It is truly funny when people lambast online trading and dismiss it as some form of scam or as something totally unreal. However, if we look at the likes of Lex Van Dam, George Soros and others who have made a killing from online trade, then we can actually see that anyone can make money from an online trading investment. The problem has always been the approach and methodology used.
We all need money for everyday existence. Nothing is free. We pay bills of all kinds, and work jobs to be able to pay for the goods and services we consume on a daily basis. It can be a hassle trying to pay bills when cash does not come in as fast as it goes out. People who then resort to financial trading to sort their bills out then find out that when they subject the little funds they have to online trade in such a pressured environment, they soon lose it, and then dismiss it all as a scam.
Online trade is best done in a relaxed environment and without financial pressures using the principle of compounding. You can break out of financial hardships by trading online. This is a personal model I used to first start a trading career, then a small business, which eventually grew over time to the extent of receiving a federal government business grant worth $52,000.
When I first started my online trading journey, it was in the world of stocks. I had gone to several investment seminars and after spending $300 on a particular seminar listening to a stock investment guru who had made a fortune in the market, I took up the gauntlet. I had only $500 to start trading stocks online. I opened a discount stock trading account with a stock brokerage firm and with the tools and information acquired from the seminar, I was able to pick two stocks with which to invest in. One of the stocks did well in three months. I sold it for a profit and continued to compound it, profiting from each trade thanks to the information from the investment seminar. The other stock simply did not do well and was virtually stagnant for three years. I was able to compound the single performing stock for three years, but this is where the story begins.
Then I had to get married, and I used my entire stock investment earnings from the single stock to finance it. After the wedding, I was back to where I had started, with extra mouths to feed. But out of the blues, a combination of a government policy and the purchase of the company in which I had the stagnant stock investment by an overseas investment bank drove the stagnant asset to unbelievable levels. I made 7 times my investment in a space of two months.
With that investment, I was able to start an offline business which is now doing well.
It is not a good idea to trade financial instruments to pay bills within the first few months of starting. This is because most retail traders do not have the financial muscle to withstand market variations. In the financial markets, the more money you have to work with, the more you can make. So if you have a little of it, then there is a need to compound it to levels where a few pips made in online trade can translate to tidy profits.
Investing in a trading account is one of the best things you can do right now. If you have some free funds that you can afford to lose (which is usually not much for many people), then there is a need to compound it first in an investment vehicle which has less risk than its peers. Stocks and binary options are a lot safer than forex or commodity trade. So open an equity account and binary options account. If possible, open both accounts with a single broker. IG Markets is one such broker that offers stocks and binary options investing from one account. With such an equities/options account, the trader can trade stocks and binary options in an alternate fashion. Information about brokers that offer both assets from one account is available from a scan of the search engines.
There are tools that can be used to safely compound a small investment into a larger one. These free tools come in the form of charts and indicators. There are also article resources and videos on Youtube that can deliver nuggets of free information for the trader’s benefit. When the trader’s funds have got to levels where a single trade can pull in hundreds or thousands of dollars, then the trader can truly boast of making a success of his online trading venture.
And where should you start trading? My current recommendation is optionFair: