Most of us do not have the money to invest in the financial markets, and this is a very difficult thing to change.
However, if you are a smart person and want to learn how to make money trading online, then the perfect time has come. Here we are going to answer the most common questions that people like you ask before starting in this world.
Why do you start making money with trading?
The financial markets are as complex as trying to get your in-laws to like you (it can happen, some of them come naturally and others spend hundreds of dollars on their Christmas gifts), and investors can make or lose money very often.
Professional traders buy and sell stocks, such as stocks, shares, indices, futures, currencies and cryptocurrencies… with the aim of profiting from their price fluctuations. Traders use mathematical systems, tools, and patterns to calculate what the odds are for winning on a trade. And if you don’t let yourself be guided by those tools, or you do it wrong, you end up losing money.
The Setups
The setups are certain structures that create the prices that, together with some indicators, can indicate the direction that the market is going to take. These configurations allow us to create a trading plan as it guides us in the possible results. It is easy to apply because you just have to know the possible structures, and have a good eye to detect them. The problem with using these strategies is that you can easily fall for the tricks and manipulations of professional investors.
Buy assets
Another option to make money in trading is to do it by buying and selling shares.
- Short termThis way of operating consists of calculating the probability that an asset will rise or fall in value, and wait for a short period of time until it reaches the price that interests you to buy or sell it.
- Long-termStocks are part of your portfolio with the intention of waiting several years to start seeing an increase in value. This option is widely used to create retirement funds for many traders.
With all leverage comes great responsibility
Trading with this tool can significantly increase your profits, without having to invest a large sum of initial capital. Trading with financial leverage means trading with more money than the funds you have available. To carry out these transactions, the broker grants a temporary loan to the trader so that he can operate with a position greater than the amount of funds in his account.
And for this reason, leverage is a high-risk tool. Therefore, before you start trading you need to understand the concept of leverage. If you invest $500 and win $500, your leverage will be 1:1. If you now invest that $1,000 and win another $1,000, your leverage will be 2:1. And so on until you decide to stop or until the market makes you leave.
How to start a trading account
The first step to start making money with finance is to open an account with a NAGA broker. Most brokers offer you the possibility of having a demo account to do all the tests you need, without using real money. In the case of NAGA, you have $10,000 at your disposal to experiment.
The next thing you need to do is learn the fundamentals of the financial markets. This means acquiring knowledge about the different types of assets that exist, what the economic news means and how the prices of these assets behave.
You will also need to learn to identify market trends and learn some basic technical analysis tools to predict the future behavior of the market, and if you are part of the trader club you can receive additional information on all these resources.
What do you need to invest in the financial markets
The most important part is having money you don’t need. However, you will also need to know the scene and information about the raw materials you are buying. Once you start trading you will need a computer and a good internet connection.
At NAGA, the Broker that we recommend, you can see the trades that traders with a high level of profitability have made, and choose which trades of theirs you would like to copy under the limits that you set.
This is a way to learn while you invest and improve your profitability.