Trading can be an exciting way to earn an additional income. However, before you start trading you need to learn a few things. Knowing what to expect, what tools you need, and a few techniques will help prepare you so your entry into trading is as smooth as possible. The following things need to be considered before you start trading:
1. Getting to know the market
Traders can trade within many different markets which include the stock market, forex market, options market, and Contract for Difference (CFD) markets.
The stock market involves buying/selling shares of a company. The forex market is the largest market in the world and involves the exchange of one currency for another. The options market allows participants to undertake positions in the derivative of an asset, so the option is not ownership of an underlying asset. The contract for difference (CFD) market allows traders to speculate on the rising or falling prices of instruments such as currencies, shares, indices, and commodities.
When a market is moving downwards, it’s called a bear market. You can take advantage of this through ’short selling’ which involves selling assets or (derivative) you do not own in the hope of buying them back at a lower price in the future. The difference is your profit.
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21-12-2017, 07:05 AM #1
A step-by-step guide on how to start trading
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28-12-2017, 09:08 AM #2
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There are almost thousands broker in online retail market place and most of them are found to be scams. So it is very much difficult to find a right broker from all, we can choose the broker like Forex4you which is more appropriate to the concept of trading that will be used, the traders who are particularly scalpers should choose the broker that allows trading concept such as this. My broker allow all kind of strategies.
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