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Trading 101: The 2019 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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Bitcoin

How to Buy Bitcoin on IG

Crypto Broker Guides

1. Bitcoin Trading Offer The first decision you will have to make when it comes to making decisions about Bitcoin is what sort of Bitcoin product you want to go for. Bitcoin spread bet is the first choice: this allows you to speculate on the potential rise (as well as decline) of Bitcoin prices simply…

bitcoin

How to Buy Bitcoin on Swissquote

Crypto Broker Guides

1. Bitcoin Trading Offer Swissquote offers an accessible and easy way to purchase Bitcoins, and many people already use the site to access this most popular of cryptocurrencies. In terms of the currencies accepted, Bitcoin can be purchased on Swissquote using either euros or US dollars. The currency of Switzerland, the Swiss franc, is not…

Bitcoin

How to Buy Bitcoin on GKFX

Crypto Broker Guides

1. Bitcoin Trading Offer For those who want a smooth, efficient and user-friendly Bitcoin trading experience, GKFX is a great broker to opt for. Its Bitcoin trading offer is diverse, and it allows you to trade this cryptocurrency in conjunction with a range of fiat currencies. There are two distinctive types of Bitcoin trading account…

Bitcoin

How to Buy Bitcoin on 24option

Crypto Broker Guides

1. Bitcoin Trading Offer The main Bitcoin trading page for 24option is unusual in that it devotes a lot of space to describing the history of the cryptocurrency rather than its own offer. For many traders, this information is probably already known, but for those who need some additional context, it will be welcome. The…

How to Buy Bitcoin on ATFX

Crypto Broker Guides

1. Bitcoin Trading Offer ATFX is one of the leading providers of Bitcoin contracts for difference, and it offers a wide range of services which are held in high regard by those choosing Bitcoin products. However, it does not offer a straightforward Bitcoin product. The first thing to note is that buying such a product…

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 Plus500

Crypto Broker Guides

1. Bitcoin Trading Offer Buying Bitcoin on Plus500 is a relatively simple endeavour, and one that most traders, whether new or experienced, should be able to achieve in a short space of time. Plus500 sells Bitcoin contracts for difference (CFDs). This means that you are not actually purchasing Bitcoin, but that you are purchasing an…

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).…

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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

Investing in Bitcoin – The complete beginner’s guide

Crypto Broker Guides

Bitcoin basics Bitcoin has been in operation since 2009 and can now be easily bought, sold and traded against other currencies. Most traders use online cryptocurrency exchanges or brokerages to invest in Bitcoin. It is also possible to create new Bitcoins via a process known as Bitcoin mining. Bitcoin is a truly virtual currency. Your…

Crypto Exchange

Best crypto exchanges for beginners 2019

Crypto Broker Guides

What is a crypto exchange? One of the most popular ways to invest in cryptocurrencies is via an online exchange where you will use real money to buy various digital currencies and sell them when necessary. Crypto exchanges are a convenient way to buy and sell a range of cryptocurrencies (also known as digital currencies…

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

Crypto Broker 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.…

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Cryptocurrency ETF – How to start trading in cryptocurrencies in 2019

Crypto Broker Guides

What is an ETF? An ETF involves trading a collection of assets, what is often referred to as a basket. It is traded on the stock market in the same way as ordinary stocks and shares. The basket might track the performance of a specific commodity or index, such as crude oil or the Dow…

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Bitcoin ETF strategies that work – All the trading practices that you should know in 2019

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…

Litecoin Cash Price Chart Live – Litecoin Cash to GBP & USD

Crypto Broker Guides

A Quick Look at Litecoin Cash History and Historic Prices Litecoin Cash is what is known as a hard fork in the cryptocurrency world, branching off from Litecoin. The fork occurred in February 2018, and during this time, those who wanted to participate placed their Litecoin in a specific wallet. They then received 10 LCC…

bitcoin

Bitcoin Cash Price Chart Live – Bitcoin Cash to GBP & USD

Crypto Broker Guides

A Quick Refresher on the History of Bitcoin Cash Bitcoin Cash does more than just share part of its name with the crypto-leader Bitcoin; it resulted from a hard fork. This hard fork took place relatively recently in the world of cryptocurrency, occurring on Aug. 1, 2017. As it was a hard fork, those who…

