Have you ever wanted to explore the many different options available for making money with financial markets and stock trading? If so, you will find some great value our article today.
With cryptocurrency, the stock market, and forex trading always getting so much attention, it’s important to have a good understanding on each before you get started. All of these options are great, if done correctly, they can all lead to more passive income.
To help with this process, we’ve provided some of the best resources on each for you below.
Why Beginners Continually Seek Out Forex Trading
The Foreign Exchange (Forex) Market remains are the world’s largest and most liquid financial market due to the fact that nearly every country requires the use of various currencies to engage in trade and other transactions. Since the market itself is relatively large, several budding investors and even seasoned traders are encouraged to study its trading system as well as develop their own.
To start a Forex trading system is more or less a method of trading Forex that is based on a series of analyses conducted manually or automatically. These analyses provide traders with cues to determine when is the best time to buy or sell a currency pair at a certain period of time. Many of these cues may be derived from vast tools provided by the trading platforms like fundamental analysis tools, technical charting tools, or news-related cues.
For manual trading, investors may need to spot the different cues themselves by actively looking for the signs and signals on when to buy and sell; whereas for automatic trading, the trader teaches the software to split vast cues and settle in their trade once these signals are spotted.
Create Your Own Forex Trading System
It should be important to note that there are pros and cons for both manual and automatic trading systems. Since both depend largely on the trader’s skills, hard work, and luck, there is no holy-grail of trading systems which means there is no risk-proof way to trade. Nevertheless, investors can still enhance their skills by developing their own Forex trading system. Here are the fundamental steps to remember:
- Establish a time frame – this depends on whether you may be day or a swing trader. While a person can be both, it helps to focus which trading style you primarily depend on to narrow your options.
- Determine the various indicators – this means finding out the factors that can affect the market’s trend. One example is using moving averages which focuses on the market price trends.
- Find indicators that support the trend – this involves using tools that confirm trends like MACD (Moving Average Convergence Divergence) indicator, Stochastic indicator, or an RSI (Relative Strength Index).
- Define the risks – this involves identifying how much you are willing to lose in the trade to help determine how you can better manage your currency during trading period.
- Identify entry and exit points – this involves pinpointing the exact time when you’ll be placing in your trade and when to close it to make the most profit.
- Practice on a demo account – Several trading platforms provide demo accounts that allow traders to get accustomed to the market before switching to live. Investors can also use this feature to practice their Forex trading system to see how well it would fare before handling actual trades.
When it comes to trading Forex, certain steps as well as various tests are required to find out which system works best for you. Since every investor has different trading styles, one must be willing to test their own strategies when it comes to developing their own system.
Is Cryptocurrency the Future of Global Payments
You’ve likely heard about all of the discussion on bitcoin and other cryptocurrency names lately. If you’ve had the opportunity to gain access to any Bitcoin before it shot all the way up to almost $20,000 per coin, (and sold), you will likely have made a nice profit!
However, if you’ve taken a look at the Bitcoin prices lately, you will also see that they’ve dropped dramatically, to around the $4,000 market.
With so many coins on the market these days, and with fluctuation and regulation all over the place, it’s hard to tell where and how this virtual currency can and should be traded. Some people are holding for the longterm and hoping for an eventual $100,000 per coin price, while others are jumping in and out of different coins daily looking to make a quick profit.
How to Get Started with Your First Crypto Trade
Much like any other type of trading, you will need a platform that allows you to trade in the currency or market you are interested. In the case of crypto, Coinbase has become one of the most well-known and successful trading platforms in this space.
However, depending on where you live, it will be easier/harder to actually have your account confirmed and approved for trading. It’s also important to note that you don’t just need to trade Bitcoin, there are many other virtual currencies out there as well.
Investing vs. Day Trading with the Stock Market
Longterm, the stock market has always been a safe best. Just look at the chart over the past several decades (or even just the past five years, below) and you will see a nice uphill climb… however, when a bear market hits, it often hits hard.
This is where the big differences between investing and day trading matter. Investing is usually done through financial institutions that make trades or investing moves for you, or is done through online brokerages like Etrade or Ameritrade. Customers will buy stocks and hold them for a while, hoping for a nice longterm gain.
Day trading on the other hand is the complete opposite. The concept here is to jump in and out of stock within just a few days, and sometimes even just a few hours or minutes. Someone who has mastered this process extremely well, is Timothy Sykes. He actually turned $12,000 into now more than $4 million!
Trades, Trades, and More Trades
When it comes to either method (day trading or long-term investing), there are plenty of online resources, tools, courses, and training programs that you can follow. However, at the end of the day, since this is your own money, it’s best for you to make this decision on your own.
The good thing about stock trading sites like Etrade and Ameritrade, is that they allow for both types of trading, and also the total control over funds in your account. They also have low entry points as well, usually with minimums around $500.
Choosing the Best Financial Investing for You
At the end of the day, the way you invest and try to make money with your own money, is your choice. For the majority of us bloggers and online entrepreneurs, we often prefer to invest in ourselves and growing our companies in the process.
When it comes to investing in your future and managing finances, we simply provide you with the best information, tools, and resources to help make a better decision. All the best in your financial trading journeys!