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Trading 101: The 2020 Guide for New Traders

If you’re new to trading, you’ve come to the right place. AskTraders is here to help you succeed, no matter what financial instrument you choose. This guide is your introduction to online trading; you’ll find tips on finding your trading style, managing risk, choosing the right asset class, avoiding common mistakes, choosing the best broker, and the answers to any specific questions.

And at the end of the guide, there’s a section of helpful advice from professional traders to help you make more winning trades.

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Forex

What is forex and how can you trade it?

Forex Guides

What is forex trading? A definition Forex comes from the term foreign exchange trading. Apart from being called forex, it is also referred to as FX by broker comparison sites and traders alike. Forex is exchanged through a global network of businesses, banks and individuals. Due to the way the market operates, currency prices constantly…

What is corporate social responsibility and why does it matter?

Guides

In today’s society, many customers, employees and shareholders care deeply about the impact made by the companies they patronise, work for, or invest in. Ethical consumers, investors and workers want to support businesses that prioritise corporate social responsibility (CSR). CSR refers to business practices that support an ethical, responsible, sustainable approach to doing business, and…

What are sustainable ETFs?

Guides

With more and more investors keen to invest in socially responsible businesses, it is hardly surprising that companies within the financial services industry is responding to demand. Many brokers are now offering sustainable ETFs, also commonly referred to as ESG ETFs. These funds allow investors to trade in ETFs that have been pre-screened to ensure…

The best sustainable ETFs to have in your portfolio

Guides

With so many investors keen to get involved in ethical trading, it’s not surprising that numerous new sustainable ETFs have sprung up in recent years — many of them with a particular focus or theme. ESG-screened ETFs allow traders to trade ethically without having to research every single company they are interested in. ETFs pull…

The best socially responsible companies to invest in

Guides

While it is impossible to compile a list of companies that will suit every investor, when it comes to ethical trading, we have put together a list of some of the best socially responsible companies you may want to consider investing in. This is not investment advice. We strongly advise you to do your own…

Put your money where your morals are: what is ethical trading and why is it so important?

Guides

A growing number of traders are taking a much closer look at what their money actually does, when they invest in a new company or fund. They care about more than return on investment, and financial statements. They want to know that their money is helping to make the world a better place, and they’re…

No easy answers: the problem with socially conscious trading

Guides

Many traders believe that socially conscious trading is the way forward — a way to profit from trading while also making the world a better place. We have the power, as investors (and, of course, as consumers) to put our money where our principles are, and support the companies making the kind of impact on…

Ethical stocks: workers’ rights

Guides

For many ethical investors, workers’ rights and fair trade have become important issues. It is easy to assume, if you are investing in companies in the US, Europe and other developed countries, that basic workers’ rights are secured under the laws of those countries. But as many smart investors know, the welfare of workers is…

Ethical stocks: equality

Guides

Many investors hold equality and diversity as values that are very close to their hearts. These investors are in luck because many big companies have long realised the importance of equality and have put it at the centre of their goals regarding social responsibility. You’ll no doubt have noticed the ‘equal opportunities blurb’ on the…

Ethical stocks: environmentally friendly stocks

Guides

As you’ll know if you’ve been following our series on ethical trading, there are a lot of investors keen to find environmentally friendly stocks to invest in, and plenty of companies to choose from if you want your investments to have a positive impact on the planet. While there are many stocks that meet general…

Ethical stocks: animal welfare

Guides

When it comes to ethical investing, it is perhaps somewhat surprising that animal welfare has not had the attention that many people think it deserves. Traditional environmental, social and corporate governance (ESG) criteria do not tend to address it directly, and far more focus is put on general environmental impact, equality, governance and workers’ rights. This…

How to Buy Bitcoin on IQ Option

Crypto Broker Guides

1. Bitcoin Trading Offer Purchasing Bitcoin on IQ Option is a great choice if you want to secure a flexible, low-cost source of cryptocurrency. The product offer from this broker is top-notch; it is possible to purchase Bitcoin with just one click once you are signed up and your card details have been submitted and…

Bitcoin

How to buy Bitcoin on eToro

Crypto Broker Guides

Why use eToro? Founded in 2007, eToro is a reputable broker with well over a decade of experience and offers cryptocurrency trading as well as general forex trading, CFDs and trading in other financial instruments. The eToro exchange has its headquarters in Israel and is regulated in the UK by the Financial Conduct Authority (FCA).…

Crpyto

What is Ethereum? A beginner’s guide

Crypto Broker Guides

What is Ethereum? Ethereum is much more than a cryptocurrency. It is, in fact, a huge, open-ended decentralised software platform and also a programming language. It is the largest and most established platform of its kind, running a peer-to-peer network of virtual machines and allowing developers to build and publish distributed applications. Ethereum runs via…

Bitcoin

What is Bitcoin? A beginner’s guide

Crypto Guides

What is Bitcoin? Bitcoin is a well-known and frequently traded cryptocurrency (also referred to as a digital currency or virtual currency). It can be bought, sold and traded against other currencies on online exchanges and through online brokers who may specialise in cryptocurrencies or provide a wide range of other financial instruments as well. Bitcoin…

Crypto Exchange

How to Invest in Bitcoin long-term, without too much risk

Crypto Guides

 Well eToro have looked at this and come up with a solution that is for the longer-term Bitcoin investor. Here we shall look at how you can set up an eToro account that allows you to buy and own the REAL asset, that is Bitcoin, in an easy and affordable way for the long-term.…

