Online Trading Made Easy: What You Need To Know

This post may contain affiliate links and I may receive a small commission if you make a purchase using these links – at no extra cost for you. Please read my disclaimer here.

Online trading has become a popular way to make money in recent years. With the advent of online trading platforms and mobile apps, it has never been easier to get started in the world of online trading. However, there are still many people who are hesitant to try it out because they don't know what they're doing.

If you're new to online trading, don't worry - here are some things you need to know before getting started.

Do your research

The first step in online trading is to do your research. Learn about the different types of investments available and figure out which ones fit your risk profile. Determine what you want to achieve with your trading and come up with a plan based on that.

Online Trading Made Easy What You Need To Know
For example, if you're looking to generate income through online trading, you'll want to focus on short-term investments. If you're looking to build your portfolio, you may want to consider longer-term investments. 

To make profitable trading strategies, you need to rely on experts' advice, so it would be great to find a trading platform that offers good educational resources. Also, make sure to read blogs, watch videos and attend webinars to learn more about online trading.

Choose the right platform

Once you've done your research, it's time to choose a trading platform. Not all platforms are created equal, so it's important to find one that suits your needs. Consider the cost of using the platform, the type of investments available, and, of course, the mentioned educational resources offered. 

In this context, exploring the features of Maverick Trading might be worthwhile, as it stands out for its unique approach and user-friendly interface, offering a comprehensive set of educational materials to support traders at all levels.

Also, make sure to read the terms and conditions of the platform before signing up. Some platforms have a lot of fine print that can be difficult to understand, so it's important to know what you're getting into.

On the other hand, some platforms are free to use, which can be a great option if you're just starting. You can always upgrade to a paid platform later on if you feel like you need more features.

For example, Alpha Spread has a Discounted Cash Flow or DCF valuation tool that estimates the company's value based on projected future cash flows while also adjusting for the time value of money. This will give you the knowledge to make more informed stock trades.

Open a demo account

Before you start trading with real money, it's a good idea to open a demo account. This will allow you to practice trading with virtual money and get a feel for how the platform works which is important because it will help you avoid costly mistakes when you start trading with real money.

A demo account can also help learn how to use the platform's tools and features. Many platforms offer different tools, such as trend indicators and oscillators, which means you can trade more effectively.

For example, if you're trading stocks, you can use a moving average to help you determine whether a stock is Overbought or Oversold. This information can help you make more informed decisions about whether to buy or sell a stock and avoid costly mistakes.

Start small

One of the biggest mistakes people make when starting online trading is jumping in with both feet. However, it's always a good idea to start small when you're first getting started in online trading. This will help you to get a feel for the process and learn the ropes without risking too much money. You can gradually increase your investment as you become more comfortable with the process.

Many platforms offer different levels of investment, so you can start with a small amount of money and work your way up. This is a great way to test the waters and see if online trading is right for you.

Additionally, you can set stop losses and limit orders to help you protect your investment. This can be done through the platform's settings or your broker. For example, a stop loss is a type of order that tells your broker to sell a security if it falls below a certain price. This can help you protect your investment from big losses.

A limit order is an order to buy or sell a security at a specific price or better. This can help you get the best price possible for your security.

Stay disciplined

One of the most important things you need to remember when trading online is to stay disciplined. This means having a plan and sticking to it, regardless of what the market is doing. Don't let your emotions get in the way of making good decisions.


For instance, if you're trading stocks, don't panic and sell your stock if it falls in price. Instead, wait for the stock to rebound so you can make a profit. This takes discipline and patience, but it will pay off in the end.

When you're trading securities, it's important to understand your risk tolerance. This means knowing how much you're willing to lose on any given trade. If you don't have a lot of money to invest, you may want to stick to lower-risk securities, such as bonds.

Watch the news

It's important to stay up-to-date on the latest news and events in the market. For example, if there's a big announcement from a company, such as earnings or a product launch, you may want to consider trading that security because there could be a lot of volatility.

On the other hand, if there's an economic recession or a natural disaster, you may want to stay away from certain securities because they could be riskier. By watching the news, you can make informed decisions about which securities to trade and which ones to avoid.

Apart from the news, make sure you're tracking the major indexes, such as the Dow Jones Industrial Average (DJIA) and the S&P 500. These indexes can give you an idea of how the overall market is performing.

Use a broker

When you're first starting in online trading, it's a good idea to use a broker. This will help you to get the best possible prices for your securities and ensure that you're following the correct procedures.

Brokers also offer different services, such as research and analysis, which can help make trading decisions. Additionally, brokers can provide you with education and training to help you become a better trader.

There are many different brokers to choose from, so it's important to do your research before selecting one. It's also important to read the broker's terms and conditions so you know what you're getting into.

Diversifying the portfolio

A key element of successful trading is diversifying your portfolio. This means investing in a variety of different securities, such as stocks, bonds, and commodities. By doing this, you can reduce your risk if one security performs poorly.


For instance, if all of your money is invested in one stock and that stock falls in price, you could lose a lot of money. However, if you have a diversified portfolio and that stock falls in price, it won't have as big of an impact on your overall investment.

This doesn't mean you should invest in every security out there. It's important to do your research and find the right securities to fit your investment goals.

The assets you choose should also match your risk tolerance. If you're not comfortable with taking on a lot of risks, you may want to invest in safer securities, such as bonds.

Stay away from penny stocks

Penny stocks are stocks that trade for less than $5 per share. They can be very risky and are often not worth investing in. Why? Because the companies that issue these stocks may not be very stable and could go bankrupt. As a result, you could lose all of your money.

If you're looking to invest in stocks, it's best to stay away from penny stocks and focus on more established companies. This will help reduce your risk and give you a better chance of making a profit.

On the other hand, if you're looking to trade penny stocks, make sure you do your research first. Understand the company's financial situation and what it's doing to increase its stock price. Also, make sure you have a solid plan in place in case the stock falls in price.

Follow the trends

When you're trading securities, it's important to follow the trend. This means buying stocks when they're going up and selling them when they're going down. By following the trend, you're more likely to make a profit on your investments. It's also important to remember that trends don't last forever so you'll need to be prepared to sell your securities when the trend changes.

These trends are usually easy to spot if you're paying attention to the news and the financial markets. They'll also be reflected in the indexes and other financial indicators.

Use technical analysis

Technical analysis is a tool that traders use to predict future price movements. This involves studying past price movements and trading patterns to identify potential buying and selling opportunities.


Many traders use technical analysis to help them make trading decisions. By using this tool, you may be able to improve your chances of making a profit. For example, if you see that security is breaking out of its trading range, you may want to buy it.

However, it's important to remember that technical analysis is not always accurate. So, you should always use other methods, such as fundamental analysis, to confirm your findings.

Conclusion: Online trading made easy: what you need to know

There are many things you need to know about online trading to be successful. Make sure you do your research before getting started and follow the trends and use technical analysis to help make informed decisions. Remember, it's important to diversify your portfolio and stay away from penny stocks.

By doing these things, you'll give yourself the best chance of making a profit from online trading.

About the author 

Peter Keszegh

Most people write this part in the third person but I won't. You're at the right place if you want to start or grow your online business. When I'm not busy scaling up my own or other people' businesses, you'll find me trying out new things and discovering new places. Connect with me on Facebook, just let me know how I can help.

{"email":"Email address invalid","url":"Website address invalid","required":"Required field missing"}