allow you to set auto-limits. With these, the system will sell up on your behalf before prices fall any lower. It’s all about risk limitation versus potential payoff.
5: Watch the masters
It’s rare to be brilliant at something when you first start. Would you try to play the piano in a concert, without first learning how to play it? No. The same might be said about trading. Watch the experts, learn from them, and if necessary mimic them. Understanding why an investment was made, when it was sold and other decisions may help you to avoid vital errors when you trade. The masters are great for a reason.
To conclude: we advise spreading your risk and learning as much as you can about trading. It may greatly improve your chances of success (profit!).