eBook - ePub
AN EASY APPROACH TO ONLINE TRADING. How to become an online trader and learn the introductory information that are necessary to be successful in this market
- English
- ePUB (mobile friendly)
- Available on iOS & Android
eBook - ePub
AN EASY APPROACH TO ONLINE TRADING. How to become an online trader and learn the introductory information that are necessary to be successful in this market
About this book
Are you interested in Trading, but you do not know how to start? Would you like to become a professional investor and know how financial markets work? Do you want to create an alternative activity without working hours, no bosses or managers who oversee you? If so, Online trading is the solution you were looking for! Yet, be careful, because we are talking about a hard task which is not suitable for everybody. Nevertheless, this guide can hold your hand and introduce you to the world of the stock market by explaining all the trading foundations: from operating strategies to markets where you can invest your money; from order types to the definition of a portfolio and the brokers' choice; from the stock market investigations to the Money Management and Risk Management concepts.
All this information can be found in this guide in a simple, practical and affordable way, and will allow you to learn quickly all the starting skills. Stop wasting your time and discover immediately whether Online Trading is suitable for you.
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Yes, you can access AN EASY APPROACH TO ONLINE TRADING. How to become an online trader and learn the introductory information that are necessary to be successful in this market by Stefano Calicchio in PDF and/or ePUB format, as well as other popular books in Negocios y empresa & Negocios en general. We have over one million books available in our catalogue for you to explore.
Information
Topic
Negocios y empresaSubtopic
Negocios en generalTable of contents
- Preface
- Introduction
- This Unknown Trader
- The Advantages of Online Trading
- The Disadvantages of Online Trading
- The Peculiarities of Online Trading
- Online Trading Different Tactics
- Trading Position
- Day Trading
- Scalping
- Trends and Positions
- Stocks and Shares
- Bonds
- ETFs
- Derivatives
- The Forex Market
- Capitalization and Leverage
- Broker's Characteristics
- Types of orders
- How portfolios work
- The Fundamental Analysis
- The Technical Analysis
- The Money Management
- Last Suggestions
- Conclusion
- Self-evaluation Test
- Keys
Preface
This manual was written by taking into account the great paradox that characterizes trading operations since the online financial intermediation was created.
The contents of this guide stand out the simple and free features that every individual can achieve when executing a market order in real time and thanks to all the trading platforms that can be found on the Internet.
Furthermore, by examining these issues, many complications and high entropy factors can appear in the dynamic and changing trading world every day.
Simplifying the basics of trading without being predictable has been a great challenge that we had to face during the writing process of this guide. Many more references about this subject will be often available because they represent one of the best strategies that keep alive all the concepts without interrupting the main information flow.
As a reader, you are simply asked to consider these guide assumptions and the subsequent knowledge you will be able to achieve in the following pages.
The contents of this guide stand out the simple and free features that every individual can achieve when executing a market order in real time and thanks to all the trading platforms that can be found on the Internet.
Furthermore, by examining these issues, many complications and high entropy factors can appear in the dynamic and changing trading world every day.
Simplifying the basics of trading without being predictable has been a great challenge that we had to face during the writing process of this guide. Many more references about this subject will be often available because they represent one of the best strategies that keep alive all the concepts without interrupting the main information flow.
As a reader, you are simply asked to consider these guide assumptions and the subsequent knowledge you will be able to achieve in the following pages.
Introduction
“When the answer is simple,
God is answering”
Albert Einstein
Online trading has experienced an extraordinary growth in recent years. A gradual disintermediation of traditional jobs and trades, which occurred in Western countries since the early years of the new century, has coincided with a growing financialization of production sectors, raw materials, and consumer goods.
It may seem paradoxical, but today you can find financial derivatives whose underlying asset can be surprising, such as the climate or the weather forecasts: this mathematical model was developed by Norwegian Professor Fred Espen Benth, who opened the way for the listing of derivatives in the Chicago Exchange by using one of the above-mentioned assets.
This continuous process of evolution has transformed online trading into a crucial element for large institutions as well as for small investors, because financial markets have never been so fluid and varied as they are nowadays, thanks to new products and services.
Afterwards, globalization did the rest: everyone could begin to engage in an activity that until recent times was only a prerogative of institutional investors. Now, for example, it is possible to operate in the financial derivatives market with a broker who lives or works in another continent and uploads real-time information on websites and forums in any language all over the world.
These trends are confirmed by data derived from researches conducted by brokers with respect to their own market like the KMPMG in 2010. According to that, online traders in a country like Italy, for example, are more than 500,000 and most of them can execute 200 transactions approximately per month. This scenario, which is already enough to understand the extent of this phenomenon, does not include all the other countries of the World.
Now the evolution of financial markets and the economic growth are two concepts profoundly different and they have stopped being seen as one; this factor justifies and promotes the opportunity to work as an online trader or investor, as it can also be combined with a traditional job.
The best way to start is to understand both the basics of this profession and the most effective strategies and trading procedures. In this sense, the Einstein sentence about simplicity, which we quoted at the beginning of this chapter, is nothing but the thread that we have tried to follow throughout this guide so that the reader can learn and understand all suggestions and tools here enclosed and achieve the desired success in this field.
God is answering”
Albert Einstein
Online trading has experienced an extraordinary growth in recent years. A gradual disintermediation of traditional jobs and trades, which occurred in Western countries since the early years of the new century, has coincided with a growing financialization of production sectors, raw materials, and consumer goods.
