Trading used to be reserved just for the elites, as you needed a broker to make trades. Nonetheless, today it is available to everyone, and you can trade many different asset classes. All that you need is some capital, a computer, a strategy and an internet connection and you’re good to go.
In fact there are a plethora of stories out there where people have made millions from trading at home. And now with crypto becoming more mainstream, access to trading is the easiest it has ever been.
Implementing a strategy is not rocket science either. Online, there are tons of tutorials on technical analysis as well as ideas for fundamental analysis. One trader used to buy or sell assets purely on Donald Trump’s tweets, whilst others trade Dogecoin on Elon Musk’s tweets. Therefore, the information is out there, especially with social media.
Who can forget the Wall Street Bets crowd on Reddit going up against hedge funds in the GameStop trade? One Redditor figured out that the stock was overshorted to the degree of 108%. This led to a short squeeze as funds had to buy the stock to cover their short position. But, the demand to buy far outweighed the supply resulting in a massive price spike.
There are opportunities like this everywhere in the market as long as you do the homework. As often greed is everywhere, even the big boys make mistakes. Having a basic understanding of statistics and odds is a good place to start. Market trading is just like betting on sports, ultimately predicting the future.
One style of odds to look out for is Malaysian Odds. It is a great way to see how your stake and the payout correspond. This is ideal in sports betting to weigh up the risk/reward ratio. Fortunately, comparison sites help with a full definition with examples to help you apply this strategy. In sports, you can even claim a generous bonus to get started.
The most important place to start is picking a strategy and sticking to it. Do not let emotions get in the way. For example, if the price crosses the 200-day moving average, a buy order is placed. Or vice versa. Many retail traders now trade crypto because of how easy it is to get started. Many start with Bitcoin or Ethereum, but what is the difference?
Bitcoin is the number 1 cryptocurrency used for financial transactions. Whereas Ethereum is the world’s leading smart contracts platform. Both have seen mesmerizing rises in the past decade.
To help you get started, there is even free charting software like TradingView. If you are a math whizz, you can analyze past price changes and make future predictions. But always remember past results are not an indication of future returns.
There are a few skills you need to succeed in online trading. Firstly patience, when you have entered a trade, have an exit plan and stick to it. Do not let emotions get the better of you and sell right away at a loss. Secondly, you need to read a lot about your chosen asset class and stay up to date. Essentially you need to predict tomorrow’s newspapers to make big money.
As markets are 24/5 and crypto ones are 24/7, it is no easy task. Nevertheless, if you get it right, you will reap the rewards. A lot of research is needed, and finding the best crypto resources is paramount if you are to make cash. Then again, you may decide to trade forex, stocks, options, or even futures. For this, the best place to start is YouTube and Twitter, and follow the experts.
Trading online has the potential to be a gold mine, but many have been stung over the years. It is best to have your own ideas and strategies rather than blindly following others. This way, even if you lose money, you will learn and hone your skills. As when you start trading, you will make many trades, and the goal is to minimize losses and maximize returns.
Disclaimer: when you trade online you can lose all your initial capital and even more. So always be vigilant, read the terms and conditions on the site, and do your own research.