What do you need to start trading online? Beginners' guide

A Beginner's Guide to trading online

June 26, 2020
12 days ago

Internet and new technologies have opened the door to the popularization of trading. We can now buy or sell financial instruments with a single 'click' of our computer mouse. But what elements do we need to be able to enter the world of trading?

We will explain to you the essential tools to start trading online:

  • Training and knowledge

  • Initial capital

  • A personal computer

  • High-speed internet

  • What if the power goes out?

  • Hire the services of a broker

1. TRAINING AND KNOWLEDGE Trading must always be managed with the appropriate knowledge and training. And it is not a short or easy path. Training a trader to be profitable takes a period of 6 to 9 months, sometimes more. The path requires effort and time.

2. INITIAL CAPITAL You should always use capital that you do not need for basic necessity payments. A suitable amount would be around 5,000 euros and if you have more, the better, of course!

And most importantly: when you enter the markets you don't think about how much money you are going to earn, but how much you are willing to lose. This allows you to control risk and generate profit. Money is your main tool: as for a surgeon it is a scalpel and for a carpenter it is wood

3. A PERSONAL COMPUTER Today any computer of around € 800 has the necessary capacity to carry out our work. And if it is portable, it allows us freedom of movement. Remember that our profession can be done in Central Park in New York or on the beaches of French Polynesia!

And very important: the computer that we use to trade we will use it only for our trading operations. We will not download anything from the Internet that could fill the device with viruses.

4. HIGH SPEED INTERNET You have to have the fastest connection you can get. And above all, always use cable Internet; Wi-Fi operation is not advisable, because wave interference can cause problems.

5. WHAT IF THE LIGHT GO OUT? In the event that you do not use a laptop, you can use an Energy Almentation System (SAE), a device that allows you to have light for a short period of time. If the power goes out, you can re-enter the market and protect your positions.

6. HIRE THE SERVICES OF A BROKER We must bear in mind that a broker does not work for free. He charges his services in the form of commissions, which is why it is so important to choose him well. He is our intermediary; without it we can neither enter nor leave the markets. The advantage of the online broker is that its commissions are generally lower than those of companies.

It is very important that when you choose your broker you take into account 3 elements:

  • Speak your language.
  • That you have personal contact.
  • That communication by email, telephone, or Skype is easy.

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