The term “trading” refers to the online sale and purchase of shares or other financial items. Online trading, acronym TOL, means trading in securities through a computer, having a current account and appropriate codes.
- Online trading is an activity carried out on the Internet that allows the trading of financial instruments on an exchange.
- Online trading is now a method used by investors in a complex landscape in which there are 3 distinct subjects involved: financial instruments, intermediaries and markets.
Respectively the financial instruments indicate financial products with which the exchanges are regular, they finance the investments, they manage the risk and they accumulate savings.
Intermediaries, on the other hand, are agents of the financial system whose activities are based on the production and trading of financial instruments.
The objective of trading is to invest part of the capital in order to get a return on it as a profit.
To simplify what is written about it we explain it in a simpler way
Online trading is the activity that allows you to invest online through the sale and purchase of financial instruments such as:
- Shares (foreign or Italian)
- Government securities
These operations have rather low commission costs, as they take place online, investors are provided with tools for monitoring securities and preferential channels on stock exchange performance.
Online trading in fact wants you to have the opportunity, is the ability, you view and understand the performance of securities and study the graphs to be able to invest with greater security.
Who is the Trader
We have understood what trading means and now we try to understand who the Trader is.
A trader is a person who deals with online trading, has an initial capital, an internet connection and an account with one of the brokers on the network.
These are sufficient conditions to start working in the online trading market by operating in the international financial markets.
The trader is a strategist, a person who knows how to manage risk and who applies winning strategies to earn money and decrease the chances of loss.
How much can a trader earn?
Although the idea of quitting one’s job and starting to make money online is very tempting the truth is that becoming an established trader and therefore earning enough monthly to make up for the lack of a monthly salary, the truth is that this practice requires discipline and knowledge.
This activity, in fact, especially initially, is not as profitable as you might think, inexperience would be the main cause of the loss of their capital without seeing any gain.
This does not mean that you can not earn as a trader, but this requires time and maturity in the industry.
Once you have become practical it will not be so impossible to earn 4000/5000 euros a month, but these figures come only after studies, patience and market analysis.
Profile of the ideal novice trader
The ideal novice trader should:
- Be able to predict market trends
- Study the functioning of the markets and learn how to trade on forex
- Be able to choose the right Broker
- Study and wait to enter the mechanisms of the market using free demos
- Do not initially invest a large amount of capital
- Consider this activity initially as a hobby and not as a profession
- Do not be in a hurry and act with caution
- Outline your strategy by practicing for free
- Learn how to manage risk and keep your mind cool and nerves steady, especially when you’re losing money
- Stick to the strategies of what is a systematic business and do not believe that you earn with luck
What is Forex Trading?
The forex market is the international currency market where you can trade the currencies of different countries in the world. §
Usually the main players in this market are central banks and commercial banks, but for years now, through brokers who act as intermediaries, even individuals can make profits from speculation between buying and selling currencies.
With this definition of forex market, forex trading is the speculative activity that allows you to profit from the fluctuation of currency prices on the forex market and the activity is based on the action of buying and selling currencies.
Currencies are always to be considered in pairs, if you can only buy one if you sell another.