A Closer Look at Ripples Recent Price Downturn 2019

Crypto Broker Guides

A Steep Price Decline One look at a Ripple chart price live Ripple to GBP and USD will show you that Ripple hit its all-time high price in early January, 2018. This came right after the cryptocurrency market at large experienced euphoria when the CBOE and the CME launched Bitcoin futures. However, after the dramatic…

Ethereum Price Chart Live – Ethereum to GBP & USD

Crypto Broker Guides

Understanding What a Line Price Chart Tells You & Popular Charts The simplest price charts you will find for Ethereum to GBP and USD are line charts, and these typically display the closing price for Ethereum over a period of time. However, they can also show other figures, such as the high or opening price,…

Bitcoin Chart Price Live – Bitcoin to GBP & USD

Crypto Broker Guides

The Basics of Reading a Bitcoin Price Chart: Line vs. Candlestick Charts Before you start looking at price charts for Bitcoin, take a few minutes to understand what they display. There are two main types of charts, lines and candlesticks. In either case, you should be able to adjust the time frame displayed, so if…

WHAT NEXT FOR LITECOIN? LONG TERM PRICE FORECAST

Crypto Broker Guides

LITECOIN PRICE PERFORMANCE: A HISTORICAL COMPARISON To get a better handle on where Litecoin is headed in late 2019 and beyond, it helps to have a look at the recent past. (Note: at the time of writing LTC was trading in the $100-105 range.) Created in late 2011, LTC’s first recorded listing as a dollar…

Where to Buy Litecoin in UK?

Crypto Broker Guides

Reasons to Buy Litecoin in the UK If you are looking into where to buy Litecoin in UK, you probably already have a good reason for wanting to purchase this cryptocurrency. In case you are still on the fence or need more motivation, go back to the fact that Litecoin is quicker than Bitcoin. Litecoin…

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

What is Ripple? Ripple is currently the 3rd largest cryptocurrency in terms of market cap. It acts as both a digital payment network with a specialisation in financial transactions as a digital currency. It has been around since 2012 when it was created by Ripple Labs. Its cryptocurrency is called XRP and it plays a…

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 With Credit Or Debit Card in 2019

Crypto Broker Guides

What does Ethereum have to offer? The main reason to invest in this digital currency is its recognition and the use of it worldwide, since it is the second largest capitalization cryptocurrency after the well-known Bitcoin. Because it is a system of digital currencies it is a new and innovative system. Buying cryptocurrencies has its…

How to Buy Ethereum with PayPal 2019

Crypto Broker Guides

How does PayPal work? Many users, when making their payments via the web, will have found the Paypal logo next to the credit cards. What is Paypal? PayPal is a secure payment platform so you have to enter your banking information in each online store where you want to buy. Some time ago, there was…

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,…

Buy/sell Ethereum in UK – Where to trade Ethereum? 2019

Crypto Broker Guides

Best Sites to Sell / Buy Ethereum When it comes to finding the best place to sell / buy Ethereum, things are not so easy, simply because many of the best sites to sell /buy Ethereum online are quite recent. Most people will wonder how to sell /buy Ethereum online safely. Well, here you have…

Is Ethereum A Good Investment And Should You Buy Now?

Crypto Broker Guides

The Ethereum Project: A New Blockchain Before even considering whether or not is Ethereum a good investment, you need to know what it is. Notice that it says “Ethereum project” instead of “coin”. That is because the term “Ethereum” refers to a full platform instead of a single currency. Ethereum is a blockchain-based platform that…

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

How to Buy Dash?

Crypto Broker Guides

What Exactly Is Dash? Dash is a cryptocurrency like Bitcoin, but with ability to make transactions private so that the senders address is hidden. It was founded in 2014 by Evan Duffield who believed Bitcoin lacked the privacy needed by cryptocurrencies. Duffield started Dash by copying the code from Bitcoin and making several changes. He…

guide crypto market 3

Dash Price Predictions 2018-2020

Crypto Broker Guides

How Will Crypto Assets Perform Cryptocurrencies had an incredible year in 2017. Since January, most cryptocurrencies have been in a bear market, although they recovered some ground in April. To make any predictions for the market as a whole, you need to look at what drives the market and who is likely to drive the…

