The Internet and new digital technologies have opened the door to the popularization of trading. We can now buy or sell financial instruments with a single ‘click’. But what elements and tools should we have in place to be able to efficiently enter the world of trading?
In this article, we will explain what the
essential tools to start trading online
- Training and knowledge: this is fundamental, appropriate training and knowledge is necessary.
- initial capital: not more than you can afford to lose but a not insignificant amount.
- To personal computer: to enable you to easily trade online from wherever you are.
- high-speed internet: don’t let your trades be interrupted by connection issues.
- What if the power goes out? : have a backup power plan like SAE for critical moments.
- Hire the services of a broker : bear in mind services may be charged in commissions.
1. TRAINING AND KNOWLEDGE
Trading must always be entered into with the appropriate knowledge and training. And it is not a short or easy path. Becoming a profitable trader takes a period of 6 to 9 months, sometimes more. The path requires time and effort.
2. INITIAL CAPITAL
You should always use additional capital that you do not need for basic necessity payments. A suitable amount would be around 5,000 euros and if you have more, the better – of course!
And most importantly: when you enter the markets don’t think about how much money you are going to earn but how much you are willing to lose. This allows you to control risks and generate profit. Money is the trader’s main tool: just as for a surgeon it’s a scalpel and for a carpenter it’s wood
3. TO PERSONAL COMPUTER
Today any computer that costs from around €800 has the necessary power to carry out our trading work. And if it is portable or a laptop, it allows freedom of movement. Remember Trading can be done in Central Park in New York or on the beaches of French Polynesia. Oh anywhere!
And remember: the computer should be used mainly for trading operations. Downloading from the Internet, or adding loads of other programs, could fill the device with viruses or slow performance down.
4. HIGH SPEED INTERNET
You have to have the fastest connection you can get. And above all, always use cable Internet; Wi-Fi operation is not advisable because of reliability.
5. WHAT IF THE POWER GOES OUT?
In the event that you do not use a laptop, you can use an Energy Almentation System (SAE): a device that allows you to have extra power for a period of time. If the power goes out, you can still be active and protect your positions.
6. HIRE THE SERVICES OF A BROKER
Bear in mind that a broker does not work for free. Services are charged in the form of commissions, which is why it is so important to choose one well. The broker is our intermediary; without one we can neither enter nor leave the markets. The advantage of an online broker is that commissions are generally lower than those of companies.
The broker that you choose should:
- Speak your language.
- Be personally contactable.
- Communication by email, telephone, or Skype should be easy.
Trading is not for everyone. It is a risk. It is rewarding. You must be prepared for the unpredictable, and for that the best thing to do is to study with the best trading teachers. Stock Market and Trading for Dummies](https://canaltrader.com/learn-trading-online)