Robo Trading

Stock options: A primer on stock options for 2020

Stocks Guides

What are stock options – how do stock options work as compensation Being offered stock options can be exciting. For the most part, a stock option is exactly that – the option to buy company stock. While stock options can become quite complicated, in their simplest form they are often offered as part of a…

Aktienanalyse

Chart patterns – an introduction

Stocks Guides

Chart reading for beginners – why use the charts for trading? When first looking at charts as a trader or investor, you will have a lot of questions. To begin with, you will want to learn just what a chart is and what it shows. You will also want to know the best techniques to…

guide cfd 3

CFD (Contracts for Difference) trading explained

CFD Guides

One of the most popular trading types It is worth starting out by discussing just how popular CFD trading has become, or Contracts for Difference, to give it its full title. When online trading began to gain popularity, traders wanted new ways to invest in stocks and other assets without having to play the long…

dividendenausschüttung

What are the best forex deposit bonuses to look for?

Forex Guides

Find which brokers offer bonuses For those trading in the UK market, there will be a broker comparison around every corner if you look hard enough. Everyone wants to get their name out there, and offering up a forex deposit bonus can be one of the easiest ways to tempt in new customers if it…

guide ETF

Individual stocks or index and mutual funds – which is best?

Stocks Guides

Individual stocks and shares In the UK, the London Stock Exchange is the main stock market where public limited companies and other financial instruments such as government bonds and derivatives can be bought and sold. The stock market is split into different indices. The FTSE 100 is the most well known and is comprised of…

DAX Trading

STRATEGIES FOR ONLINE STOCK TRADING

Stocks Guides

STRATEGIES FOR ONLINE TRADING There are several ways you can develop your knowledge and understanding of trading strategies, and once you have set up your first trading account you can start to learn how online trading works. Before setting up your account you should carry out a broker comparison so that you are able to…

Robo Trading

Candlestick trading patterns: All you need to know

Forex Guides

What is candlestick trading? A history Over 100 years before Western nations developed charting techniques, a Japanese rice trader developed candlestick charts. In the 1700s, a Japanese rice trader man named Munehisa Homma found that although the rice market was influenced by the laws of supply and demand, other factors were also important. One particular factor,…

Aktienanalyse

Trading Strategies of Famous Investors » Tips for 2020

Stocks Guides

Bet on the little guy – John Templeton’s small investments with large payoffs John Templeton earns a spot in this famous investors trading strategy guide thanks to his shrewd business sense and bold methodology, which led to him becoming one of the most famous investors of all time. Templeton founded his investment firm while America…

guide etf 2

Bitcoin ETF strategies that work – All the trading practices that you should know in 2020

Crypto Broker Guides

Bitcoin ETF basics Bitcoins are extremely volatile, and the cryptocurrency market is not under any regulation. This can prevent new investors from wanting to enter the market. However, when you opt to invest in Bitcoin-related ETFs, you can easily take part in a regulated environment. It is essential that you first find the best broker…

dividendenausschüttung

Best Stocks to Buy: An Overview of the Best Stocks in 2020

Stocks Guides

Guidelines for choosing stocks – what to consider While the act of choosing stocks can be confusing for beginners, the following guidelines should help you to make better decisions: Invest in stocks that you understand Stocks that offer an easy-to-understand business model are preferred to those that are more complicated. If you possess industry knowledge…

guide forex

Top 10 Forex Trading Tips

Forex Guides

1. Learn the Basics & Practice via a Demo Account Many new and novice traders do not take the time to educate themselves and then get hurt, often both financially and emotionally when they make mistakes. Beginner traders must remember to learn at their own pace and start with the basics. Start with the terminology…

Erfahrungen

BEST MOBILE TRADING APPS 2020

Forex Guides

What are the benefits of trading apps? In today’s fast-paced world, Forex trading has become a part of everyday business. Forex trading is larger than any other financial markets. Here, financial institutions and large international banks can trade foreign exchange in a decentralized environment. According to the Bank of International Settlements, this global trade is…

guide stocks 3

STOCK TIPS RIGHT FROM EXPERTS FOR INVESTORS INVESTING IN 2020

Stocks Guides

Understand your risk tolerance In investing terminology, ‘risk tolerance’ means the tolerance level of the trader with regards to the unpredictability and volatility of the market. Your financial planners can measure this by using a questionnaire with different market scenarios. They understand your investing style by how you perceive the situation and they give you…

LITECOIN – LONG-TERM PRICE PREDICTION

Crypto Broker Guides

Litecoin Price Performance: A Historical Overview In order for the investor to understand the potential price performance of Litecoin, it is useful to first look at the recent performance of the coin. (At the time of this writing, Litecoin is trading at $55 per coin). Created in 2011, Litecoin traded at just $0.04 per coin…

Is Litecoin a Good Investment & Should I Buy Litecoin Now?

Crypto Broker Guides

A Brief History of Litecoin As with more traditional investments, you should never invest in a cryptocurrency without at least a basic understanding of how it came to be, as this delivers insights as to the crypto’s potential. Charlie Lee developed Litecoin in response to Bitcoin as a way to overcome some of the inherent…

How to Buy Litecoin in UK?

Crypto Broker Guides

Why Would You Want to Buy Litecoin? There are many reasons to get into Litecoin investment, including: Its relatively low price compared to other cryptocurrencies. At the time of writing, one Litecoin was only valued at £77.07, compared to £5,066.26 for each Bitcoin. As such, the barrier of entry to Litecoin investment is much more…

What is Litecoin?

