The Stock Market is still an attractive place for retail traders, as prices continue to be volatile. Since volatility equals opportunities, and with so many options to invest in from the comfort of your home, there are some key steps you should not skip when trading stocks. Below we’ll explore what you need to know.
Learning before live trading
Most of the people who look for a work-from-home opportunity are deceived by the illusion of having absolute freedom, no responsibilities and that’s the main reason why they fail. In fact, stocks trading at home is a challenging activity which requires a lot of study and work. There are some skills that must be developed and that does not happen overnight.
If you don’t want to fall into the same traps, leave the profits aside, and think how can you learn to trade better. Understanding the fundamentals (accounting, financial indicators, monetary policy, etc.) as well as balancing them with technical knowledge (price indicators, support/resistance, order flow, etc.) and the market sentiment, should be your top priority. Start with a long-term vision and make sure that you don’t skip essential steps along the way.
Setting up your infrastructure
There’s a huge debate on what you need in order to trade from home properly. For a beginner, a simple laptop will suffice. That happens because you won’t be able to monitor many stocks in your early stages. Still, as you continue to develop, you should allocate a portion of the profit towards developing your infrastructure.
A good PC, with two or three monitors, will make your day-to-day tasks easier, and you will be able to monitor multiple instruments at the same time. Start small, but as you progress, constantly improve your trading desk.
Choosing the right brokerage company
Trading from home means dealing with an online broker. There are many ways you can trade stocks. Whether you want to choose share trading, options, or share price trading with easyMarkets, which offers among the tightest fixed spreads in the industry, you should make sure that your broker offers you the right trading features that suit your needs.
Regulation for the retail brokerage industry had developed a lot and we can’t talk about too many scam brokers anymore, but still, each company offers personalized trading features and your job will be to figure out which one will suit you the best. It may seem like a small detail, but choosing the right broker is not as easy as you think. So, take time to explore the offering from a range of different brokers, and try their features with a demo account if one is available before you trade for real.