Hints & Tips: Understanding What You Are Doing When Trading Online

MyPR: Hints & Tips: Understanding What You Are Doing When Trading Online:

Johannesburg, 01 April 2021: If you are considering starting out trading forex or stock online, there are a few important factors to consider. Daniel Kibel, Founder of CMTrading, provides a few pointers for would-be traders.

“For a beginner starting out with trading, the most important thing is to be informed. Ideally starting with a trading course of some kind is the best thing to do. Knowing how to open and close trades, finding a reputable trading platform and reading up on best practices are great places to start. Yes, there are things you will pick up along the way as you trade, but starting with a good foundation of knowledge is so important.

“Some like to begin by trading on demo accounts. Personally, I feel it is better to start trading with real money – even the smallest amounts possible. Getting the ‘feeling’ for trading is far more of a reality with a real investment, however small. I highly recommend taking the plunge (without putting yourself at risk of losing a large amount) and doing the real thing.

“When choosing a trading platform, there are two important factors to consider. First, particularly if the funds are staying within South Africa, check that the company is regulated by the FSCA (Financial Sector Conduct Authority). Secondly, most companies offer a variety of trading avenues – online trading, app trading, downloadable trading options and various others. The platform you choose to use should be one you are familiar and comfortable with using. Once you have made sure your investment is in safe hands by checking on the necessary regulatory standards, look into popular trading platforms and see what works best for you.

“It’s a major red flag if the company is not locally regulated. Even though many companies claim to be regulated, some are not. Others may be regulated abroad. Your first port of call should be to check that the company is locally regulated so that your funds remain in South African borders. You can double check the company’s status on the FSCA website, simply by doing a search for the financial service provider’s company name.
“In terms of educating yourself on the markets, there are many videos and articles online – for example, on the CMTrading website – that are regularly updated and provide a good source of information. If you choose to do a course, which is advisable, research is always key. And that goes back to checking that the course provider has legitimate credentials and is not simply out to ‘take your money’. Of course, you won’t become an expert trader following a two-day course and some courses can be expensive. Take a long look at the value the course offers in terms of content versus your investment and make your choice from there.

“Most importantly, don’t risk more than you can afford. When you go into a trade, don’t wait too long to get out if you feel you have made the wrong decision at any point. Know when you have had enough. Don’t overleverage and trade at a steady pace, rather than taking unnecessary risks with large sums of money. Consider placing a stop-loss order with your broker to mitigate your risk.

“If I had one key piece of personal advice for blossoming traders, I would honestly say, do what your gut says. But use a stop-loss or even take profit order to protect yourself. It’s easy to lose perspective with all the different opinions there are – in the news, in the trading community and elsewhere. Try to focus beyond that and stay informed your own way; then make informed trading decisions based on your ‘educated’ gut feeling. There is no ‘magical’ formula that guarantees a win every time you trade. But if you keep yourself informed and don’t take too many big risks, you can successfully stay in the game.”

For more information on CMTrading, visit their official website at www.cmtrading.com or call +27105008026, and one of their friendly staff will assist you.

CMTrading is the brand name of Global Capital Markets Trading Ltd (A Seychelles company, company no. 104785).

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