Crypto Broker Guides

What is Litecoin? Unlike Bitcoin whose creator was shrouded in mystery after they used the tag of Satoshi Nakamoto, Charlie Lee is the creator of Litecoin and he is extremely active across the internet, whether it is through his blog or on social media. He previously had worked for Google and had the idea of…

crypto trading

Ripple vs Ethereum

Crypto Broker Guides

Essence and History of Ripple Ripple is currently the third largest cryptocurrency by market cap ($10.1bn, according to Coinmarketcap). Ripple can actually refer to a number of things. First, many confuse Ripple (the company) with Ripple (XRP, the cryptocurrency). These are two different creations. Ripple is a real-time gross settlement system or RTGS, a remittance…

Bitcoin Cash vs Bitcoin

Crypto Broker Guides

What is Bitcoin? As the first cryptocurrency, Bitcoin has seen it all. Since the days of 2009 when the whitepaper was first released, it has gone through massive rises and falls in price. The cryptocurrency market is well-known for its volatility and this has led to many people making and losing fortunes over the years…

Bitcoin vs Ripple

Crypto Broker Guides

What is Bitcoin and how does it work? Bitcoin is the very first cryptocurrency to be created, having first come to light in 2009 after being created by an anonymous person/group using the moniker Satoshi Nakamoto. The main goal of Bitcoin is to disrupt the way money is currently transferred across the globe. It wants…

Bitcoin vs Ethereum: What Is the Difference?

Crypto Broker Guides

What Is Bitcoin? Before understanding the differences between Bitcoin and Ethereum, you must know what each entails. So, what is Bitcoin? Bitcoin is a cryptocurrency; that means that it is a medium of exchange that is encrypted and nearly impossible to trace. Transactions made through this coin are anonymous except for the origin and destination…

How To Buy Ethereum In UK

Crypto Broker Guides

Why should you buy Ethereum? Ethereum has been one of the best cryptocurrency investments so far, and its consolidation as the second most important digital currency in the market has been very clear. The functionalities and useful features of Ethereum exceed Bitcoin. Its network of smart contracts allows virtually any application to be built and,…

Ethereum Price Predictions 2018-2020 – Will Ethereum Go Up?

Crypto Broker Guides

What Exactly is Ethereum? Ethereum is a blockchain network designed to operate like a giant decentralised cloud computer. It is an enhancement of the Bitcoin blockchain which allows scripts known as smart contracts to automatically be executed when prescribed conditions are met. The Ethereum network is designed so that decentralised autonomous organizations, or DAOs as…

What is Ethereum & How Does It Work

Crypto Broker Guides

The (De)Centralized Internet The internet, as we know it today, is a centralized platform based on the server-client model. This means, all data such as websites, videos, music, articles, software and even passwords are stored on servers which are usually operated by third-party companies. Naturally, this centralized concept doesn’t reflect the idea of a free…

guide crypto market 3

What is Dash Cryptocurrency?

Crypto Broker Guides

What Exactly is Dash? Dash is a privacy coin. That means the address of the sender and a receiver in a Dash transaction can be masked. It is more fully described as an open sourced, privacy-centric digital currency with instant transactions. In other words, while the blockchain is public and open source, its primary concern…

guide crypto market 3

How to Buy Bitcoin Cash

Crypto Broker Guides

What exactly is Bitcoin Cash? The main reason for the creation of Bitcoin Cash was because a lot of people were not happy with the segregated witness (SegWit) feature that was placed into the original Bitcoin code back in the middle of 2017. As a result, Bitcoin Cash (BCH) was developed and became the first…

guide crypto market 3

How to Buy Bitcoin Cash in UK – We Explain How to Invest 2020

Crypto Broker Guides

Why You Should Consider Investing in Bitcoin Cash Bitcoin Cash is the fourth largest cryptocurrency by market capitalization. That means it is already well known by investors around the world – which is a big advantage in a market with hundreds, if not thousands of alternatives to choose from. While Bitcoin Cash is very similar…

guide crypto market 3

Bitcoin Cash Price Predictions

Crypto Broker Guides

Background Bitcoin Cash was created through a hard fork from Bitcoin in August 2017. During this time, the cryptocurrency market was gathering speed and the industry experienced an unprecedented boom in 2017. However, in January 2018, the Great Crypto Crash occurred, during which alt coins and Bitcoin lost 80% of their value in under 30…

guide crypto market 3

What is Bitcoin Cash & How Does It Work in 2020

Crypto Broker Guides

What is Bitcoin Cash & How Does It Work The question that people will ask about Bitcoin Cash is how it is different to Bitcoin. There was a lot of controversy regarding the hard fork that took place in August 2017 to create Bitcoin Cash, with a lot of this debate ongoing. The main reason…

guide crypto market 3

Ripple – Where to Trade In UK?: Exchanges For UK Investors 2020

Crypto Broker Guides

Ripple – Where to Sell / Buy in UK? When it comes to Ripple – where to sell / buy in UK, while some exchanges permit trading straight away, others insist on a KYC. The latter is preferable, even though it is time consuming because increased security is very important while trading Ripple. Most cryptocurrency…

guide crypto market 3

What is Ripple & How Does It Work?

