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Important advice before starting to trade online

Important advice before starting to trade online

With development of technology and emergence of modern technologies used in the trading arena, trading has become easier and available to everyone and provided many opportunities for traders, so online trading is somewhat similar to online shopping.

If you want to trade on Internet, you only need some basic things such as a bank account, a permanent internet connection, banking facilities, in addition to a computer with which to conduct trading matters.

Online trading

It is simply buying and selling financial assets such as stocks, futures, currencies and bonds over the Internet by trading CFDs through the trading platform, and this means that you can sit at home, open your laptop, log in to an online trading account, and start buying or selling Stocks, currencies, etc. and earn money with just one click.

You can trade at any time and from anywhere using online platforms, there are no working papers involved and there is no need to go to the brokerage house or the stock exchange to trade stocks, everything is on the device you are using, whether it is a laptop, tablet computer, desktop or mobile phone, Which saves a lot of time and effort.

Online trading provides ease of checking your investment all the time. You can also place your orders, execute your trades and monitor them at any time. Online trading is characterized by low costs and brokerage firms compete with each other to offer investors low costs and commissions.

Things you must take care of before starting online trading

  1. Create a trading plan

Before entering into trading and exposing your money to risk, you need to know how to make a profit, the steps that will be taken to achieve potential profits are specified in the trading plan, the trading plan is a personally written document explaining what we will trade, when and how we will enter into trading, why, when and how we will exit from Winning and losing trades and how they will determine the size of your position, all of the above are the basics of trading, some additional rules can be added over time as needed.

  1. Test your strategy or trading plan

The second task after defining your strategy is to test it and ensure its effectiveness through the demo account, which is a virtual simulation of the real account.

If your plan does not work in the demo account you must review it again, and then test the changes to the demo account again, this process continues until profit is made for several consecutive months, at this stage it is most likely that a good and effective trading plan is.

  1. Establish a daily trading routine to avoid mistakes

If you are serious about trading and want to be successful in it, it should be a special job for you, by creating a trading routine meaning that you wake up at the same time every day and start trading at the same time every day, and check economic data releases that may be It has an impact on the market, and after the end of the trading day review all the trades that were made.

4 Avoid making deals during high-impact news releases

It is better to stay away from making trading deals at times of high-impact data or news releases because their impact and direction cannot be predicted, it is advisable to wait for the news release and then use day trading strategies to take advantage of the volatility that will follow the event.

5 Use a stop loss order

A stop-loss order ends the deal if the asset's price does not move in the expected direction, it is impossible to predict what the market will do from one moment to another with great accuracy, and thus losing trades occur, a stop-loss order protects the trader from the largest losses during those times.

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13 Jun 2022
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