How to Start with Online Trading?
Plenty of you have heard about online trading and the possible advantages of using online trading to increase your income. And, chances are, you are wondering how to get into online trading and make a successful journey out of it.
This is a modern, fast-paced world and online trading fits perfectly with the lifestyle of the 21st century. This article will, therefore, explore how to get into online trading and provide some useful advice on the matter to further assist with the trading process.
Table of contents
While for some, more traditionally-inclined people this might be off-putting, there are millions around the globe who have tapped into into the enormous earning potential online trading holds.
1. Bitcoin Trading
Bitcoin Trading vs Bitcoin Investing – The Difference
Bitcoin Trading is different than Bitcoin Investing and we hope that you will understand more about this subject after reading our article.
If you invest in Bitcoin, in most cases it means that you are buying Bitcoin with the idea to keep it for the long term. You probably believe that the price will continuously rise even thou there will be some ups and downs during that time.
Reasons why people get into Bitcoin are different. Some of you are in it just to make profits, some believe in the cryptocurrencies, team behind it or you just heard about the guy that made a lot of money with Bitcoin.
Bitcoin Trading is a term that is used for buying and selling Bitcoin in short term. This action is usually made whenever you think a profit can be made. Traders see Bitcoin as a trading instrument, while investors see Bitcoin as something that they can store for long term value, something like “digital gold”
Bitcoin’s Rise in Popularity
Since Bitcoin was the first digital currency, it is still most popular cryptocurrency in the world.
Bitcoin was created in 2008. By Satoshi Nakamoto but it didn’t rise in popularity until few years ago. Big reason for Bitcoin’s rise in popularity is the fact that crypto market is very volatile, which means that price goes up and down many times in short period of time.
This benefits bitcoin traders a lot since they have a lot of profitable trading opportunities every day.
At the end of 2017. Bitcoin had a big growth and it reached a price of over $20,000 USD. Just remember that BTC price was not even $1000 USD in January 2017.
Making high returns in short period of time is something that is always very attractive and that is the main reason plenty of people decide to enter the world of Bitcoin and cryptocurrencies.
Bitcoin Price Prediction
It is very difficult to predict Bitcoin price due to high volatility of Bitcoin and the whole cryptocurrency market.
The media news play a big role in today’s Bitcoin price movement. Every time there are positive news about bitcoin and cryptocurrencies, Bitcoin’s price rises.
Trading Bitcoin has become very popular recently, and lots of brokers are listing Bitcoin, Dash, Ripple and Litecoin as trading assets on their platform.
Big exchanges in USA, CBOE and CME made BTC future contracts available in 2017. Forex CFD brokers in Australia and Europe started trading cryptocurrency CFDs over a year ago.
Even though most of the brokers you find will provide you with the possibility to trade bitcoin contracts, many of those brokers have very wide spreads.
Comparing bitcoin trading brokers showed that there are spreads in the range between $10, up to $200 USD. Price of Bitcoin at that time was $8100 USD.
How is Bitcoin created?
Bitcoin is created in the process of mining. Bitcoin mining requires very strong and powerful computers. Bitcoin supply is 21 Million and after that, it will not be possible to mine Bitcoin or create it in any way.
If you are not interested in investing funds in computer equipment and software for Bitcoin mining, don’t worry, you can still get get your hands on Bitcoin.
How to Buy Bitcoin with Credit Card?
Cryptocurrency exchanges usually require you to already have Bitcoin or some other crypto currency in order to start trading on those exchanges. This is a problem for average user since most people do not posses any crypto currency.
So, how can someone buy Bitcoin with simple credit card transaction? Lucky for us, there are several services that offer this type of service and one that we can recommend is Changelly.
2. Forex Trading
Forex is a term derived from the two words “foreign” and “exchange”. Various currencies are traded on the Forex Market at the agreed price. Forex traders are making trades in one currency in exchange for another, at a specific price.
How Can I Start Forex Trading?
In order to start forex trading you need to sign up with a forex broker.
After you select your broker it is time to open real money trading account. Good place to start is with the forex broker that offers demo account for forex trading.
This way you can start trading and practice different forex trading strategies without risking your own money.
Forex Trading brokers are usually web based and they don’t require any software installation.
Automated Forex Trading and Forex Robots
Forex Robots and Automated Forex Trading give you the opportunity to trade using robots and trading algorithms.
Forex Trading using Best Forex Robots will allow you to trade with no emotions involved. You will be able to place your trades automatically thanks to the trading algorithm of the forex auto trading robot.
4. Binary Options Trading
Binary options are prohibited in the European Economic Area.
Binary options are quite different from regular trade options. While regular options give you the right to sell or buy underlying assets at a certain price, binary options only give you a fixed return if the asset sells at a lower or higher price. The core of binary options trading is making predictions on the future price of an underlying asset.
The prediction can only be for an upward or downward movement in price, even if it is by a few cents. When you pay for a binary options contract, you are agreeing to receive a percentage (usually between 65% and 81%) or lose the same percentage if your prediction is wrong.