Crypto Broker Guides

Essence and History of Ripple Ripple is a real-time gross settlement system (RTGS) and currency exchange, which is managed by a network of servers that validate and compare all transactions. Unlike bitcoin which uses a proof-of-work model that requires high computing power and energy, the Ripple platform has very low energy needs. The servers that…

guide crypto market 3

Bitcoin Predictions 2020

Crypto Broker Guides

Short History of Bitcoin In order to better understand the future performance of Bitcoin, it is important to look at the cryptocurrency’s history and the goal with which it was created. On October 31st 2008, Satoshi Nakamoto published the white paper for Bitcoin. Bitcoin is considered the first digital currency and the largest one by…

guide crypto market 3

What is Bitcoin & How Does It Work?

Crypto Broker Guides

Bitcoin Basics: How Does Bitcoin Work? Essentially, every Bitcoin is a digital file which is located on the blockchain and is stored in in a digitally created program known as a digital wallet. To understand this point, picture what is obtainable in the real world with fiat currencies. Fiat currencies exist as notes and coins,…

guide crypto market 3

Buy Cryptocurrency – How to Buy Bitcoin in the UK 2020

Crypto Broker Guides

Bitcoin – What is it? Bitcoin is the world’s first decentralized digital currency, invented by an anonymous software developer called Satoshi Nakamoto. It was first published as open-source software in 2009. Working as a peer-to-peer network, Bitcoin allows its users to send payments without any supervision from central banks or organizations. That’s also the Bitcoin…

eToro Experience

eToro App – Trade Anywhere at Any Time

Social Trading Guides

eToro App When traders sign up with eToro, they can get access to a free eToro trading app that can be tailored to their trading requirements, enabling the optimisation of the user experience. The app allows traders the freedom to trade wherever they are, either by using wireless connectivity or a data package that’s part…

eToro Experience

Cut your losses: How to Close and eToro account

Forex Guides

Why Choose Social Trading? Before we go through how to close an eToro account, let’s look at why social trading has attracted millions of clients in a few short years. eToro owes its major success to its CopyTrader technology, which allows you to automatically mirror the trading activity and portfolio of another. The theory is…

Fidelity experiences

A guide to Fidelity charges

Stocks Guides

The Product Range As is increasingly common across the industry, Fidelity charges the same fees on most of its investment products. So, if you decide to opt for Fidelity as your investment provider, you’ll be able to make your decisions based on what product suits your needs rather than on the price. Fidelity offers a…

Trading

HOW TO BUY SHARES – LEARN HOW TO GET INTO ONLINE STOCK TRADING

Stocks Guides

CONFIRM BUYING SHARES IS RIGHT FOR YOU If you are not willing to dedicate a great deal of time to research potential profits before making trades stock trading might not be for you. It is easy to lose money by investing in shares. With time and effort, however, you can not only learn how to…

guide trading platform

WHAT ARE THE LOW RISK OPTIONS FOR AN INVESTOR

Stocks Guides

Types of Investment Risks The most common mistake made by investors, is that they tend to assume that a given investment is either risky or safe. However, the diversity in the investment available today cannot be classified so simply. The different types and levels of investment risks include: Market risk: this is the risk that…

ETX Capital Experience

What ETX Capital MT4 has to offer the new and experienced trader

Spread Betting Guides

Advantages to those new to trading on MT4 On its website, ETX Capital provides a number of advantages to inexperienced metatraders setting up an ETX Capital MT4 account. It draws attention to its education programme with free webinars and technical analysis tools, as well as the support offered by the customer service team in London.…

guide etf 3

What are Exchange Traded Funds (ETFs)

ETF Guides

How to trade ETFs ETFs are a quick and easy way for an investor to get involved in the financial markets without having to make too many complex decisions themselves. Once they have decided what ETF they want to invest in, the rest is out of their hands until they decide to sell their position…

guide stocks 3

Day Trading with Penny Stocks – Learn How to Do it Right

Stocks Guides

Are you a good fit to learn to day trade penny stocks? While a lot of people think that day trading with penny stocks is easy, if you haven’t put in the groundwork and set up a strong foundation for yourself, you will be fighting a losing battle. Very often new day traders will throw…

guide social trading 3

What is the Best Time to Buy & Sell Stocks?

Stocks Guides

Right Time of the Day For Buying and Selling Stocks Market volumes plus prices go to the extremes, first thing in the morning. Opening hours are a window when market factors of all fresh releases since previous closing time contribute to volatility. Skilled traders can recognise certain patterns and make quick profits during this period.…

guide etf 3

BEST PERFORMING ETF WITH DIVIDENDS FOR YOUR PORTFOLIO

ETF Guides

DIVIDEND-WEIGHTED ETFS AND YOUR INVESTMENT PORTFOLIO Not all dividend-paying companies are an equally lucrative proposition, on account of differences in cash-flows and approach. While mature firms with large cash flows may offer a stable, conservative approach to dividend pay-outs, growth-oriented firms are another story. The latter have aggressive expansion plans and therefore might change their…

guide trading

What is a Robo Advisor and Should I use One?

Robo Advisor Guides

Precision in Automation: Why Robo Advisors Rule If expensive Wall Street advisors offer a raw deal and no real value, it’s time to opt for robo advisors. While no investment strategy is perfect, a robo advisor can cut through the jargon and get you results. Though some FIAs can add a lot of value, guidance…

Erfahrungen

Free Stock Screeners Apps & Tools 2020

Stocks Guides

Free Stock Screener Apps: Play the Markets Without Paying When noted investor Warren Buffet started trading in 1951, he sifted through 20 thousand pages of Moody’s Manuals for undervalued stocks. Now, a stock screener app does all the hard work for us. Through the click of a mouse, shares that are worth trading can be…

Trading

What is a Stop Loss Order?

