Online trading has been a growing trend in recent years, thanks to the popularity that has spread outside the IT sector. Obviously, even if many sellers of online courses would like to state otherwise, it is not a magic method whereby you become rich overnight. We are talking about a real profession that involves an investment in money and like all investments, there are possibilities for excellent returns, but it is not without risks.
In this article, we will try to explain the most common mistakes made by those who try to make money with online trading and how to avoid them.
Building a background
The wrong thing to do is to start without training, but the problem is that many people skip this step simply because they do not feel like studying the systems behind online trading for hours. Others, on the other hand, feel they already have the necessary knowledge just because they saw
The good thing about this world is that almost everything you can learn about it can be read for free on brokerage sites, online forums, and even on many Facebook pages that, when well managed, can gather important information and advice.
Our advice is therefore to be patient, curious, and willing to learn before embarking on this adventure.
Practice a lot
Learning things on a theoretical level is the first step, but of course, it is not enough: you have to move on to practice!
Many people jump from theory to practice too quickly, investing large sums of money right away and immediately risking losing a lot due to inexperience. What is the best way to practice? Many platforms allow you to create a demo account through which you can create a virtual account and use "fake" money. This way, we can practice with 'fake' money before we start with our savings, making mistakes and learning without risking anything!
Look for simple investments, at least initially
Many people throw themselves headlong into online trading with very complex forms of investment, which would certainly require more experience and knowledge of the sector.
At least initially, it is better to stick to simpler and safer forms of trading, among which we can mention arbitrage, a type of investment that is safe and does not take too long and is therefore also suitable for beginners.
Don't rely on software alone
There is much software developed to automate the trading operations in order to limit losses while maximizing profits. This type of tool is very useful, but human intuition and knowledge are much more so, and we should never forget that!
A beginner might be inclined to invest everything in a single position that, for some reason, is in a very positive phase or has a lot of appeal at that precise moment.
However, diversifying is always best as it provides a safety net in case our main position of investment loses value.