Among the user comments, we were asked to make an explanation about how to invest in the right way.
It’s true, the user is always right and you should always do everything you can to please him. However, it is not always possible or, more precisely, it is not always plausible to do it fully.
In any case, we always try in any case. We do not have crystal balls, we do not know or propose methods “infallible” to make success in trading (otherwise we would not be here to talk about it), we do not promise anything. In the web, unfortunately, you are accustomed to always find a simple solution to everything with a small search on the engines or on Youtube, but unfortunately, the simple solutions to the big dilemmas do not exist.
What exists and can be done, however, is to follow a path based on your goals, needs, possibilities, time, resources, will and many other small factors that make up each of us.
With this article, we will try to accompany the user in a small path of reflection, proposing ways of approaching the trading in case you firmly want to start practicing with real money or just for fun with a virtual budget.
Do you really wish to trade? If so, why? Read more.
Oh, that’s a boring question. You’ll probably be tempted to scroll down to find a more intriguing paragraph perhaps titled “how to earn with trading safely” or, better yet, “how to make money the right away through trading“.
But no. Since we are much happier when our users really get more knowledge to make potential gains, we can’t help but start from the person, their goals and the psychological aspect.
Motivation. If there is, what feeds it?
Let’s resume the question: do you really wish to trade? You may want to start trading online for several reasons, but usually, you can divide it into a few broad categories:
- I want to earn fast
- I want to earn a living after studying how to do it.
- I want to use my forecasting skills in the financial market
- I’m not satisfied with my salary, so I want to round up
- I want to be a trader for work so that I have more time for my things
- I don’t know, but I like the idea
- I don’t know.
Now, considering that trading is risky and that if you don’t commit to studying it as you should you are destined to lose your money, are you still convinced to want to trade?
Luck comes and goes (you could be good once but then bad the next and maybe lose everything between these “ups and downs”) while constantly learning and updating remain and work better and better.
Maybe your idea is to trade for a while and then quit. But are you sure that you’ll feel good if you leave?
If after all these questions you are still convinced that you want to start, or at least want to “try”, then know that there is much to learn. Trading is not a scratch card, it’s not a lottery. The financial market is based on reality, so you need to understand it before you act. Or at least, not to be “invested” in the street.
Here: learn to invest so you don’t have to invest in trading. Mark it, put it in the picture, post it on the social, copy it, “steal”, do whatever you want. You will never have to forget this sentence.
The Right Approach to Trading
First of all, the best approach to “invest” in trading is to understand what trading is. You all know that you can trade CFDs and binary options, although the latter has actually been deactivated for basic accounts and maintained only for professional accounts.
CFD trading is what resembles traditional investment the most since the financial result is proportional to the number of increases and decreases recorded by the price from the time a position is opened.
Well, since we have talked about online trading and CFDs, we recommend these two free courses:
These courses are quite short and complete, so it is best to read them from the beginning and fill in any gaps. The CFD trading course is specific to learning how to use CFDs.
In this regard, it may be useful to read our article on what CFDs are about.
If you already have enough knowledge about online trading and CFDs, you can switch to a more specific course, such as the ones we will talk about below.
Learning how to use the trading platform
A trading platform is a tool that allows you to place orders in the market so it is essential to learn about every aspect, function, voice, and detail in order to be prepared in any situation. There are many “traders” who have been using a platform for years but who, for example, are not yet familiar with the trailing stop function, or who are not yet familiar with the dynamics of margins.
In addition, regardless of these concepts that are common to all platforms, there are specific elements, which refer to specific functions of the platform used. For example, the technical indicators present, any daily technical analysis, the services offered by the broker, etc..
If you have not yet chosen a trading platform, try one of the best trading platforms we have selected.
Studying a specific market
Each market is different from the others. Of course, there are correlations between some financial instruments related to different markets, but you must understand that trading on the stock market rather than on the Forex market is quite different. This is true, for example, in terms of both volatility and leverage applied by brokers.
In addition, the dynamics underlying the price changes of an asset in one market vary from those of another. For example, changes in Forex prices depend on macroeconomic variables (e.g. inflation, interest rates), while stocks also depend on microeconomic variables, such as the balance sheets of individual companies.
Instructions for trading on Forex
To trade on Forex, we can first recommend reading our specific sections such as:
- Forex trading guide: a compact guide that is simple and pleasant to read for those who want some first smattering
- Forex Course: about thirty individual lessons on the individual elements that make up Forex trading
How to Trade Stocks Online
The stock market is perhaps the most intriguing of all because it is the very essence of financial investment and the capitalist economy. Investing or trading in a company’s shares while predicting its stock market performance can become a real passion, as there are many elements that can influence the price of a stock on the Stock Exchange.
For this reason, we recommend some pages of our site such as:
- Stocks section: here you will find the link to the informative pages of numerous Stocks
Guide to trading on stock market indices
Stock market indices group different securities according to different logics. The most famous indices are those that group securities listed on the same stock exchange, such as the FTSE MIB of Piazza Affari, or the main index of the Stock Exchange that groups the Italian shares with the highest capitalization.
To approach trading on indices we recommend:
- Index section: here you will find the link to several information pages dedicated to the individual indices
Other instruments: ETFs, bonds, blends, cryptocurrencies, etc.
For each financial instrument, the site tradingmasters.io offers information about both the category and the specific instruments. Except for blends where there is only one blog article.
ETFs are particular investment funds whose units are traded like shares. On ETFs, you can trade with CFDs, as explained in the ETF section. We also present a simple guide to ETF trading.
Bonds are financial instruments that give their holders more economic rights than their shareholders. To trade bonds, you can trade with the Markets platform.
If you are interested in cryptocurrencies, you can get more information about trading on cryptocurrencies from our section dedicated to cryptocurrencies trading.
In a sea of information, the secrets to doing well
Reading requires patience, just as patience requires trading. There is no method to read and apply. Knowledge comes with application, practice and progressive knowledge of the subject.
To continue the path, you will need to study fundamental analysis (which you will find in the CFD course) and technical analysis, the fundamentals of which are explained both in the CFD course, in the Forex course, and in the online trading course.
We are working on the creation of free online lessons of more in-depth technical analysis and applications, as well as a great trading guide that will also include fundamental and technical analysis. The aim of this guide is to provide the reader with all the useful elements to approach trading, start with the right approach and improve, with the information needed to evaluate personally how, when, and where to invest in the right ways.
If you want to learn in a professional way how to trade online and start from scratch, we recommend what in our opinion is the best basic course in online trading for beginners or our CFD Course.