So, you are a beginner to stock and forex trading and wonder how to buy stocks and trade forex from your home. I’ll save you time and share what I have found searching online the last months before I finally began trading online US stocks and forex. Because there are a lot of issues to discuss, I’m going to post a series of articles in the next days, each addressing a different aspect of trading. In the end you will be able to setup you trading account with an online stock broker and paper trade your online forex trading system.
Buying stocks and currency trading may seem attractive and something to brag about among friends, but you must be sure you have the discipline to handle variance, drawdown and loss of money. As you have most probably heard, you should always trade with spare money, money you won’t need to pay bills and your family won’t miss. At first, before even depositing any real money, the best investment advice anyone can give is to paper trade your trading system. Don’t get arrogant and think you will make it from the beginning. Perhaps you get lucky and never look back, but we are talking about a very small percentage of online traders and I guess they already had some experience from some other field of gambling.
Gambling you say? What does forex trading have anything to do with gambling? Well, online trading is a form of gambling, you do gamble your money on a price movement prediction. When you buy a stock or sell it, you make a prediction that the stock will either climb or fall respectively. If your prediction is correct you make money, if you are wrong, you lose money. It’s that simple. In fact consider any trade you make a bet. You are betting against other traders who are betting their own money on stock prices’ movement. You are competing each other about who will make the best predictions. Try to make your best stock market analysis before you decide to buy stocks. Try to find your edge in technical analysis before you risk money in forex trading.
Now that we have said a few words about the basic concept behind trading I will talk about the first steps one needs to take, so that he can trade forex and stocks right from his office at home. I won’t be discussing how you can make money trading from your home, that is another story. The point of these articles is to get you familiar with how a stock broker works, how to setup a trading account, how to make deposits and withdrawals, how to compare commission among stock markets and any other question a beginner in online stock trading may have.