The international stock exchange and currency markets are a great place to start developing your trading skills and testing your financial luck. This article is meant to educate readers who are thinking of investing in international markets and want to start trading in Forex, stocks, and commodities.
Why should you start trading?
Trading gives you an exciting opportunity to multiply your financial wealth. It grants access to the highly liquid international markets with their enormous resources and overreaching connections. If you have some extra money lying around, then it is not doing you any good by just sitting there. You should let your money do the work for you. Therefore, you should invest that extra cash into something productive like trading that allows you to expand financially.
How to start trading?
You can start trading by registering yourself with one of the many online trading platforms. Online brokers are financial service providers that connect you to the world’s stock markets. You do not need any serious documentation to start trading.
There is a minimum deposit that you must make with the brokerage firm to open your account. Once your money is deposited and your account verified, you can start trading right away.
How much should you invest?
You should only invest funds that have no immediate use and are not allocated for expenses in your budget. Beware that trading in stocks and Forex is a highly risky activity, and there is a real chance of completely losing your initial investment. Trading is like any other activity; it improves with time, experience, and skill. So only invest that which you are prepared to lose.
Why use a trading platform?
First, it will not be possible to trade without a trading platform. Trading platforms buy and sell stock on your behalf by leveraging a lot of money with the stock markets. Simple trading accounts can be opened with minimal amounts, while if you wanted to buy stock yourself from the market, you would need a substantial investment.
Besides, trading platforms provide you with apps that are updated every few milliseconds with information from various markets. They also offer a user-friendly interface that allows you to invest in multiple stocks from a single platform.
Types of trading platforms.
Trading platforms have access to only those commodities or stocks that have been purchased by the company. Different platforms operate in different markets, so always check out what kind of trading is offered by the company before depositing in their account. The four primary financial trading markets are listed below.
- Forex is short for foreign exchange. It is the trading of currency pairs based on the current exchange rate. A currency pair consists of two currencies that can be bought and sold. For example, EUR/USD is a currency pair of U.S. Dollar with the Euro. Forex traders look for fluctuations and movements in currency rates and buy those currencies forecasted to rise in the future. They can then be sold back for higher exchange rates in the future to make a profit.
- Cryptocurrency trading, in principle, is essentially the same as forex trading. The significant difference between crypto and Forex is that cryptocurrency is a blockchain currency that is not backed or supported by a standard or a government.
All international currencies are mostly backed by a gold standard at the central bank of that country. Since cryptocurrencies do not have those standards, they can be extremely volatile based on market demand. It is a high-risk, high reward trading activity, and precautions must be made before trading in crypto.
- Stock Markets are where shares of all the major public companies are listed, and their stocks can be bought and sold. Stock trading includes buying and selling of shares of a single company or a group of companies combined. Similar companies are combined in the form of weighted indices representing the portion of the stock of each company listed in the index. The value of the stock index fluctuates, depending on the overall performance of the group of companies.
You can also trade rare metals like Gold and Silver in the stock market. Precious or rare metals are considered safe stocks since their prices do not fluctuate much, and they automatically counter inflation through their value.
- Government, private and corporate bonds can also be traded through trading platforms. These bonds usually have a maturity date and a yearly rate of return. After being issued by the government or the relevant authority, the bonds can be traded in the secondary markets. Their prices rise and fall by the action of demand and supply.
Things you should consider before trading
Before starting a trading account, it is imperative to become familiar with how stock markets work. You should know which commodities are more volatile than the others. Start trading with slower markets that do not fluctuate a lot.
Moreover, keep a close eye on the prices of stocks you are interested in. Try to predict their movements and see how many times you were right. Make a habit of daily reading financial newspapers and learning about how the markets are working.
Eventually, there will come the point when you feel confident about trading. Start small and slow; you will most definitely face losses initially, so try to make micro trades that won’t cost a lot if you were wrong. Slowly start making bigger and bolder trades when you have achieved success in making small trades. Follow a routine and a well-defined trading strategy.
Are rare metals still a good investment option?
Rare Metals are precious metals that are found in limited quantities in the Earth’s crust. These include Gold, Silver, Platinum, Palladium, etc. These metals are used, besides other things, in IT and Space industries to design high-tech equipment. The most stable and low-risk trading is done in rare metals.
Metals are not affected by volatile financial markets, and their prices depend on the supply and demand of the metal. Moreover, a metal’s price does not fall below a specific limit, and the price fluctuations are limited. The only way Gold stocks can plummet is if an asteroid from space made up of pure Gold falls to the Earth.
- Gold is the safest, most reliable metal to invest in. The value of Gold has never gone down, and it has always represented a stable standard for investors and countries. Nations have always kept a store of Gold in their national banks, providing a permanent base for the currency. Investing in Gold is a long-term activity. You can buy Gold and keep it for a while, and when the price climbs, you can sell it for a profit.
- Like Gold, Silver is a rare metal, and its price is stable compared to other commodities. Silver is much cheaper to invest in than Gold. Compared to Gold, Silver has more diverse industrial applications, and an increase in demand can prompt a price rise.
