Are bank investments truly profitable?
Most of the time when we wish to invest money, we naturally turn to our bank and seek professional advice from them on a profitable placement. But are our banks truly the best placed advisors to help us to really find the most profitable investment available?
Clearly there are certain advantages by passing through a bank for making investments, notably that of having a professional manage your capital in one single place, and thereby profit from certain sometimes more secure placements such as ISAs or life insurance. But of course, these investments are not always as profitable as we would like and the profits obtained, when they are guaranteed, do not generally inspire enthusiasm. It is of course possible to make a little more by trying placements that are less secure, but the risk of losing everything is still too high compared to the profit possibilities in these cases.
Online investment is what makes the most money:
To summarise, online investment is nowadays undoubtedly the method that generally makes the most profits. But what exactly is ‘online investment’? It can basically be described as speculating directly on the financial and stock markets through a trading platform by speculating on the rise or fall in the price of an asset such as shares, commodities or even currency exchange rates.
If this all seems very complicated and you know nothing about the world of finance, please take heart! Nowadays it is very simple to make profits with this trading method, using either CFDs otherwise known as Contracts for the Difference.
And to further increase your chances of making your money grow, the online brokers that place these platforms at your disposal will help you take your first steps and offer you valuable information to speculate correctly and thereby increase your profitability ratio. Certain of these brokers, such as eToro, even offer you the opportunity to simply copy the transactions of the best traders on their platform.
Which shares should you invest on to get the most profit from trading?
Now that you know the best way to invest in the stock markets, you just have to choose the most profitable shares for your investments. It should be noticed that this choice will also depend on your investment goals since you will not choose the same shares for a short-term investment as for a medium or long term investment. The choice of shares will also depend on the means with which you will invest and the leverage you that you intend to use to do so.
For this, we recommend you the following shares and assets groups:
- The most volatile shares such as stock indices, raw materials and precious metals which offer faster and more significant changes but also more risky ones.
- News sensitive assets: the fundamental analysis of important economic and financial events will help you target the assets that are more susceptible to move up or down. Increase or decrese
- Stock market shares: They represent attractive assets for long term strategies. It is however better to target the shares for which you have a maximum of information in order to anticipate its changes better.
In order to put in place more efficient strategies, you can also use the elements available on different trading platforms which will help you find good opportunities such as trading signals, the analysis of the markets and technical analysis.
Before investing in any asset, it is also recommended to carry out a full analysis of its possibilities by using the fundamental and the technical analysis. Thanks to this complete strategy, you will have more chances to take positions that follow the trend.
Limit your risks and invest online:
I you want to invest with low risk of losses, the ideal is to trade online using a trading platform with an authorized broker. You will have access to a very popular trading tool CDFs, CDFs brokers.
If you opt for the CFDs, be aware that when taking your position, you can determine the level of risk that you are willing to take by indicating the price below or above when you think you have lost too much. Your position will be then automatically closed at this price.
Some tips to trade without risk:
Using an automatic trading system, can be an excellent way to limit the risk of loss when trading online even though this does not guarantee you zero risk. For this all you need to do is to open an online trading account and opt for this feature.
With enough knowledge about stock markets, you will be able to protect your capital against common mistakes that you could make when trading on your own. This method can be applied manually or automatically, which means that once you have chosen the trading robot that will trade for you, your positions will be taken without you having to intervene and proportionally to the amount of your capital.
Even though it is not possible to invest on the stock market without taking risks, it is possible to reduce your losses easily.
Train to invest in the stock market without risk:
Another effective way to invest in the stock market without risk is to use a free demo account like those offered by online brokers. Those accounts allow you to trade with fictitious money but in real market conditions.
You can therefore develop effective strategies without risking your capital until you are sure of yourself and decide to trade with a real account and with your capital because the demo account does not really allow you to gain any money.
Not all the trading platforms offer demo accounts. However, most of the platforms that we have recommend on this site are serious platforms that offer you this possibility so that you can train the best possible as a stock market investor and become an efficient trader and prospect yourself from any risk.
In parallel, we advise you to follow the training modules offered by those brokers in order to learn the basics about investment and about technical and fundamental analysis. You will also be able to test your new knowledge on the demo account that you are using.