9 Dec 2014

You Too Can Trade Stocks Online From Home


Trading is more of an art than a science. While the many of the principles follow scientific calculations and permutations, and you also can set up an automated trading system using robots, expert advisors, signal softwares and the likes, but you still need so many other qualities such as skill, patience, humility, good judgement, and many more, that make it an art that can be taught to others many times over.

What that means is that if you get a very good mentor or an experienced guide who has a proven successful strategy, and he is willing to teach you, you can also become like him, or even surpass him.

What I have discovered about the trading world is that if you have mastered your own strategy over time, and become successful with it, then you can start your own company/build follower-ship around it, and people will listen to you.

Do not give up on trading or buying stocks because some stock brokers made you lose money in the past. Start today to learn about investing and take it one step, one day at a time. And you will surely get there.

Most platforms that allow you to trade forex will also allow you to trade stocks. But note that while you can be given up to 1:2000 leverage in Forex (i.e. you will be allowed to trade $1 as if you have $2000), in stocks, the best you will probably get is 1:20 (i.e if you have $1000, you will only be allowed to trade as if you have $20,000).

So to trade international stocks online, you will need to open an account with an acclaimed brokerage firm. There are more than 200 of them online, Documents required are not any different from what you used in opening your bank account - a means of identification (International Passport, Driver's license or National ID), your utility bill or bank statement showing your address, but you may be required to scan and forward by email, the front and back of your Debit or Credit card.

You will need to have a setup similar to those you can see in the cover photo for this article. At least, two monitors will do, ideally.

A CFD, or Contract for Difference, is an agreement between two parties to exchange the difference between the opening price and closing price of a contract. CFDs are derivatives products that allow you to trade on live market price movements without actually owning the underlying instrument on which your contract is based. You can use CFDs to speculate on the future movement of market prices regardless of whether the underlying markets are rising or falling. You can go short (sell), allowing you to profit from falling prices, or hedge your portfolio to offset any potential loss in value of your physical investments.

A CFD can be used to trade anything presently being traded online including stocks, commodities, currencies, etc. Leverage here too is 1:20.

Check out this lovely article on bond trading online.

For success, you can also follow the following stock market information and advice-giving sites:

  • Online stock trading guide 
  • Sound mind investing - Christian investing website owned by Mutual Fund expert Austin Pryor, started in 1989 after he had a discussion with the late Larry Burkett about the dearth, at that time, of a Christian investing newsletter. 

I love this list of ten tips/rules I got from the artoftrading.net:
  1. Always wait for the setup: No setup -no trade
  2. THE BEST trades work almost right away
  3. Never take a big loss. If it doesn't 'feel' right, Remove it
  4. Always perfect your craft and sharpen your skills
  5. Be patient with winning trades: Impatient with sketchy trades
  6. DISCIPLINE to follow your plan is the key to winning in trading
  7. Never get emotionally attached to trades
  8. Always trade with the size that makes you unemotional
  9. Keep things very simple and don't over-think your trading methods
  10. Stay humble at all times
So that's it for now on trading stocks online. As I get more resources, I will update this article, or post it as a new article, and will definitely include it in the final ebook.

Now to Forex. 


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