Nine (9) Steps to Effective Online Trading in Foreign Stocks, Commodities, Forex, Indices, Cryptocurrency and ETFs - Philippines

Nine (9) Steps to Effective Online Trading in Foreign Stocks, Commodities, Forex, Indices, Cryptocurrency and ETFs - Philippines | Efprime Financials

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Here are the Nine (9) Simple Steps to Effective Online Trading in Foreign Stocks, Commodities, Forex, Indices, Cryptocurrency, and ETFs - Philippines | Efprime Financials

Step 1: Know your risk tolerance first
Step 2: Define your goal
Step 3: Decide on a strategy

Day Trading;
Capital appreciation; and
Copy Trading

Step 4: Choose a Reliable Online Trading platform
Step 5: Set your Entry Point/Exit Point and take advantage of Leverage
Step 6: Commit to your trades
Step 7: Don't dwell in the past, you learned something
Step 8: Increase your intelligence with technical analysis
Step 9: Do it again and again!

Before I begin, let me suggest that you attend a free webinaron how to trade in the eToroscheduled every Wednesday and Saturday at 6PM. Register in this link:Click Here

Investing in the above-mentioned assets are risky investment platforms. You must know about the investment platforms first before you dive into investing your hard-earned income so as not to lose money.

Learning about these skills can help you in your financial life. It provides a steady source of active income or maybe a source of passive income depending upon your goal in life. At the end of the day, as you do this skill, you will end up learning new things that will help you later on in upping your trades.

To effectively trade online you must adopt the following easy steps:

Step 1: Know your risk profile first

The first step in effective trading is to know your risk profile first.A risk profile is an evaluation of an individual's willingness and ability to take risks. It can also refer to the threats to which an organization is exposed. A risk profile is important for determining a proper investment asset allocation for aportfolio. Organizations use a risk profile as a way to mitigate potential risks and threats.1/

Your risk profile may either be conservative, Moderate, Balanced, or Aggressive. The higher your risk tolerance is, the higher is the rate of return that you might get from your investment, provided that you know what you are doing.

You will know your risk profile by answering this attached questionnaire.

Step 2: Define your goal

You must also know your goal or purpose in doing your online trading. Your goal must be SMART i.e. Specific, Measureable, Attainable, Realistic, and Time-Bound. Your goal may be long term or short term.

Step 3: Decide on a strategy

You can employ the following strategies in your trades to achieve your previously set goals:

Day Trading;
Capital appreciation
Copy Trading

Day Trading is trading performed byactive traders who execute intraday strategies to profit off-price changes for a given asset.Day trading employs a wide variety of techniques and strategies to capitalize on perceived market inefficiencies.Day trading is often characterized by technical analysis and requires a high degree of self-discipline and objectivity.2/

Capital appreciation is a rise in an investment's market price.Capital appreciation is the difference between the purchase price and the selling price of an investment.Investments designed for capital appreciation include real estate, mutual funds, ETFs or exchange-traded funds, stocks, and commodities.3/

Copy Tradingenables individuals in thefinancial marketsto automatically copy positions opened and managed by other selected individuals. 4/

For Stocks, your investment is also added by Dividends. As part-owner of the public company, you are given dividends as a distribution of the company's net income for its operating period. To maximize the growth of your portfolio, any dividends received should be reinvested to performing investable assets.

Step 4:Choose a Reliable Online Trading platform

This is a significant part of your success as an online trader investor. You should get an online broker that can help you achieve your goals. Choose a partner that has a good reputation. Use google to check out all the available online platforms operating in the Philippines.

Let me share with you my platform which is delivering results so fast, eToro.eTorois asocial tradingand multi-assetbrokeragecompanythat focuses on providingfinancialandcopy tradingservices.It has registered offices inCyprus,Israel, theUnited Kingdom,theUnited States,andAustralia.In 2018, the company’s value was $800 million.5/ The advantages of using this app versus colfinancial are reflected in my previous blog.

Get started in investing with eToro by depositing $200.00 using the link and you will get an additional $50.00. Start here.

Step 5: Set your Entry Point/Exit Point and take advantage of Leverage

The majority of people lose money because of their mistake in their entry price and exit price.The Entrypoint refers to the price at which an investor buys or sells a security. The entry point is usually a component of a predeterminedtrading strategyfor minimizing investment risk and removing the emotion from trading decisions. A good entry point is often the first step in achieving a successful trade.6/

On the other hand, an exit point is a price at which an investor or trader closes a position. There are different types of orders that are used to close a position, including profit targets (limit orders), stop losses (stop orders), and/or market orders.The exit points are typically planned-out in an attempt to control risk and lock in gains. Taxes may also be considered as part of an exit point.7/

When investing using eToro, maximize the use of leverage to your advantage. If you already saw an uptrend pattern in your chart, then plan your entry point already together with it is increased leverage to grow profit from the transaction.Read my discussion of Leverage here.

Step 6: Commit to your trades

People lose money in online trading because of wrong decisions. The wrong decision as to how long should they hold a particular asset before selling the same. Or to buy an asset even if the valuation tells that the asset is overpriced.

In effect, these errors can be learned and can be improved upon. You must know the interplay of chart periodicity and technical indicators in order to learn as to when is the perfect time to let go of your asset.

You should set a cut loss provision depending on your purpose whether for short term trading or long-term trading.

Step 7: Don't dwell in the past, you learned something

If ever your trade does not provide you with what you planed, then relax and let go. Forget that transaction and move to your next journey.

Clear your mind from negativity and do it again. Rest for some time and rethink as to how can you improve your trade. The best thing that you can do is to reflect on what had happened and contemplate how you can avoid being in the same situation again.It is advised to write what happened to your trade and make it a lesson that you should never forget.

Step 8: Increase your intelligence with technical analysis

Technical analysis is atrading disciplineemployed to evaluateinvestments andidentify trading opportunities in price trends and patterns seen on charts.Technical analysts believe past trading activity and price changes of security can be valuable indicators of the security's future price movements. 8/

By using technical indicators, you can actually maximize the returns of your trades. The common technical indicators that I use are MACD, RSI, Stochastic, and Moving Averages.

Step 9: Do it again and again!

After your first successful or unsuccessful trade, do it again and again and again. You will master how it works as you trade. However, if you still fail to make it despite continuous attempts, then seek help. It is never too embarrassing to seek help.

Online trading skills by way of relying on charts is a lucrative activity that is rewarding. Take note, only if you study it hard.

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Disclaimer

The Author is advising readers to consult with your respective Financial Advisors before venturing in any investments. Investing your money is dependent to your goals and your risk tolerance. You should know the risks and rewards of investing before you actually do the same. The illustrations above are for educational purposes only and any risks or losses that you may incur are imputable to your respective decisions.

The author does not in any way provide a guaranty as to the effectiveness and quality of the products and services that are featured in this blog.The products and services were advertised based on personal experience and product and service reviews that the product/service received.

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