The popularity of online trading boomed in the mid 90s, when internet speeds began to get faster. With the advent of online banking in around 1983, the stage had already been set for the integration of private individuals’ bank accounts with online trading platforms. Nowadays, trading online is a fantastic way to boost your personal finances, and once you get into the swing of it you can find yourself making substantial monthly deposits into your bank account as your successful trades pay off.
Can trading online replace my income from my job?
Due to the potential for markets to be unpredictable, it is not a good idea for trading online to become your main source of income, particularly when you are just learning to trade. Some weeks you could make hundreds of pounds in a few hours, whilst in others you could make nothing at all. Nevertheless, the guide below will provide some advice for managing the risk inherent in markets to help your trades to be as successful as possible.
Different types of trading platform
There are numerous trading platforms out there, and it’s a good idea to compare a few of the best ones to decide which is right for you. A good platform will offer market analysis and in depth predictions for the market alongside trading software. The easiest platform for beginners to use is one that uses ‘binary options’ trading software (CMC Markets is a prime example of this). Binary options software will analyse the assets that you want to trade and offer you two options: ‘call’ (make a trade) or ‘put’ (leave the trade for the time being). Good binary options software will also indicate which option is best for you to choose, and great binary options software can be automated to make those trades for you whilst you get on with other things. Additionally, some sites will offer you the opportunity to trade in a safe, simulated environment where no real money is exchanged. This ‘virtual reality’ trading tool can be thought of as a way for traders to hone their skills, just as a flight simulator trains the pilots of the future.
Commodities that anyone can trade online
Newbie traders are often surprised at the high powered commodities that they can claim ownership of and trade online. Oil, metals, natural gas and crypto-currencies (i.e. digital currencies such as Bitcoin and Ethereum) are all popular commodities to trade online in the present day. A single Bitcoin is currently valued at between £1900 and £2000, for example. Many new traders like to find a commodity that they are passionate about (a chocoholic might like to trade in cocoa, one of the most commonly traded agricultural commodities, for instance!), as this makes trading more engaging.
Explore apps for streamlined trading
Many of the best online trading platforms have accompanying apps which enable you to receive real time alerts on the status of the market, to make deposits and withdrawals to and from your bank account, and to make trades at the touch of a button. Downloading an app to your smartphone can really make online trading much more streamlined and efficient, so when you are choosing a trading platform to work with it is a very good idea to ascertain whether or not they offer an app.
Need to supplement your income? Give trading a go
Trading online can be exhilarating, efficient, very interesting, and lucrative too. It is recommended that rookie traders spend some time reading up on the principles of trading (many good trading platforms will provide ‘How To’ guides for this very purpose) before they take the plunge. Binary options software and online market analysis have made trading easier and less time consuming than ever before. If you are seeking a convenient way to add to your monthly earnings, this could well be the solution that you have been looking for. Shop around to find the best trading platform for you, practice on a ‘simulator’ if you need to gain confidence, select your commodities wisely, and away you go.
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