Trading online is all the rage now. It is especially appreciated because it has made trading accessible to every aspiring trader. Traders and brokers of yore had to make numerous phone calls to set up trades. Fortunately, that has changed in the wake of online trading.
Modern-day trading involves the use of online trading platforms with limited communication between trader and broker. You simply log into your account, place your trades and watch the action in real-time.
Who is Eligible to Trade Online?
As stated above, all aspiring traders can trade online. All you have to do is find an online trading platform, open an account and you are good to go. The platform charges you a flat fee per trade and even offers a free demo account for practice.
Many wannabe traders have trouble finding trading opportunities. Well, this article has you covered. The following trading opportunities are available for anyone that wants to invest.
1. Forex
If you are on several social media platforms, you have come across self-proclaimed expert forex traders. They have probably even reached out to you via direct messaging. That is how rapidly forex trading has grown as a preferred investment tool.
Despite its being a risky market, traders flock to it because it is the largest and most liquid trading instrument. It is a risky market to trade because currencies are sensitive to the slightest changes. Political upheavals, which are common, can make a currency drop overnight.
Forex trading requires a tremendous ability to control your emotions. The best thing is to start small. If you risk it all, you are setting yourself up for a meltdown should the market take a nosedive.
However, consider that importing and exporting are major activities in currency. Whenever people travel overseas, they must buy the host country’s currency to buy things or pay for services. This is an important factor that impacts the performance of currencies all over the world.
2. Trading Stock
This is another huge market and possibly the one most people are familiar with. It contains a plethora of buying and selling options that no trader may ever fully grasp. However, anyone can learn to trade stock and get good at it.
Still, as will all trading markets, it is a risky undertaking. Being able to reign in your emotions is a requirement. You must avoid emotional trading and learn to accept the thrills of trading as they are.
Stock trading allows you to employ various strategies such as:
3. Day Trading
It happens before the closing bell, usually 4:00 pm of certain exchanges. Some of the strategies employed in day trading include the following:
- Scalping
- Market Making
- Swing
- News Playing
- Price Action
- Momentum
- Pattern
4. Short-Term Trading
1 day to 3 weeks of trading is referred to as short-term trading.
5. Medium-Term Trading
Three weeks to a few months of trading is considered medium-term trading. A stop-loss order is imperative in medium-term trading to stem financial loss.
Read More: Forex Trading: Do’s and Don’ts During A Virus Pandemic
6. Long-Term Trading
This one involves holding stock for years with the hope that the company will remain profitable for as long as the stock is held. If you opt for long-term trading, you must choose your company carefully. Many investors go for stock from established companies such as Amazon.
7. Trading CFDs
This type of trading involves buying low and selling high. CFD trading options include currencies, indices, commodities and more. CFD trading allows you to trade without owning the underlying assets.
8. Cryptocurrencies
The crypto market offers several cryptocurrencies for trading. These include:
- Bitcoin
- Ethereum
- Litecoin
- Dash
Accomplished traders recommend short-term trading here because the future of cryptocurrencies is not clear. Trading cryptos is popular since regulatory agencies have yet to put rules to govern cryptocurrency trading.
This is double-edged because while there are rules, there is no protection either. The lack of monitoring means that knowledge about the market, as well as market conditions, is limited.
Conclusion
You can access a lot of trading opportunities especially via your trading platform. Aim to begin small until you have a grasp of trading activities. Most importantly, remember to reign in your emotions if your positions fail to move as you speculated.