- Platinum is also an attractive investment opportunity since the metal is not mined as much as Gold and Silver. This makes the metal rare, and its prices can fluctuate. The growth in Platinum, however, is much lower than that of Gold and Silver. So, it works more in mitigating risk than making profits.
- Rhodium is a rare and exotic metal that has recently hit the trading world’s highlights because of its rising price. It is used in large quantities by the automotive industry in the exhaust system. It works as a catalytic converter to absorb toxic materials from exhaust emissions.
- Palladium is an excellent investment opportunity as the metal’s demand is increasing in the industrial section, but the supply of the metal is still meager. The rising demand will drive the prices higher in the future, and this can be a lucrative investment opportunity.
What are the benefits of investing in rare metals compared to other investment options?
Metals hold a tangible value to themselves and can be sold directly as a commodity without the requirement of a counterparty to fulfill the agreement. Stocks, shares, and currencies can crash within days to zero if the market falls steeply. The value of a share is attached to its company profile, and you need the company to give you value on your purchased stock. Similarly, the currency is connected with the government or state. Metals, on the other hand, can be sold directly to a market without the need of someone fulfilling their contract. Moreover, these do not crash as demand for metals is on the rise.
WorldMarkets.com’s digital gold vault, perfect for online gold investing
It is now possible to digitally buy and hold metals like Gold without possessing the metals yourself. World Market’s Digital Gold Vault holds Gold that you have purchased in a vault at five different locations in the world. It might not be feasible for an investor to hold the Gold until the prices rise physically. In such a situation, you can conveniently access the World Market’s Digital Gold Vault with actual Gold in the form of Bars in your name until you sell it.
How has trading changed overtime?
Trading started from Stock Markets, where shares and commodities were sold to people present there. With advancing technology, trading has become more time-sensitive than ever, with prices changing within milliseconds. Trading these days is all about getting the information first. Speed, data, and connectivity are vital to modern-day trading.
What is Artificial Intelligence (AI) Trading?
AI is used by large scale investors and trading platforms to depict patterns and trends in prices. They can calculate and sense when a stock is about to rise or fall. Artificial intelligence is used to guide trading managers to make better decisions that are more likely to produce profits.
How has Artificial Intelligence revolutionized trading?
With the incorporation of AI in forex platforms, trading has become much more competitive. A new trader, with AI help, can make informed decisions and good trades, giving the Wall Street guys a tough time. Moreover, AI systems are relatively new to the trading world, and they will get even better with time.
Why consider investing with the assistance of AI?
Frankly, there is no downside to AI trading. Artificial Intelligence programs will only guide and assist you in training. They do not make the trades without your express permission. So, one can see AI traders as teachers and guides that help you make more informed decisions. You should consider trying AI assistance at least once if you haven’t already opted for it.
How to recognize a reliable trading platform?
The trading market is filled with a plethora of trading platforms from small scale private firms to large consortiums of financial institutions. Try to go for more prominent organizations as they are more liquid and secure. Read their reviews and judge their reputation through thoroughly searching the internet for that company. If there is anything shady, it will inevitably pop up.
The world’s largest and most extensive trading platforms offer their services through online trading platforms. There are several big names in the industry that are reliable and well-known throughout the trading community.
- Binance is a cryptocurrency trading platform founded in July 2017. Its HQ is in Malta, and it is one of the largest Bitcoin exchange platforms globally. The company has a good market reputation, and transactions on the website are safe using two-factor authentication.
- Bittrex is an American company dealing in Blockchain Technology and a trading platform for cryptocurrencies. You can buy, hold, and sell cryptocurrencies on Bittrex. It is not regulated under the U.S securities and exchange commission, but it provides safe and secure transactions provided the Bitcoin bubble does not burst.
- Plus500 is an Israeli company that offers worldwide trading in hundreds of securities, indices, and stocks. It provides customers with contracts for difference (CFD) as a primary mode of trading. CFDs are valid for a certain amount of time, and you cannot indefinitely hold stock or security. Any commodity that was bought with a CFD needs to be sold back before the expiry of the contract term.
- World Markets is an online trading platform that has consistently posted growth for the last few years. It has the market’s most advanced AI assistance and provides trading services to more than 50,000 clients worldwide. The company deals in trading commodity pairs, rare metals, currency exchange, indices, Cryptocurrencies, and digital gold trading.
- Gate.io is a Chinese cryptocurrency trading platform established in 2013. It is the world’s largest cryptocurrency network providing inter-crypto exchange between several cryptocurrencies. It has a unique platform called the Initial Exchange Offering (IFO) custom built to cater to customers who trade in blockchain currencies. Gate.io offers exchange between 180 different cryptocurrencies and provides access to more than 400 currency markets worldwide.
The purpose of this article is to inform and educate strictly. The information contained in this article should not be taken in place of professional advice. We encourage you to seek out professional guidance in pursuit of your trading career. Always check to see if you are working with the right people by going through their online reviews. Compare and contrast different platforms, their fees, and offers. Never invest money that you can’t afford to lose. The future direction of the market can never be accurately predicted, and analytics are only indications.