What is online trading?
Online trading is about trying to make a profit based on the fluctuations of the financial markets. Trading the financial markets can bring high returns as long as you use adequate tools, techniques and strategies. Bitcoin Revival is a comprehensive guide to trading that comes from the experience of a group of finance enthusiasts with the aim of sharing our knowledge about brokers, techniques, winning strategies and tricks: we want trading to be profitable for everyone !
If you want to start trading, we recommend starting with the ForexTB platform (click here) which provides the absolute best conditions for opening a free trading account and allows you to get started with the telephone help of a true expert that guides you step by step! This way even less experienced traders (or those who have never traded before) can start without problems.
Let's start our guide to online trading with the ranking of the best brokers.
Our experience teaches us that the choice of the broker with whom you operate on the financial markets is very important. Among the fundamental factors to consider when choosing a broker are reliability, security, the offer of a free demo account.
Online trading: what it is
Trading online essentially means speculating on the financial markets using the services of a broker, accessible via the internet. Understanding how it works is the first step to being successful, which is why we have decided to publish this guide that explains what trading is and how to get started.
The idea behind online trading is to earn from the change in asset prices on the financial markets. We have several markets available: forex, stock exchange, commodities, bitcoin trading, government or bond securities, indices, etc.
The goal is obviously to obtain the maximum profit, with the minimum risk and in the shortest possible time. We are talking about minimum risk because operating on the markets always involves risk. This risk can be controlled (there are techniques to control the risk) and minimized but it can never be reversed. It is good to always keep this detail in mind: the good trader is not the one who avoids risks, he is the one who calculates and controls them.
We try to answer as completely as possible to the question What is online trading ?.
There are numerous forms, the simplest is to purchase a financial asset and wait for it to increase in price. For example, many people who play the stock market from home rely on this type of mechanism.
They open an account with a broker like Bitcoin Revolution, buy a share listed on the Milan Stock Exchange and wait for the value to increase. In the meantime they can collect the dividends distributed by the company and can, if they wish, also participate in company meetings, even if this almost never happens.
The main disadvantage of this approach lies in the fact that you gain if the share price rises but you lose a lot if the share price falls. Usually this type of operation is only recommended if you want to keep the stock for a long time (long-term investment), perhaps in the case of companies that distribute large dividends consistently. In stock exchange jargon, we speak of drawer titles.
To take advantage of short-term movements with online trading, however, derivative instruments are used. Talking about derivatives can scare someone since the mass media have associated a very negative meaning with this word but in reality there is no danger in working with derivatives, quite the contrary.
A derivative is a financial instrument whose value depends on another, called an underlying. For example, we can think of a derivative as a financial instrument whose value depends on the listing of a share on the Milan stock exchange.
Continuing the example of the stock market, derivatives do not give the right to participate in company meetings and do not allow dividends to be collected directly. However, they allow you to earn both when the stock rises and when it falls, the important thing is to correctly predict what the market trend will be. They are perfect for short term operations while they are inconvenient (and not recommended) for long term operations.
Derivatives on long maturities can be useful for hedging in the case of a real business but dealing with this case would make us go a lot off topic, since our guide is dedicated to online trading from home.
Getting started as a trader
Who wants to start as a Bitcoin Trader, therefore, must first decide what type of tools to use. For the very first experience we always recommend an extremely simple trading platform to use but it is a choice that obviously also depends on the particular sensitivity of the trader and his personal tastes.
We have opened this page with a ranking of the best Italian brokers. Choosing a broker in the ranking means guaranteeing the best economic conditions and above all reliability and honesty. All the brokers we have chosen, in fact, have been strictly authorized and regulated, in full compliance with European legislation (MIFID directive).
Trading online: basic principles
A good guide to online trading cannot be separated from risk analysis: profits can be high but there are also risks, some can be eliminated, others cannot. In general we can distinguish risks of three types:
The risks associated with the broker are those associated with the platform you choose to speculate on the markets. It can happen, just to give an example, that the platform is unsafe or not very honest, or that it is technically inappropriate. It is clear that this type of risk can be controlled without problems, it is sufficient to choose high quality brokers, for example those we have included in our ranking.
In general, we can trust (and therefore eliminate this type of risk) by choosing brokers who have been authorized and regulated by any authority based within the European Union and who therefore comply with the MIFID directive which has precisely the objective of protect the trader and always guarantee maximum transparency and maximum protection of the money deposited in the account.
The risks associated with the trader are those associated with the psychology of those who operate on the markets. Too often, in fact, attention is paid to trading strategies and instead we forget that the first factor of success, together with the broker, is precisely psychology. Head and heart, that's what makes the difference. A trader must fully believe in what he does, if he lets go of the first difficulty he will obviously not get any positive results. Courage, determination, the ability to always go all the way are the essential virtues for those who want to earn by speculating on the financial markets.
Willpower helps to resist problems but also to study: you never stop learning about the markets, whoever stops studying is lost.
We must not underestimate, for all those who trade online from home, the problem of distractions: if you are not alone at home, it can happen that concentration is disturbed by family members and concentration is really important.
The risks related to the broker and those related to the trader are absolutely avoidable, those related to the market are not: the profits are there precisely because there is risk, absurdly if there was no risk there would be no return either. Profit is nothing more than the remuneration of operational risk. Those who do not know what online trading is does not even understand this important concept and therefore ends up really losing money.
This does not mean that the trading risk must be accepted and that's it, quite the contrary. It cannot be canceled but the risk must always be controlled and calculated. To reduce risk, in addition to using appropriate strategies, it is also important to do money management, that is to avoid concentrating your capital excessively and pursuing a policy of diversification.
Where to trade online
To trade online you need to open an account with an intermediary, called a broker.On the broker site, you will find the best crypto trading software, you can have the review here: Bitcoin Revolution Truffa The broker can act, in fact, as a simple intermediary and therefore simply collect the orders and then pass them on to another entity for execution on the markets.
In the case of instruments such as CFDs, the broker usually also acts as a market maker, i.e. it is the counterparty with which derivative contracts are entered into. Quality brokers usually cover the markets so they don't get into a conflict of interest with their clients.
However, not all brokers follow this policy and we paid the utmost attention, when we made the selection to write this trading guide, to choose only brokers who adopt such policies.