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…

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Where to Buy Bitcoin Cash

Crypto Broker Guides

What exactly is Bitcoin Cash? Bitcoin Cash first came about due to people in the community becoming disillusioned with Bitcoin. They felt that this original cryptocurrency was straying away from the values that had been laid out by its creator Satoshi Nakamoto. It had become a lot pricier to make transactions, as well as processing…

guide crypto market 3

How to Buy Bitcoin Cash in UK – We Explain How to Invest 2019

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

What is Bitcoin Cash? Bitcoin Cash has received a decent level of support ever since it was created via hard fork from the Bitcoin network in August 2017. There is a decent community behind the project who truly believe in what they are doing. They feel that Bitcoin has strayed from what its original vision…

guide crypto market 3

What is Bitcoin Cash & How Does It Work in 2019

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

How to Buy Ripple with PayPal in 2019

Crypto Broker Guides

Features – Benefits of Blockchain Technology and Cryptocurrencies Blockchain technology has a massive range of benefits. Cryptocurrencies are utilising this technology in order to operate their own form of digital currency. The original goal of Bitcoin for example was to make transactions a lot faster and much cheaper than traditional forms of payment. There is…

guide crypto market 3

How to Buy Ripple with a Credit/Debit Card in 2019

Crypto Broker Guides

Features – Benefits of Blockchain Technology and Cryptocurrencies Blockchain technology has a massive range of benefits and cryptocurrencies are utilising this technology in order to push forth the adoption of digital currency. The original goal of Bitcoin for example was to make transactions a lot faster and much cheaper than traditional forms of payment. Ripple…

guide crypto market 3

Ripple – Where to Trade In UK?: Exchanges For UK Investors 2019

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

Is Ripple a Good Investment & Should I Buy Now?

Crypto Broker Guides

A Quick Overview of Ripple and XRP Invented in 2004 by Ryan Fugger and introduced in 2012 by Ripple Labs, Ripple is real-time gross settlement system (RTGS), payment protocol and currency exchange that uses a network of independent servers to verify each transaction. It offers an almost instant and cost-free solution for cross-border transfers of…

guide crypto market 3

Ripple Predictions 2018-2020 – Will Ripple Go Up?

Crypto Broker Guides

Ripple Predictions for 2018-2020 Ripple is now pegged at around USD 0.53 while a couple of months back, it was a mere USD 0.2020. Although altcoins are linked to blockchain technology for combating the double spend issue, blockchain primarily functions differently for each virtual currency. Bitcoin uses Proof of Work for block validating, while Dash…

guide crypto market 3

What is Ripple & How Does It Work?

Crypto Broker Guides

What is 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 make up…

guide crypto market 3

Best Ripple Exchange in UK: Crypto Trading at Coindirect 2019

Crypto Broker Guides

Coindirect: UK’s Popular Cryptocurrency Exchange Coindirect supports one of the widest arrays of local-to-cryptocurrency transactions, with as many as 42 altcoins currently being sold on its marketplace. Offering easy access to Ripple, the goal of Coindirect is to simplify and demystify the process of purchasing a wide range of cryptocurrencies. Offering traders a secure environment,…

guide crypto market 3

Best Bitcoin Exchange – The Best Place to Buy Bitcoin In UK

Crypto Broker Guides

CEX.IO: Leading UK Cryptocurrency Exchange In 2015, CEX.IO shot down its mining services and started operating only as a cryptocurrency exchange. The UK based exchange permits users to buy and sell not just Bitcoin, but also Ethereum, Bitcoin Cash, Dash and ZCash with debit and credit cards instantly. This is among the most popular bitcoin…

guide crypto market 3

Bitcoin Predictions 2019– Will Bitcoin Go Up?

Crypto Broker Guides

The Price of Bitcoins: Future Trends and Past Precedents While bitcoin prices have been greatly impacted by government decisions, observers hold that outside factors which impact the adoption of bitcoin dictate the price in the short-term. The performance of the futures market, for example, is set to tilt the price of bitcoins either way. Bitcoin…

guide crypto market 3

How to Open a Bitcoin Account? Your Definitive Guide

Crypto Broker Guides

How a Bitcoin Wallet Works If you’re wondering how to open a bitcoin account, read on. A wallet stores your bitcoin and when you make a transaction, you sign up for business with a private key conferring ownership of coins and the right to carry out the transaction. The blockchain then encodes the bitcoin transmitted…

guide crypto market 3

Where to Sell / Buy Bitcoin in UK? -All Exchanges In Comparison

Crypto Broker Guides

What exactly is a Bitcoin Exchange? A bitcoin exchange is a website which lets you purchase or sell this and other cryptocurrencies. Many exchanges also allow trading in other cryptocurrencies such as Ethereum and Litecoin. As with any other financial investment, or trading decision, buying bitcoin requires an understanding of crypto trading strategies. You also…

guide crypto market 3

Should I Buy a Bitcoin Now & Is It a Good Investment?