Stocks Guides

What is a Stop-Loss Order? A stop-loss order automatically closes your position at the pre-specified price if a trade moves against your expectations. It’s one of the major building blocks of risk and money management, as it helps with protecting your capital, calculating risk-per-trade and reward-to-risk ratios, as well as opening trades with the correct…

guide stocks 3

All You Need to Know » Limit Orders

Stocks Guides

What is a Limit Order? A limit order is a type of a pending order which doesn’t get executed (which is triggered or completed) until certain pre-specified conditions are met. The most usual condition that a limit order needs to meet is the price. In this case, a limit order remains a pending order until…

Beitragsbilder Ratgeber ETF

Short Selling Stocks, a Trading Guide

Stocks Guides

Introduction to Short Selling Public listed companies can have millions of stocks and shares, which are owned by various stakeholders, including mutual funds, hedge funds, pension companies, investment banks, company executives and employees, plus individual investors. By definition, all shareholders believe in the medium to longer term prospects of the company, for a rising price…

guide trading

What Is Margin Trading?

Stocks Guides

Margin Explained Buying on margin helps you control a significantly larger position size than your initial trading account would normally allow. In essence, your broker lends you the needed funds to get a larger exposure in the market and puts a part of trading account aside as the collateral for the loan. The part of…

guide fees

Asset Allocation Models for Your Portfolio

Stocks Guides

What Are Asset Allocation Models? Asset allocation refers to the practice of dividing investment funds among different asset classes, such as bonds, stocks, commodities, currencies, real estate, mutual funds, hedge funds, venture capital funds, cash and cash equivalents. For institutional investors the asset allocation is the starting point of the investment process with pension funds…

guide forex 1

What is Forex Trading and How Does it Work?

Forex Guides

What is Forex? Forex is the largest financial market in the world, with an estimated daily turnover of around $5 trillion according to the BIS Triennial Survey. This is $5,000 billion in a single day! By size, the Forex market dwarfs all other financial markets – even the stock and bond market combined don’t come…

Beitragsbilder Ratgeber Aktien

What are Futures in Trading? – Futures Contracts Explained 2020

Stocks Guides

Futures Contracts Explained Futures contracts are traded by long-term as well as day traders and those with an interest in underlying commodities. Both the buyer and seller of the contract are obliged to fill the requirements towards the close of the contract term. While day traders are also trading in futures, they do not hold…

guide etf 2

What Are ETFs and How Do ETFs Work?

ETF Guides

What Are ETFs? An ETF is a fund that owns underlying assets and divides ownership of these into shares. Assets can range across stocks shares, bonds, gold bars, forex and oil futures, to name just a few. The real investment vehicle structure for an ETF varies across the world, and multiple structures can exist together.…

Trading

Buyback of Shares – How Does It Work?

Stocks Guides

Why Try Share Buybacks? When it comes to buyback of shares – how does it work? The buyback of shares takes place when a company returns wealth to its investors or shareholders. There are numerous reasons why companies repurchase their own shares. Apart from an alternative to paying dividends to stockholders, share buybacks also restructure…

guide trading

Price Earnings Ratio – What is a Good P/E Ratio?

Stocks Guides

Growth Versus Value Debate Much like the entire business, the value of the stock is linked to the ability of the company to generate cash. A low P/E ratio of stocks suggests a value orientation. The P/E ratio also indicates market expectations regarding future stock performance. Higher P/E ratios suggest more growth expectations for the…

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Futures Trading: How to Guide

Stocks Guides

What are Futures? They Are the Most Liquid Instrument Around Before learning how to trade futures it’s worth making sure you know exactly what they are. Futures are a very simple form of derivative that can be traded on almost any market. The first futures markets existed for agricultural products like rice and sugar. Today,…

Beitragsbilder Ratgeber Aktien

How to Trade Options? We Explain Options Trading To You

Options Trading Guides

Options Trading Explained: More Opportunities to Profit For the most part, traders and investors can only make money by buying stocks. Futures allow traders to add short selling and leverage to their trading arsenal. Options add two new tools to the trader’s arsenal. Firstly, traders can limit their risk to a known and fixed amount.…

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How to Trade Forex – Buy & Sell Forex Online in 2020

Forex Guides

Understand the Most Important Terms As with any other type of trading, the very first step in learning how to buy and sell forex is familiarizing yourself with the terminology, so you can read analyses and educational materials. Pips are the smallest change in price that an exchange rate will make. Typical currency pairs have…

Beitragsbilder Ratgeber Trading

What is Day Trading and How Does It Work?

CFD Guides

What is Day Trading? There are four major trading styles to trade on the financial markets – scalping, day trading, swing trading and position trading. All of them have their distinctive advantages and drawbacks, and beginner traders will need to ensure they fully understand the requirements of each different style before choosing the one that…

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Intro to online trading

Online trading technology has developed enormously in recent years; anyone with a computer or smartphone and an Internet connection now has the ability to invest and trade in stocks, bonds, Forex, crypto, ETFs, and derivatives. Of course, you need some money to seed your account — money you can afford to lose, especially if you plan to trade (higher risk) instead of investing.