It may seem paradoxical, but today you can find financial derivatives whose underlying asset can be surprising, such as the climate or the weather forecasts: this mathematical model was developed by Norwegian Professor Fred Espen Benth, who opened the way for the listing of derivatives in the Chicago Exchange by using one of the above-mentioned assets.
This continuous process of evolution has transformed online trading into a crucial element for large institutions as well as for small investors, because financial markets have never been so fluid and varied as they are nowadays, thanks to new products and services.
Afterwards, globalization did the rest: everyone could begin to engage in an activity that until recent times was only a prerogative of institutional investors. Now, for example, it is possible to operate in the financial derivatives market with a broker who lives or works in another continent and uploads real-time information on websites and forums in any language all over the world.
These trends are confirmed by data derived from researches conducted by brokers with respect to their own market like the KMPMG in 2010. According to that, online traders in a country like Italy, for example, are more than 500,000 and most of them can execute 200 transactions approximately per month. This scenario, which is already enough to understand the extent of this phenomenon, does not include all the other countries of the World.
Now the evolution of financial markets and the economic growth are two concepts profoundly different and they have stopped being seen as one; this factor justifies and promotes the opportunity to work as an online trader or investor, as it can also be combined with a traditional job.
The best way to start is to understand both the basics of this profession and the most effective strategies and trading procedures. In this sense, the Einstein sentence about simplicity, which we quoted at the beginning of this chapter, is nothing but the thread that we have tried to follow throughout this guide so that the reader can learn and understand all suggestions and tools here enclosed and achieve the desired success in this field.
This Unknown Trader
The figure of an online trader has to be the starting point of a book whose aim is to introduce to online trading; this is why it deserves a particular attention. Many of us identify investors with American movie characters like the ruthless financial trader Gordon Gekko.
The fictionalized idea can lead us to think that a successful trader usually occupies a position of responsibility and manages large hedge funds or international institutions operations. Although these stereotypes really exist, they are not certainly a good representation of small and medium part-time traders who manage to be successful by engaging in this activity.
Conversely, we can say that most of them do not usually devote all their time to that. This occurs because they have learned to organize their trading strategies and manage their capital in order to operate in the market without spending 24 hours a day in front of a computer.
However, it is generally true that a trader must possess specific characteristics if he wants to carry out this activity successfully. In practice, this means that he must know all the rules of the game to increase his chances and beat the market, which are the following:
• The Economic Capital
• The Psychological Capital
Let's analyze the first one: it is not possible to define an ideal economic capital in this sector, because a minimum required capital depends on the type of operations and financial instruments with which you wish to operate. Even small traders can start their activity by investing between 5,000€ and 10,000€, because less capital could lead them to use an excessive leverage or risk a large part of this investment.
We will see later why this assumption is very important and what Money Management strategies can be used to solve these issues.
Even those who wish to start trading immediately, in spite of the fact that they do not still have sufficient financial resources, can spend this time by studying the market and using many virtual accounts that brokers offer online nowadays.
To beat the market, the second element that a trader must have is the psychological capital, that is to say, a set of beliefs, attitudes and mindsets that can facilitate a gradual and correct trading development.
In particular, a successful trader must have an adequate experience and knowledge as a result of many hours of market researches. Discipline, patience and the ability to cons...
The fictionalized idea can lead us to think that a successful trader usually occupies a position of responsibility and manages large hedge funds or international institutions operations. Although these stereotypes really exist, they are not certainly a good representation of small and medium part-time traders who manage to be successful by engaging in this activity.
Conversely, we can say that most of them do not usually devote all their time to that. This occurs because they have learned to organize their trading strategies and manage their capital in order to operate in the market without spending 24 hours a day in front of a computer.
However, it is generally true that a trader must possess specific characteristics if he wants to carry out this activity successfully. In practice, this means that he must know all the rules of the game to increase his chances and beat the market, which are the following:
• The Economic Capital
• The Psychological Capital
Let's analyze the first one: it is not possible to define an ideal economic capital in this sector, because a minimum required capital depends on the type of operations and financial instruments with which you wish to operate. Even small traders can start their activity by investing between 5,000€ and 10,000€, because less capital could lead them to use an excessive leverage or risk a large part of this investment.
We will see later why this assumption is very important and what Money Management strategies can be used to solve these issues.
Even those who wish to start trading immediately, in spite of the fact that they do not still have sufficient financial resources, can spend this time by studying the market and using many virtual accounts that brokers offer online nowadays.
To beat the market, the second element that a trader must have is the psychological capital, that is to say, a set of beliefs, attitudes and mindsets that can facilitate a gradual and correct trading development.
In particular, a successful trader must have an adequate experience and knowledge as a result of many hours of market researches. Discipline, patience and the ability to cons...
Table of contents
- Cover
- AN EASY APPROACH TO ONLINE TRADING
- Table of contents
- Preface
- Introduction
- This Unknown Trader
- The Advantages of Online Trading
- The Disadvantages of Online Trading
- The Peculiarities of Online Trading
- Online Trading Different Tactics
- Trading Position
- Day Trading
- Scalping
- Trends and Positions
- Stocks and Shares
- Bonds
- ETFs
- Derivatives
- The Forex Market
- Capitalization and Leverage
- Broker's Characteristics
- Types of orders
- How portfolios work
- The Fundamental Analysis
- The Technical Analysis
- The Money Management
- Last Suggestions
- Conclusion
- Self-evaluation Test
- Keys