WebRTC Expert Feature

October 17, 2018

Trading and Investments Your How-to Guide




It is estimated that there are roughly 3.8 billion Internet users from around the world and this figure is only expected to increase. It therefore stands to reason that the number of online investors is continuing to grow in tandem. Countless individuals are interested in learning the benefits associated with online trading, and for good reason. Not only can this practice provide an additional source of income, but it offers an intuitive sense of flexibility that would not be possible with traditional forms of employment. Let us look at some of the basic principles behind digital investing.

Knowing the Types of Underlying Assets

The first concept to appreciate involves the types of assets that can be traded with the help of a digital account. Some of the most prevalent include:

  • Stocks and shares
  • Indices
  • Treasuries
  • Commodities
  • Forex (currency) trades
  • Contracts for difference
  • Spread bets

Of course, each of these is associated with its own set of benefits and it is wise to perform additional research to determine which options are the most appropriate for your style of investing.

Conservative Versus Speculative Trades

Conservative investors tend to enact risk-averse trades when seeking a sustainable form of long-term growth. Thus, assets such as commodities and blue-chip stocks are often appealing. On the contrary, those who desire short-term profits will seek positions associated with a greater amount of liquidity such as Forex pairs. They may also utilise leveraged positions to capitalise upon such growth. A balanced portfolio will often be comprised of both ends of the spectrum; helping to stave off potential volatility associated with a particular sector.

The Increasing Importance of Cryptocurrencies

The digital currency market has grown exponentially in recent years. So, what are cryptocurrencies? They are basically a type of digital money created from code. These transactions are completely decentralised and their anonymous nature is often used to carry out secure transactions. Such flexibility has likewise appealed to investors, as certain currencies can dramatically increase in value. For instance, (at the time that this article was written), the market capitalisation of the Bitcoin alone is said to be worth a staggering $101.96 billion dollars. Savvy investors can utilise this upward momentum to turn a healthy profit within a short period of time. However, it is just as important to mention that a significant amount of money can be lost due to the liquidity of this sector. Once again, pragmatism and research are both necessary to mitigate any potential losses. This brings us to the final point.

The Digital Learning Curve

Becoming successful in the world of online investing will require patience and time. Although you may enjoy a high ROI as the result of a specific trade, losses can also quickly mount. This is why astute investors will regularly access the real-time information and advice associated with CMC Markets. Knowledge is power and there is simply no substitute for a well-rounded trading strategy. Appreciating the basics of this digital community represents the first step towards securing a lucrative and dependable side hustle. The most successful investors understand that there is always something new to learn. Humility and prudence are the ultimate keys to financial freedom.

Author:

Craig Daniel is the CEO of Craig Daniel Marketing, a digital marketing agency. Backed up by ten plus years of experience in a variety of industries, including finance, marketing, and online technology, Craig is known for his skill in transforming company’s visions and goals into tangible revenue. As an expert in advanced SEO, paid advertising, and inbound marketing he is passionate about sharing his knowledge with others and helping businesses reach their full potential.







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