Given that the entire outcome of the trade depends on you, the trader, you must know how to influence a win, in this case an in-the-money deal. An in the money result happens when your prediction is right, earning you a payout. Some knowledge on market trends and a few tips will help you trade better and increase your gains in binary options.
The first thing you should do before making a go at binary options is learning as much as possible about the method of trading. There are many online tools that one can use to increase their knowledge of binary options. Choose a simple course or tool whose teaching guide uses plenty of visual aids.
Second, begin by opening a demo account. Most binary options brokers give access to demo accounts, which hasten the learning process for the new trader. A demo will enable you keep track of changes in the binary in real time, without risking losing money.
It is a great way to learn strategies, know how the trade works and learn the best approaches to take. When you are finally confident of your demo skills, you can make a go at trading with real currency.
The demo account is largely tied to the kind of broker you use. A good broker should be able to provide a good platform in which to trade. In addition to user friendly navigation tools, they should provide customer support, helping you where you are stuck.
Choose a broker who has been in the business for a while and has a proven track record. Brokers dealing in binary options tend to specialize in this method alone and so are able to provide the best instruments and terms of trade.
It will pay to understand how the market works. Do not attempt to try your hand in binary options trading just because everybody else is doing it. Take the time to study what is required, know all the rules and regulations, find out what factors are likely to affect the value of the asset and any other important detail that would have an effect on the outcome of your prediction.
Know when to enter or exit the market. This is very crucial for the person who wants to make money. Just like the stock market has seasons, this too has its good and bad timings. To get to the stage where you can correctly predict the movement of asset prices, you will need to dedicate a lot of time to learning about the market.
If you are using a good broker, this will be easy as they will provide all the advice and technology needed to give you in depth information. Charts and graphs that you can interpret and a history of market performance are just some of the tools that can help you know what the best times to buy into the market are.
Binary Options Trading Platforms – Binary Options Broker
Every process has elements and various stages, and the same is true for binary options trading.
However, one of the crucial steps involved with the process of how to get into binary trading is inextricably tied to the selection of the binary options trading platform, i.e. binary options broker.
And the choice is certainly wide.
Yet, with over 200 brokers offering their services to traders this could be an overwhelming task.
However, by first inspecting the well-known and appreciated industry names such as:
- IQ Option
Once the trader has selected a preferred broker (or brokers) this is what he needs to do in order to get into binary options trading.
Step by Step Guide to Binary Options for Beginners
The first thing after deciding on the broker is to go through the registration process. This should be a simple process, taking only minutes to finalize. Traders also have to make a deposit, the requirements concerning the amount vary from one binary options broker to another.
Yet, with most brokers, this is set at $250. HighLow is an exception to that rule with the $50 minimum deposit requirement which makes it extremely popular among traders, especially those who are beginners.
Once this is done the traders are free to embark on the actual trading process which, again, consists of several steps.
Four Essential Steps in Binary Trading for Beginners
- Step 1: select the underlying asset, usually there are four groups of asset available – commodities, stocks, currencies, and indices
- Step 2: select one of the available expiry times
- Step 3: invest the preferred amount of money
- Step 4: make an educated guess of whether the price of the asset selected is more likely to increase (Call) or fall (Put)
In a nutshell, this is how to get into binary trading if traders opt for manual binary options trading.
However, considering the advanced technological age we live in, groundbreaking auto trading systems have been developed to further aid the trading procedure. Especially considering the ever-increasing number of beginner traders who wish to have a profitable trading journey.
Binary Options Trading Strategy
Take advantage of stop loss strategies. The stop loss is used widely across all financial platforms as a way of minimizing loss for investors. Each market tool has its own unique stop loss terms. Understand what the terms are for the tool you choose to trade in so you can use it to your advantage at the right time.
The market you are trading in will also determine the type of trade loss used. Average markets tend to have tougher stop loss strategies than volatile ones so if you are buying a contract for one such market, you must understand perfectly well how the market operates and how to make the right timing to invoke a stop loss.
How Does Binary Trading Work
If you are new to binary options trading, you may find that you have a very low level of risk tolerance. In this case, you will need to invoke the stop loss to protect yourself from high losses. As you gain experience, you will gradually adopt strategies to minimize your risk of loss. At this stage you will find that you no longer require stop loss strategies as much as you previously did.
If possible, buy options in a market that you are somewhat familiar with. This will reduce the likelihood of making the wrong predictions as you already know the market pattern and what to expect. If you have invested in the commodities market before, you might want to consider starting your binary options trade with a contract in the commodities as opposed to one in the forex market. You are likely to have more confidence in your prediction/decision when you choose a market that you are familiar with.
Again, stick to the less volatile markets, those whose performance is rather predictable. With these markets, you will in most cases know how certain happenings in the market affect the value of the asset.
Becoming a Binary Options Broker
We have all been there, taking up something new and having a head full of questions. This can be especially frustrating when everybody around you seems to use terms you do not understand and walk about as if they know everything from A to Z. In some instances, this is harmless, even entertaining to a degree.
For an interested individual who is hoping to earn some extra money in trading, trading to make sense from all the different terms used in the industry can be a nightmare.
