Online trading is more accessible than ever before, so it makes sense that people are seeking support to get started. From proper online trading education to choosing a broker and making your first trade, we’ve got you covered with five essential tools for getting started.
A Quality Broker
A broker is a gateway between your funds and the online markets and choosing a quality platform is essential. There is a wide range of online brokers out there, with some being more forgiving to beginners. The platform you choose needs to provide quality customer service, have no hidden fees, provide quality data, and have a reasonable commission rate. For those looking for online trading South Africa, we suggest using HFM.
There are lots of components to learn before diving into online trading, so make sure you do your homework. Learning the basics of trading will help you put together a starting strategy, and continuously learning will help you to improve your profits. You will find training materials everywhere including libraries, online education platforms, and searching the likes of Investopedia. Whether you learn visually, audibly, or kinaesthetically, there will be a training resource out there for you.
Analysis & Charting Software
Online trading involves huge amounts of data, and you need to track it all easily. Fortunately, you can use online charting software, which will analyse data and organise it for you. This technology has seen considerable evolution over recent years, with many platforms pulling on AI, which provides more concise data.
Many people get too excited about setting up their live accounts that they forget about the need for capital. The good news is that you don’t need the fortune to start a trade account, and as little as £5K will suffice for a solid portfolio. If you don’t have these funds readily available, try the following to raise them:
- Side hustle. Make a little extra cash on the wide – anything from Deliveroo to freelance writing will help you increase your earnings.
- Sell unwanted items. Have a look around your home for items you don’t use and make a profit from selling them – you’ll be surprised how quickly you make £5K.
- Direct sales. Simply put, sell items from the comfort of your home and make some cash on the side.
You will face many losses during your online trading journey, but that’s all part of the landscape. However, you can turn your failures into learning material, which is why you should keep a journal. Writing your shares by hand will help you to digest information and will lead to greater success. If you don’t believe us, try it for a month and see what the benefits are.
Trading can become a highly lucrative career, or it can make for an interesting side project. Understanding the tools available to you will help you to get more out of online trading. The areas discussed above make for a great starting point, so what are you waiting for?
By: Boris Dzhingarov