Crypto Broker Guides

Is Bitcoin a Bargain Now? Today, Bitcoin is trading at only a fraction of the record-high in December 2017. Have you bought Bitcoins on the 16th December when a single coin traded at around $20,000, you would have lost around two-thirds of your investment by today. Even if you were a buyer just a month…

guide crypto market 3

How to Buy Bitcoin With Credit/Debit Card Instantly in the UK – Trusted Brokers 2019

Crypto Broker Guides

Buy Bitcoin With Credit/Debit Card Instantly in the UK – The General Process As you already know, the most popular way to purchase bitcoin (BTC) in the UK is paying by card. In the past, it used to be hard: Buyers needed to go through a complicated process before they could reach this cryptocurrency. However,…

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

How to Trade Cryptocurrencies 2019

Crypto Broker Guides

Cryptocurrency Assets – What Can You Trade? What crypto assets can you trade? This section explains the various cryptocurrency assets available to you. Tradable assets: The tradable cryptocurrency markets are cryptocurrency CFD trading (which features crypto/fiat pairings), crypto-crypto pairings which are seen on most exchanges, and single asset trading which can be done for the…

guide crypto market 3

What Are Cryptocurrencies & How Do They Work?

Crypto Broker Guides

How Are Cryptocurrencies Obtained? Cryptocurrencies can be obtained from two sources: Mining Acquisitions “Mining” of cryptocurrencies is the primary source by which cryptocurrencies are created. Mining is the use of software to create new blocks of the cryptocurrency through the resolution of complex Mathematical problems that form the cryptograph in the blockchain platform. This is…

guide crypto market 3

How to Buy Bitcoin by PayPal – The Complete Guide 2019

Crypto Broker Guides

PayPal – What is it? PayPal is an online financial service platform that allows the user to pay for commodities using a secure internet account. You just provide your bank account, credit card or debit card information, and in next-time login, you can make up your mind which of your cards or accounts to pays…

guide crypto market 3

Buy Cryptocurrency – How to Buy Bitcoin in the UK 2019

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…

iq option experience

IQ Option fees and how to avoid them

Crypto Broker Guides

What Causes Variation? The basic cost of making trades is a component that all traders need to factor in when choosing who is the best online broker to fit their needs. The good news is that as time progresses, online broker fees are constantly falling, as companies change and rearrange their fee structures. There are…

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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).

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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.

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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.

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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.

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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 29 Forex Broker Pepperstone
Currency pairs 70 Currencies
Max. Lever 1:30
Trading size Mini-Lot
Minimum deposit £ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 29 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.
3
of 29 Forex Broker XM
Currency pairs 55 Currencies
Max. Lever 1:30
Trading size Micro-Lot
Minimum deposit $ 5
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
4
of 29 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 29 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.
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
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 £50.000
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 50.000 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 50,000 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.

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 Pepperstone
FTSE spread 1 Point
Dep. Protection £ 50.000
Max. Lever 1:30
Min. deposit £ 200
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
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.
3
of 29 CFD Broker XM
FTSE spread 1.0 Point
Dep. Protection £ 50.000
Max. Lever 1:30
Min. deposit $ 5
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 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.
1
of 18 Crypto Broker eToro
Crypto currencies 10
Max. Lever 1:2
Min. deposit $ 200
BTC spread 1,50%
Go to eToro
Risk warning: Capital can be lost. Terms and conditions apply.
2
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.
3
of 18 Crypto Broker IQ Option
Crypto currencies 13
Max. Lever 1:1
Min. deposit $ 100
BTC spread 6 percent
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 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.
1
of 7 Social Trading Broker eToro
Underlying assets 866
Dep. Protection 50000
Min. deposit £ 200
Max. Lever 1:30
Go to Broker
Risk warning: Capital can be lost. Terms and conditions apply.
2
of 7 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.
3
of 7 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.
4
of 7 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.
5
of 7 Social Trading Broker FXTM
Underlying assets 247
Dep. Protection 20000
Min. deposit £ 10
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 50.000
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 IG
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.

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