When you have selected a broker (don’t forget to check our broker comparisons when you’re ready to open an account), you’ll be able to open a demo account. That’s an absolute must for novice traders; you can learn how to enter orders, follow prices in real time, and test out your trading strategy (more on that later).

The difference between trading and investing

A lot of newcomers to online trading get confused about trading and investing. Both aim to profit off price movements in the financial markets, but the approach is completely different. Perhaps the most significant difference is that investors typically only make money from upward price movements, while traders will also short an asset and capture profit from a downward price trend.

Traders look for short-term profits. They may enter and exit multiple trades a day — even multiple trades a minute! Traders rarely hang on to an asset for more than a few weeks or months. They rely on technical analysis (read about top technical strategies in our Trading Strategies section) to time their trades.

Investors, on the other hand, are in it for the long term. Investors choose assets based on a combination of fundamental and technical analysis and look for those that will grow steadily over time. Investors are typically more risk-averse than traders. If you’re investing to reach long-term goals such as retirement savings, you’re better off with buy-and-hold assets such as stocks and bonds.

What type of trader are you?

Since this guide is for online traders, the focus is on trading styles as opposed to investing styles (but if you’re interested in investments, check our AskTraders trading guide library for in-depth investing information).

There are four main types of trading styles:

  • Position trading. This is the trading style that most closely resembles investing, since position traders may hold a position for months. Position traders capture profit over a broad upward or downward trend and are less concerned with smaller daily price movements.
  • Swing trading. Swing traders hold positions for a period of days or weeks and use technical analysis to set entry and exit points for trades. This type of trading doesn’t require you to constantly monitor your trades, so it appeals to people who also work at a regular job during the day.
  • Day trading. Day traders don’t hold positions overnight; trades are opened and closed in a single day. Day traders may only hold a position for a period of minutes or hours, and they look to capture frequent, smaller gains. Most day traders trade on margin, so there’s definitely more risk involved.
  • Scalpers profit off tiny price movements and may make hundreds of trades in a single trading session. This is the riskiest type of trading because profit requires a much higher percentage of winning trades since the gains are so small. One or two losses could easily wipe out the profit from 10 or 20 winning trades. Most scalpers trade using leverage.

Looking at the four trading styles above, the level of risk increases as you move from position trading to scalping. When you decide to move from a demo account to a live account, be sure not to fund it with money that you need to meet your living expenses.

Avoid these novice mistakes… please

All traders make mistakes, even the most experienced ones; however, there are some missteps taken by novices that can be downright dangerous to their financial health. Do yourself a favour and familiarise yourself with the common mistakes so that you recognise them when you’re tempted to make them.

  1. Overestimating your abilities. You made a few good trades in your demo account so now you think you’re an expert. Beginner’s luck is not a sound trading strategy. Always do your homework and follow your trading plan every single time.
  2. Not following your trading plan. You don’t have one, you say? Then you’re relying on beginner’s luck. Before you go live, know how much you’ll trade, your entry and exit points, and your maximum acceptable loss.
  3. Not setting stops. Tight stops prevent big losses, and experienced traders use them. A variation of this mistake is cancelling a stop on a losing trade because you know in your gut it will turn around soon.
  4. Going overboard with leverage. New traders see margin as free money and common sense then goes out the window. Don’t use margin at all for the first six months or more until you’ve mastered your trading strategy and are winning more than you’re losing. (Need a new trading strategy? Check our Strategy section for tips).
  5. Flitting from market to market. Experienced traders become experts in their markets. You rarely find top traders jumping from stocks to Forex to crypto — pick one and get to know it well. You’ll be much more successful if you stick to one financial market.

Remember, you can always check our trading guides for help and advice, and if you still can’t find what you’re looking for, log into your AskTraders account and ask the Q&A community.

Ratgeberbilder Artikel Boerse

A word about our Trading Guides

When people talk about online trading, they are talking about a lot of different things. You’ll see terms like pips and spreads and Forex and derivatives and margin calls and breakouts… you get the idea.

And while some terms apply to all kinds of trading, others are specific to their market. It can become overwhelming when you’re trying to learn how to master a new skill.

That’s why AskTraders created a section devoted to in-depth guides taking you deep into every aspect of online trading. There’s information on tax issues, fees, and technological differences in the top trading platforms. You don’t need to muddle through on your own when you see something you don’t understand — turn to the trading guides.

Don’t forget Trading Strategies

While the trading guides give you all the basics for entering the world of online trading, the Trading Strategies section gets into the nitty-gritty of finding your own formula for winning trades.

Learn about technical analysis, charting, patterns, and how to develop a trading plan that accomplishes your goals. This is where to go when you’ve chosen your market, identified your style, selected a broker, and opened your demo account — when you’re actually ready to start developing and testing trading strategies.

And as always, AskTraders' Q&A community is there to answer your questions.

Plan to achieve your trading goals

What do you want to do as an online trader? Earn a little extra income? Replace the income from a full-time job? Create a financial cushion and then get out of the market?

You need to know what you want to accomplish before you create your plan.

What’s your trading timeline? Financial advisors help investors map out a strategy based on when they need access to their money; the same is true for traders.

Finally, know what you have for seed capital. Investors make regular deposits into their brokerage and use dollar cost averaging to buy stocks or ETFs on a periodic basis. Traders need seed money – a chunk of money they don’t need for other expenses or long-term goals – money they can afford to risk without harming their financial future.

