Trading the financial markets is considered as one of the most attractive investment opportunities in the global economic order. While it may appear intrinsically complex to profit from the massive fluctuations in the markets, financial trading has always been a stable and attractive profit-making machine for millions of investors from across the world. There are indeed risks associated with trading in the financial markets, but we can’t deny the fact that even a rookie can learn to become a professional trader with proper discipline and the right guidance. To that extent, we have created this unique financial trading resource to offer the best trading advice, tips, education, and articles that offer guidance to rookie and professional traders.
The evolution of the financial markets is nothing short of a miracle. Even before the advent of technology and the internet, investors have been dealing with a wide variety of financial instruments and their derivatives. Technology has only accelerated the movement by offering a range of tradable products that suit different investor requirements. To make matters simple, let us categorise the assets into eight broad categories:
Cryptocurrencies are the latest addition to the list of tradable instruments, with all the other categories being an integral part of the world’s financial economy. These assets are further classified into different products, such as shares, futures, CFDs, options, SWAPs, and more. The actual trading specifications and volume requirements depend on the broker and the exchange/market that they are traded.
We have always been asked about the best way to enter the fascinating world of financial trading. Some of the most common questions relate to the specific requirements of a trader, vis-à-vis, education, experience, but most importantly, the initial capital required to enter the markets. Most newbie traders are discouraged by the apparent large trading investment required to indulge in any meaningful trading. Although most trading occurs at the institutional level, retail traders can access the markets with an absolutely low minimum margin. The first order of business is to find a reliable broker that can promise a trading platform that is free from any conflict of interest. They should be regulated, customer-oriented, and offer all the basic tools required to trade the markets in an informed manner. A majority of present-day online CFD brokers offer access to almost all of the different trading instruments, with the initial trading requirement kept unbelievably low to attract smaller retail traders. Nowadays, you can start trading with just a $100 deposit, or even a lower amount, as permitted by the broker. However, you must realise that trading with smaller amounts will expose you to a concept called leverage, which can induce high risks in trading. Read through our detailed trading articles and guides for information on leveraged trading and how to minimise your risks against market volatility.
Aside from the aforementioned leverage, there is a multitude of risks in trading the financial markets. For instance, the market is quite volatile and unpredictable, in the sense that its movements cannot be calculated with 100% accuracy. Of course, it is possible to analyse the fluctuations in price to a certain extent, but proper money management skills, technical know-how, and fundamental analysis are all essential for achieving profits consistently. Furthermore, there is a downside risk to investments in the form of news events, a threat to the integrity of the underlying asset, and, most of all, insolvency proceedings against a broker. Sometimes, fraudulent brokers may shut shop without repatriation, or outright deny withdrawals to its clients. Hence, you must be well aware of the risks in financial trading before investing your hard-earned funds.
With over three decades of investing experience, countless contributions to research, and a number of successful followers under my wings, I have dedicated my life to studying, analysing, and investing in the global financial markets. My years of exposure to the global economy has provided me with a spectacular insight into how the financial markets operate and how we can minimise our risks by following a disciplined approach to trading.