Becoming an online trader is a dream for many people, and armed with the right knowledge, skills and expertise it can be a great way to generate a passive stream of income and build long-term wealth.
There are a host of different trading opportunities available to leverage, and whether you’re intrigued by FX trading or you have an eye on investing in blue chip stocks, you may be wondering just how realistic seeing growth in your portfolio is without a background in finance.
Although researching the basics of the stock market and finances is essential to gain a thorough understanding of how they work, the good news is that you do not necessarily need a university degree to become a proficient trader. Of course, trading doesn’t come without its risks, but those prepared to take the time to learn and to play the long game have the potential to see success, and thanks to the wealth of new technology now available to traders it has become easier than ever to start or continue your journey.
Smartphone apps, signalling software and other innovative tech creations have been assisting day traders significantly over the past few decades and have meant that it’s no longer necessary to spend every waking hour online to get the same results it once was. In the past, most advancements were only useful to people who were employed by major companies, but now, tech can be leveraged by anyone who has an interest in trading – from the seasoned pro to the complete newcomer.
These leading technology platforms and networks have changed the face of trading forever, and each is a useful tool to consider when starting out, as well as further into your trading journey.
Blockchain
There is no denying that blockchain has transformed the financial industry, although some may argue that this has not been for the better. Blockchain is the technology behind cryptocurrencies such as Bitcoin, which have become hugely popular over the past five or six years, and each runs on its own network, with the blockchain responsible for ensuring security.
But aside from this, blockchain will also have other uses in the coming decade, and we’re only now beginning to fully understand what is possible. Many countries are looking at using blockchain as a way to address global trading issues, which include high costs of entry and a lack of transparency.
Blockchain is also very useful at simplifying the process of obtaining a Letter of Credit, which is a payment mechanism that many entities use when they are trading internationally – but what else it could do for us in the longer term remains to be seen.
Trading apps
The advent of online trading apps has made it quicker, easier and more accessible than ever for the average person to buy and sell stocks, mutual funds, and other commodities. Even ten years ago, creating an account to day trade was a challenge, with limits to how easily it was possible to buy individual shares, while the commissions for each trade were also once much higher.
Nowadays, you only have to search on the Apple or Google Play app stores via your smartphone to find a reputable trading app, create an account and make your first deposit so you can start trading; the process can take less than five minutes, and you could already own a few shares in the company of your choosing in the time you’d spend making a cup of tea.
Online Forex platforms
While mobile apps are all the rage for buying and selling stocks, bonds, and mutual funds, trading forex can be done using both computers and smartphones with ease. There are countless online forex platforms that are designed to help you get started in the market, where traders buy and sell foreign currencies to take advantage of market fluctuations and ultimately, make a profit.
The advantage of using a reputable forex platform is that you can create an account and begin trading using a demo functionality, which allows you to practice your trading without using real money. You can make mistakes, take gambles, and explore the world of forex all without losing a single dime, and learn the ropes before making your first real-life trade.
When you’re ready to begin trading, you can add money to your forex account and invest in the currency pairs that interest you the most, using leverage and margin to make your trading more profitable. While trading alone is a lot harder than trading when part of a large financial institution, you can still make money through forex day trading with the right strategy, and by taking the time to learn the market inside out.
AI and machine learning
Another way that online traders are benefiting from new technologies is with the advent of AI and machine learning. Now, anyone trading online can access specialist software that allows them to take advantage of automatic signalling, where market movements are predicted in advance to allow you to make savvy trades. It’s a great way to better understand market trends or to predict how a stock or forex pair may adjust in price in the coming days or weeks – but it’s still important to do your own analysis and avoid making any moves that don’t align with your long-term strategy.
Ready to become a day trader?
There are countless online platforms that you can leverage to become a day trader in 2022. If you have an interest in buying and selling foreign exchange, find a forex platform that allows you to create an account, tests your trading skills without using real money, and then allows you to add funds using your bank account.
Those who have a greater interest in stocks, bonds, and mutual funds can also sign up using digital platforms and mobile apps. Trading has never been easier, while keeping track of market trends and analysing past data is also simpler and more accessible than ever before – so if you’ve been sitting on the fence and admiring from afar, then now might just be the time to take the plunge.
Disclaimer: Investing money carries risk, do so at your own risk and we advise people to never invest more money than they can afford to lose and to seek professional advice before doing so.
