How To Earn Money Using Online Trading | Capital Street Fx

 

Earn Money Using Online Trading in – Five Steps of Online Trading:

STEP 1. Which markets are the best to make a profit?

Which markets would he like to trade and at what time? In the following text, we will give you a brief overview of the markets and their difficulties. For most traders, it is best to use Forex and CFDs (Contract for Difference). This allows you to invest in virtually all markets at very low fees.

• Forex (currencies) are the most liquid market in the world. The volatility (strength of the price movement) is accordingly low. These markets are very suitable for beginners. You can invest with minimal capital and use leverage. In addition, trading fees are very low. In Forex trading you can catch very good trends and also react to economic news.
• Stock indices (Dax, S&P500) are a basket of different stocks represented in an index. Almost every country has such an index. These markets can be traded cost-effectively via CFD (difference contract). They are also very suitable for beginners.
• Cryptocurrencies are highly volatile and contain a higher risk than the other markets presented. This market is driven by various news and hype. Every investor should consider well whether he invests here. The movements of these markets are mostly irrational and incomprehensible.
• Stocks can also be traded very easily with an online broker. Even speculate on falling prices with a short sale. This is the ideal place to trade company news and catch global economic trends.
• Commodities are driven by global economic development. Political decisions can also influence prices. Commodities can also be traded very easily via CFD and long or short leverage.

STEP 2. Choose a reliable trading platform and Online Broker

It is essential that the provider has an official license for the financial markets. Brokers without a license can in many cases be considered fraudulent. In addition, you should be able to test the provider free of charge in order to gain an insight into trading and the markets.

Factors for a good provider selection:

• Regulation and licensing
• Free demo account with a virtual balance
• Small hand fees
• No hidden costs
• Stable trading platform
• Large selection of markets
• Fast and professional support

STEP 3. Deposit and withdrawal with the trading account

Use well-known payment methods such as bank transfer, credit card, online banking, PayPal and more. The account can be capitalized in real-time and you can start trading directly. However, the account must be fully verified before depositing. The broker will explain all the necessary steps

• Deposits in real time with electronic methods
• The majority of brokers do not charge fees
• Deposits already with very little capital
• Pay-outs are sent within 1-3 days
• Bank transfer, PayPal, credit card, online banking, cryptocurrencies and other methods

STEP 4. Hedge risk in order to earn money sustainably

Use these risk management tools:

• Stop Loss: Automatic loss limit that automatically closes the position at a certain price/loss.
• Take Profit: Automatic profit limit that automatically closes the position at a certain price/gain.
• Position calculator: Offered by the broker or integrated into the trading platform. This allows you to optimally determine your position size and adjust your money management.
• Sensible money management: The portfolio should be balanced. Positions that are too large can mean a quick exit for the account. Professionals use a risk management of 1 – 2% of the total account per position.

STEP 5. Create trading rules and strategy

Now you have to consider which trading approach you want to pursue. There are countless trading strategies for the markets. This includes a good analysis and the consideration of important market news. The demo account is perfect for trying out different methods.

Typical process of a trade:

1. Fundamental Analysis (News)
2. Technical Analysis (Chart)
3. Risk calculation
4. Position opening

Read More Click Here- How To Earn Money Using Online Trading