Hence, in this article, we will try to introduce all the major aspects of binary options trading and especially highlight the difference between becoming a binary options broker and binary options trader.
Becoming a Binary Options Broker … or Not?
If one has just heard something about binary options trading and how profitable it can be, in all likelihood that individual has also heard terms like “becoming a binary options broker” and becoming a binary options trader”. Let us make clear that these aspects of binary options trading are vastly different and these terms are not interchangeable.
For most people looking to trade binaries becoming a binary options broker is not what they want. Instead, they wish to become binary options traders. Binary brokers are actually companies which posses a trading platform where traders then trade binary options.
The entire trading process happens online, which means that traders get to access the trading platform via a browser. They do not even have to download anything in order to start trading.
Naturally, there are plenty of business companies who have decided on becoming a binary options brokers. But considering the fact that there are some 500 binary brokers vs millions of existing and potential binary options traders, the numbers tell a poignant tale.
Nonetheless, binary brokers provide online trading platforms which offer a number of assets, usually divided into four groups – commodities, stocks, indices, and currencies – as well as various trade options and other useful trading features like the demo account.
The basic principle of trading binaries is fairly simple and is centered on a single fact – the price of the selected underlying asset can either go up or down. Traders, based on their own market observation make an educated guess what is most likely to happen. And, based on that prediction, they will either make a profit or lose the invested sum.
Naturally, not all binary brokers provide the same level of quality but opting to enter the world of binary trading with some of the well-known binary broker names like IQ Option, 24option, PlusOption, StockPair or BD Swiss is a more secure path.
Another benefit of trading binaries is the fact that location does not represent any issues as most (if not all) brokers offer a mobile trading app so traders can use the trading platform at all times.
Becoming a Binary Options Trader
Becoming a binary options traders instead of becoming a binary options broker is what most are actually aiming for. And, as procedures go, this is a fairly simple one.
A person interested in trading binary options will have to find a suitable broker and then create a username and password.
The next step is making the deposit with the selected broker. In most cases, the minimum deposit is set at $250 though, one of the most prominent brokers in the industry, Ayrex, has a $25 minimum deposit rule which makes binary options not only attractive prospect but an affordable one as well.
With those perk, another aspect which is appealing to hopeful traders around the world is the straightforward principle of binary trading, which makes it fairly easy to understand and later apply in the trading process. Still, those hoping of becoming a binary options trader need to understand that knowledge and skill are required. Which is where binary brokers come in again.
Most of the professional and respected brokers will have invested into a comprehensive Educational Materials section.
In recent years there are plenty of webinars and video tutorials as well as articles on how to become a successful binary options trader and earn hefty sums included in the educational materials.
We urge all traders, be they beginners or professionals, to constantly check this section for news and updates as that can only be a positive contributing factor to their success in the trading process.
Understanding the Difference: Becoming a Binary Options Broker vs. Trader
In making sure that interested individuals understand the difference between becoming a binary options broker and a binary options trader, it does become easier to understand the basic terms.
This, also, means that people are less likely to end up confused and deterred from getting involved with this online trading enterprise which can have a significant positive outcome in terms of additional profits and new skills learned along the way.
Auto Trading Systems – Perfect Binary Options for Beginners Approach
Auto trading systems, also known as binary robots, have taken the industry by storm. And it is not hard to understand why. By utilizing these advanced trading systems even those who lack experience in trading can achieve profit.
There are several advantages to using binary robots as a means on how to get into binary options and the fact these solutions are mostly free to use is just the icing on the cake.
Meaning, traders do not have pay extra fees to use the binary robots.
Rather, they have to make a deposit with the binary options broker which supports particular auto trading system and then continue with the process.
Most Popular Auto Trading Solutions on the Market
While various available binary robots such as the popular Binary Options Robot, Simple Auto Trading, Binary Robot 365 or Option Robot all have features specific to a certain product the guiding principle is the same.
Traders need to adjust the features to their liking (which assets they wish for the robot to trade, which strategies they wish to use etc.) but then the system, taking these specifics into consideration, embarks on scrutinizing the market using state-of-the-art algorithms.
Accordingly, the binary robot will place the trades which are most likely to be profitable.
Another thing which should be included in advice for binary options for beginners is to always look for an auto trading solution which demands that traders be online when the actual trading process takes place.
That way traders will always be able to monitor what is happening and the possibility of scam is minimal.
For many beginner traders this is the perfect way on how to get into binary trading as the pressure to make a profitable trade is not squarely put on their shoulders.
Regardless of the manner of trading binary options, being informed, staying informed and being aware of the risks as well as using all available help is the best way to approach the trading process.
Traders must keep themselves constantly informed. Bitcoin Robots and Forex Trading Robots are, indeed, a legit trading tool which you can use to increase your profits in online trading.
Unfortunately, some trading platforms and robots are scam.
This was the main reason why it is important to gather as much information as you can before you start your online trading journey.
Bitcoin Robots and Forex trading robots that are safe and trustworthy can increase traders profits and help them to achieve financial freedom.
Bitcoin Traders and Forex CFD Traders should not hesitate to get free account with them.