Trading as a career has long been reserved for finance professionals as have the financial markets.
However, nowadays, trading has become more democratic notably due to the development of online trading platforms that enable any individual that wishes to do so to invest directly in the stock markets.
So, how can you become an online trader? This is what we shall look at in detail in this article!
What is an online trader?
The term, an ‘online trader’, nowadays designates a person who speculates in stock market and other financial assets using an internet trading platform. These platforms are essentially software interfaces available through specialised online brokers.
These brokers may be Forex brokers who enable you to speculate on currencies or other assets using CFDs, or they may be binary options brokers, ideal for beginners, offering access to a very wide range of assets.
To summarise, you too can become an online trader, through a simple registration and initial cash deposit that will enable you to make profits rapidly.
The qualities necessary to become an online trader:
To become an online trader and generate sufficient income to enable you to live off this activity, you will need to possess certain qualities and characteristics, here are the major ones:
- Know how to be patient: The real opportunities to make lots of money do not come along every day and it is necessary to wait for the right time to maximise your chances of making a profitable income.
- Be curious: You will certainly be able to increase your income if you are a curious person, notably concerning the markets and the assets that you decide to trade in and the data that will enable you to implement your strategies, such as technical analysis and reading stock market charts.
- Have the time necessary: Although it is clear that you can make money from trading as a simple part time activity, you cannot live off your trading activities by only devoting a few minutes to it occasionally.
- Have an excellent level of English as trading is carried out on the international markets and English is the language generally used on the markets.
- Finally, a trader should have strong anticipatory capabilities and be able to react rapidly on the markets in order to profit from opportunities when the moment calls for it.
How to proceed to rapidly become an online trader?
If you think you have the qualities and skills necessary, even if you have no trading experience, you can become an online trader rapidly. We recommend that you initially dedicate your activities to binary options and trade only on certain particular assets such as commodities.
Another ideal solution for beginners is to join a platform specialised in social trading on the Forex such as eToro whereby you can follow and copy the best traders online. In this way you can immediately start to make profits and still take the time to study their strategies.
Training to become an online trader:
If you do not know anything about the world of finance and stock markets but still want to become an online trader, you should know that the brokers trading platforms Forex offer training that is available to investors of all levels and free for the most part. These courses include:
- Written courses covering all the basics of online trading, as well as explanations of the different assets, the technical terms of the financial market and other useful information.
- Explanatory videos covering topics as broad as technical and fundamental analysis, using a trading platform with the passage of orders and the use of tools or the most effective strategies to speculate online.
- Interactive Webinars: Real online courses, webinars can take different forms and allow you to learn to trade like a professional through explanations provided by experienced investors.
- Seminars are also organized throughout France for the clients of these platforms.
In addition to these free courses and resources, it is possible, to benefit from customized training adapted to your needs with a personal follow-up by a professional, if you open a premium, VIP or payed account. But we strongly advise you not to start investing without having completed these trainings.
You can also start testing your theoretical knowledge in real-world market conditions by opening a free, unlimited demo account. This account allows you to test different strategies without any risk to your capital, until you are sure of yourself and informed enough to trade effectively online. This type of account is indeed offered by many stock market trading platforms on the internet.
Become an online trader by speculating in stock market shares:
Among the assets that you can trade online using the trading platforms available on the websites of internet brokers you can find stock market shares which are the most popular trading assets. Using these platforms you will actually be able to access the assets available through various stock markets worldwide such as the Euronext market as well as American and Asian markets. The most common shares that can be found online are often those that comprise the great international stock market indices such as the FTSE 100 or the Dow Jones.
To become a successful online trader you will need to master major technical analysis indicators and fundamental analysis specific to companies and their financial health. It is possible to buy then sell the shares on the stock market at a later date using a classic investment account in order to receive dividends and benefit from the buy/sell difference at the resale, but it is also possible to use CFD contracts to speculate on the rise or fall in the price of these shares without the need to purchase them outright.
The necessary attributes to become a good share trader online are as follows:
- Firstly, you should continuously follow the economical and stock market events, keeping up to date with all major announcements and publications relating to the companies, activities and sectors that you are trading in.
- It is also necessary to understand how other investors will react to these announcements by anticipating their effects and thereby opening and closing your positions strategically.
- Finally it is important that you take the time to carefully choose a reputable broker that should be highly secure and approved by the relevant European or international authorities, this broker should offer you a range of analytical tools and sufficient training.
Become an online trader on the foreign exchange market or Forex:
Another way to become a successful online trader is to invest in the foreign exchange market, or Forex, which basically consists of speculating on the movement of currency exchange rates. This is undoubtedly one of the most popular online trading markets worldwide given that the exchange rates display a very high volatility.
Also, Forex trading enables the use of clear and strategic strategies based particularly on the interest rates or the economic calendar.
Trading in foreign exchange rates also requires certain attributes as a trader, one of these being a skill in technical analysis as this type of analysis is undoubtedly the most suitable and effective way to follow the movements of these rates. Of course, this does not mean you should neglect the economical and financial events information which also have an impact on the exchange rates of currencies among themselves. Finally, it is highly recommended to understand and master the most effective trading strategies such as Scalping and Day Trading.
The choice of currency pairs that you will trade in is also very important. When beginning to trade online it is generally best to favour popular currency pairs that are easy to analyse such as the EUR/USD for example, more unusual pairs are best reserved for more experienced online traders.
Become an online trader on other types of assets:
The stock market shares and currencies are not the only assets that you can trade in if you become an online trader. In fact, the online trading platforms have substantially developed their range of assets available for trading over the last few years and now you can invest easily online in the following assets:
- The commodities markets that include precious metals such as gold, nickel, silver, and copper, fuel commodities such as oil and natural gas and the agricultural commodities such as rice, coffee and sugar.
- The international stock market indices that are also accessible online as well as the shares that they include.
- The treasury or state bonds such as the Bund or American treasury bonds are also highly popular assets that are particularly appreciated for their volatility and clear indicators.
- The crypto currencies are undoubtedly the most recent assets that have become available to trade online and which are currently experiencing great success among investors worldwide.
As you can perceive, the assets available for online traders are extremely diversified and you can invest on all these markets using a single trading platform although it is of course highly recommended that you concentrate on the markets you know best and follow a training course before taking any position.