We’re past the era when investing and trading was a reserve for the financial experts and business moguls.
Today, almost anyone with a basic financial background, access to the internet, and sufficient capital can become an online investor.
Brazil is a clear testimony to this. An increasing number of Brazilians are now eking a living from the comfort of their homes.
Brazil, one of the largest economies in the world, provides a diversified portfolio of online investment options. The Brazil Stock Exchange (Bovespa), market capitalization, for instance, reached an all-time high of 106650 on July 12 this year.
See, the information overload from blogs is enough to keep your head spinning into confusion and a constant state of learning.
In the comprehensive guide below, we shall explore everything you need to know to get successful online trading in Brazil.
How Online Trading Works
There’re various financial assets that you can trade, and they include Forex, stocks, CFDs.
Users often profit by maximizing on the short-term or long-term fluctuations of the financial assets.
Traditionally, trading of financial assets was dependent on stockbrokers in person or through the phone.
But with the advent of the internet, online brokerage firms simplified the entire process. Now, both traders and investors can access a full suite of trading instruments across the globe at the comfort of their home.
How Do You Maximize your Online Trading?
See, online trading involves the probability of losing money, but at the same time, it also has the promise of making more money.
To succeed, you simply need to know how the market works and learn how to manage the risks, and understand how to trade with currencies at IQ Option.
Trading smartly will keep you in the game, while at the same time putting more money on the table.
Let us see the basics of smart trading;
Pick and Learn a Trading Asset
You can never be a jack of all trades in online trading.
Rather than diversifying in different online trading, pick one that you think you’ve an interest in and learn it.
After all, even the professionals who have been in the industry for long attest that there’s still more to learn on a single strategy.
Again, focusing your efforts on a single asset will set you up for success.
Choose the Right Brokerage Firm
Besides choosing an asset, the choice of brokerage firm is the second most vital factor that significantly affects your success.
Before partnering with a brokerage firm, ensure your investing style. See, choosing a good online broker is like choosing a shoe; if you don’t know your shoe size, you will never get fitting one.
There’re plenty of factors to consider when choosing a brokerage firm, but here are a few different points to keep at the back of your mind when doing so;
- Find a broker that matches your investment style
- Find a broker with a diversified online portfolio
- Find a broker with reasonable costs and fee
- Use broker comparison services
Stick to a Reasonable Portion Size
If you’re starting, it’s wise to start small.
The same case applies when you’ve a new trading strategy and are still not sure of its efficacy under certain conditions.
Ideally, it’s recommended that you don’t expose more than 5% of the investment into the open market.
If for instance, your account has $100, you should only expose $5 to the market.
Ensure that you’ve a smart strategic plan, which outlines the specific ways of how you’ll trade with currencies at IQ Option, how to go about it, how you expect to make and how much time you’re willing to devote to the business.
Before you execute any plan, you should first make rigorous research, test historical data, and as well as the live market.
Again, you must consider your trading style and determine what style would best suit your trading endeavors.
2 Common Mistakes Beginners Should Avoid when Trading online
Not having a plan
Failing to plan is planning to fail.
Failure to have a well-thought plan will only set you up for failure.
So, ensure you develop a winning strategy before taking the plunge.
Frequent Change of Trading Strategies
Changing your trading strategy after every loss is detrimental as it set you back on the learning curve. This is because you can never master any of the trading strategies.
Instead, you should focus on mastering a single strategy and making the best from it.
You now have the actionable information on how to jumpstart your online trading journey. Follow the guidelines above, and you should start to experience some form of success sooner or later.