It’s official that the last twenty years have been good to those who wanted to try their chops at online investing. Gone are the times when Wall street alone could make or break markets. You no longer have to rely on the services of a stock broker, the “third rail”, who’d place orders on your behalf and collect commissions regardless, whether you make or lose money. Remember the timeless “Trading Places”? Well, forget it. Nowadays you are the only one to blame or praise for your balance sheet.
With that, though, comes a pretty steep learning curve but don’t worry, we make it official that we’ve got your back on becoming a successful online investor.
Since you’re here at ForexOfficials.com, we assume that you’re mostly interested in trading foreign exchange. Yet, the rule of supply and demand covers virtually all aspects of buying and selling at a profit, so know this: theoretically, a commodity gains or loses value when a certain amount of traders express a certain amount of confidence in that commodity’s position on the market. The reality is, however, different. To say about the market that it “moves in mysterious ways” would be an understatement of the century.
There are two ways of researching whatever you plan on trading. The fundamental analysis is an idea that everything you need to know about a commodity is in bank statements, earnings reports, balance sheets, press releases and financial news. Those, and plenty of other tools available from government organizations, regulators etc., are the instruments of fundamental analysis. Use them well. Technical analysis, however, is a bit more voodoo. A trader, by monitoring price fluctuation, patterns and indicators builds his theory on the direction of the market. Neither way is foolproof, so the best course of action for you is to combine the two.
Again, since you’re already here at ForexOfficials.com, we assume that you’ve done your homework selecting the trading service or a brokerage house to be your partner in your future endeavours. If not, do your homework, no slacking on this one! Such factors as costs, customer support (you need to know their level of personal approach), fees, mobile access, technical functions, abilities and capacities at e-commerce are going to make the difference between your future success or failure.
Practice makes perfect.
Here is a bit of knowledge that you should probably tattoo somewhere on the back of your clicking hand: play only with the amount of money you can afford to lose. Do not add to the principal amount of your initial investment, once you’ve seen your first gains. It very well may be the beginner’s luck. Instead, reinvest (if you must reinvest at all) only your profits. And bet small. Remember, you’re still learning!