Ratgeberbilder Artikel Trading-Apps

Practice makes perfect — use your demo account

In the old days, newbies to the market had to use paper trading to perfect their trading strategies. Today, demo accounts simulate the actual experience on a trading platform. It’s almost a necessity if you want to be successful when you go live.

Work out your trading plan, experiment with different trading strategies, and get comfortable with the platform before you go live. But do keep in mind — you may be in for a few shocks once you switch to a live account:

  • Demo accounts give you a lot more capital than you’ll probably be trading with in real life, at least at first. That simulated big balance is a great safety net that goes away when you’re trading with your own money. It can be hard to overcome that psychological barrier.
  • Execution is faster with demo accounts, so if you’re day trading or scalping, you may hit a string of losing trades at first because you’re accustomed to the speedier execution.
  • The emotional investment you have with your own money is missing with a demo account. In other words, it’s easier to stick to your plan with a demo account when greed and fear don’t feature in the experience.

Which market is right for you?

Choosing your market depends on many things: Your trading style, seed capital, and even the hours you’re available to trade. Here’s a quick look at the main markets to help focus your research. Remember, you can get detailed information about all the markets and instruments in the AskTraders trading guides:

  • Stock market. You can buy and short equities on exchanges all over the world. This is probably the most widely known and studied market.
  • ETF market. This is a variation on the stock market. These are funds that trade like shares and are suitable for trading or investing.
  • Options market. Options are derivatives, which means you don’t actually own the underlying asset. Options can be pegged to many different instruments—stocks, commodities, Forex, futures, and crypto.
  • CFD market. This is a hybrid derivative that enables traders to make money on price movements of an underlying asset.
  • Forex market. This is the largest financial market in the world. You are trading on price movements in a currency pair. Forex is always traded in pairs.
  • Crypto market. Crypto is a high-risk digital currency that has no intrinsic value. It’s not pegged to gold or other commodities and it is not recognised as legal tender.

Day traders favour Forex and CFDs because of the high leverage and low account minimums. ETFs are another popular target with day traders and even scalpers. Long-term investors tend to stick with stocks and ETFs.

Trading is a skill

Although outsiders view the market as a mixture of magic and myth, the truth is that trading is a skill that anyone can learn. The way to succeed is to treat it like a profession, even if you’re only trading on the side.

Start with the basics:

  • Price movement and the difference between the bid and ask prices (spreads)
  • Different order types and when to use them
  • How to manage your risk
  • When you can trade the different exchanges

From there, move into “advanced basics,” which are the building blocks to a trading strategy that works for you. Here’s where you dive into technical analysis, charting skills, and how to match a trading method to your own personality type and objectives.

Again, AskTraders' trading guides and trading strategies are there to help you find your way—but don’t be afraid to buy books, sign up for webinars, or even have a one-on-one with a professional trader.

When you move into your demo account, keep one thing in mind – you don’t need to win every trade to have a successful career as a trader. Losses are part of the job — just make sure you’re using stops to keep them from being catastrophic.

Finding the right broker

If you haven’t figured it out by now, your choice of a broker is the single most important decision you’ll make when you become an online trader.

Why? Let’s start with the trading technology itself. If the order entry process is cumbersome or the execution is slow, you’ll have a very hard time carrying out a disciplined trading plan. And if you can’t trade on the devices you use the most, it’s not going to be a productive relationship.

Then let’s look at fees. A scalper or day trader needs low commissions given the huge number of trades being executed. Forex and CFD traders need tight spreads, and all serious traders need access to research and charting tools. If your broker doesn’t offer reasonable rates for essential extras, your overall rate of return can be less due to high charges.

Finally, support and education are key. If you don’t have a demo account to test out new strategies, or good customer support when something goes wrong, you’re missing out on key components in the trader-broker relationship.

AskTrader broker comparison tool

Don’t leave your broker search to chance. Use the AskTrader broker comparison to help you identify the best brokers in your chosen market — and then compare essential features and fees. You could spend hours on the Internet looking for information yourself, but why would you when AskTraders has already done the work?

1
of 30 Forex Broker HYCM
Currency pairs 69 Currencies
Max. Lever 1:500
Trading size Micro-Lot
Minimum deposit $ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 30 Forex Broker ETFinance
Currency pairs Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit £ 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 30 Forex Broker Tickmill
Currency pairs 60 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 30 Forex Broker ITRADER.com
Currency pairs 50 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit £ 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 30 Forex Broker GMO Trading
Currency pairs 60 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit $ 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 6 ETF Broker IG
ETFs w/ discount 1200
Custody fee 0 GBP
Min. deposit £ 0
Trading from 5 GBP
Go to Broker

74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

2
of 6 ETF Broker Fidelity
ETFs w/ discount 93
Custody fee 0 GBP
Min. deposit £ 2.500
Trading from 25 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 6 ETF Broker AJ Bell Youinvest
ETFs w/ discount 0
Custody fee 0 GBP
Min. deposit £ 0.00
Trading from 1,50 GBP
Go to IG
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 6 ETF Broker Bestinvest
ETFs w/ discount 216
Custody fee 0.4% annually
Min. deposit £ 500
Trading from 0 GBP
Go to IG
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 6 ETF Broker DEGIRO
ETFs w/ discount 740
Custody fee 0 GBP
Min. deposit £ 0
Trading from 1,75 GBP + 0,004%
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 10 Stock Broker eToro
National fees £0.00
Custody fee £0.00
Intl. fees £0.00
Dep. Protection £50000
Go to eToro
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 10 Stock Broker Interactive Investor
National fees £7.99
Custody fee £9.99 monthly
Intl. fees £7.99
Dep. Protection 50000 GBP
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 10 Stock Broker IG Stock
National fees £ 8,00
Custody fee £ 8,00
Intl. fees 10 EUR
Dep. Protection £50000
Go to Broker

74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

4
of 10 Stock Broker Calamatta Cuschieri
National fees £ 7.50
Custody fee £ 0.00
Intl. fees £ 7.50
Dep. Protection 100.000€
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 10 Stock Broker Hargreaves Lansdown
National fees 11,95 £
Custody fee 0,00 £
Intl. fees 11,95 £
Dep. Protection 50.000 £
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 29 CFD Broker HYCM
FTSE spread 20 Points
Dep. Protection £ 50.000
Max. Lever 1:500
Min. deposit $ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 29 CFD Broker ETFinance
FTSE spread 1 Point
Dep. Protection € 20.000
Max. Lever 1:30
Min. deposit $/€/£ 0
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 29 CFD Broker Tickmill
FTSE spread 1.0 Point
Dep. Protection £ 50000
Max. Lever 1:30
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 29 CFD Broker ITRADER
FTSE spread 1 Point
Dep. Protection € 20.000
Max. Lever 1:30
Min. deposit £ 250
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 29 CFD Broker GMO Trading
FTSE spread 1 Point
Dep. Protection € 20.000
Max. Lever 1:30
Min. deposit $ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 18 Crypto Broker eToro
Crypto currencies 17
Max. Lever 1:2
Min. deposit $ 200
BTC spread 0,75%
Go to eToro
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 18 Crypto Broker ETFinance
Crypto currencies 5
Max. Lever 1:2
Min. deposit £ 250
BTC spread 1%
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 18 Crypto Broker NAGA
Crypto currencies 12
Max. Lever 1:2
Min. deposit £ 0
BTC spread 55.1
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 18 Crypto Broker ITRADER
Crypto currencies 33
Max. Lever 1:2
Min. deposit £ 250
BTC spread Floating
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 18 Crypto Broker GMO Trading
Crypto currencies 33
Max. Lever 1:2
Min. deposit $ 100
BTC spread varied
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 8 Social Trading Broker NAGA
Underlying assets 726
Dep. Protection 20000
Min. deposit £ 0
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 8 Social Trading Broker eToro
Underlying assets 866
Dep. Protection 50.000
Min. deposit £ 200
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 8 Social Trading Broker ZuluTrade
Underlying assets 200
Dep. Protection
Min. deposit £ 0
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 8 Social Trading Broker Ayondo
Underlying assets 90
Dep. Protection 1000000
Min. deposit £ 2000
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 8 Social Trading Broker Tradeo
Underlying assets 122
Dep. Protection 20000
Min. deposit £ 250
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
1
of 9 Spread Betting Broker City Index
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:20
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 9 Spread Betting Broker FX Pro
FTSE spread 1.5 Points
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 100
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
3
of 9 Spread Betting Broker IG
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 0
Go to Broker

74% of retail investor accounts lose money when trading spread bets and CFDs with this provider. You should consider whether you understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money. Professional clients can lose more than they deposit. All trading involves risk.

4
of 9 Spread Betting Broker Core Spreads
FTSE spread 0.8 Points
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 10
Go to IG
Risk warning: Capital can be lost. Terms and conditions apply.
5
of 9 Spread Betting Broker OANDA
FTSE spread 1 Point
Dep. Protection 50000
Max. Lever 1:30
Min. deposit £ 0
Go to broker
Risk warning: Capital can be lost. Terms and conditions apply.

Community is key

Connecting with like-minded traders enriches your trader education and keeps you on track to meet your goals. Just as you need mentors and friends in your nine-to-five professional life, you also need mentors and friends to help you succeed in your trading career.

Online trading is a unique ecosystem with its own language, maxims, and conventional wisdom. When you’re on the outside looking in, it seems incomprehensible. All traders — novice and experienced alike — benefit from a supportive community of traders to share their experience and help sharpen their strategy.

The AskTraders community serves its purpose as a guide, mentor, teacher, and friend. Whether you’re into forex or crypto, scalping or swing trading, you’ll find someone in the community to share your experience.

Conclusion:

The AskTraders advantage

AskTraders has all the latest news, information and expert opinions and we can assist even experienced traders to be more successful. Whether you’re looking for information about a financial market (check our trading guides) or how to choose the right broker (our Broker Comparison makes it easy to choose the right broker for you), you’ll find everything you need at AskTraders.

And we don’t abandon you once you choose a market and a broker — we’re here every step of the way. Need help developing a solid trading strategy? Our Trading Strategy library is packed with information to help you make winning trades.

Once you’re dialed into a market and have set a strategy, our News section keeps you up to date on what’s happening in the financial world and how it might affect your trades.

Never underestimate the power of community. The AskTraders community includes professional traders, financial experts, and people who know the markets inside and out. Browse our articles, written by pros who make their living trading online, for tips on how to succeed as a trader.

And if you can’t find what you need, our active Q&A community is there to help. Ask questions when you’re starting out — and share your own knowledge and experience as you progress through your trading career.

Online trading can help you achieve your financial goals if you follow a carefully constructed plan. AskTraders is here to help you every step of the way.