A question we all have is: Why does Online Trading looks complicated?
Online trading is the act of purchasing and selling financial products on the Internet. The trader buys and sells using an online trading platform.https://marketbusinessnews.com/financial-glossary/online-trading-definition-meaning/
Online trading types include: binary option, digital option, Forex, Stocks and Indices, ETFs, etc.
Whether you are a newbie to online trading or fairly experienced, you will agree that online trading looks complicated. There is no single strategy that works for everyone. You will fail from time to time; but don’t lose hope, even the veterans of online trading do lose. But what matters is that you dedicate time on learning from mistakes and finding a strategy that suites you best. Here are some reasons that make things look complicated.
1. Human factor
It is undeniable that Human factors come into play whenever we are trading, and it plays an important role in trading. Here are some, but not all human factors that affect the way we trade:
- Attitude towards trading
- Correct/ incorrect judgement
It is important to note that when you are trading you should avoid and eliminate emotions. Whether positive or negative emotions, both lead you to making incorrect judgement. You may notice this as a majority of people do very well on the demo account, but do poorly on the real account. This is typically caused by emotions in trading. Positive emotions may cause greed and overconfidence while a negative emotion may result in a sense of desperation.
Your attitude towards trading also determines how easy or how much harder trading will be for you. Maybe you developed a bad attitude because you lost a deal, but if you fix your attitude and find the right strategy, things will most likely start going in your favor.
The Last point is experience. This doesn’t need much explanation as every time you do anything, whether trading or anything else in life, the result will definitely depend on your experience. Please practice as much as you can to get more experience. If you want to try out a new strategy or just general practice, use your demo account.
2. Changing markets
Markets are ever changing, they are never and will never be static. That by itself makes it complicated. Even if you try your best to study the markets, at no point will you find the same market condition repeating itself. In trading many factors affect the price of an asset that you cannot control, for example:
- Capital Markets
- International Trade
- Political News
- Economic Reports, and many more…
This can be countered by techniques that can forecast the patterns. The conditions don’t repeat, but patterns do. So it is better to familiarize on patterns. Also, with more trading experience, you begin identifying these patterns spontaneously.
3. The User Interface/ The Trading Platform
Majority of the trading platforms have trading platforms with very many tools and charts, and for newbies, this may look intimidating to them. There are tonnes of charts, templates, indicators, currencies, etc.
Also many Brokers make it look sophisticated just to attract people who like that sort of interface, but ExpertOption, Ayrex and IQ Option are among the few who keep it simple yet elegant, that’s why I recommend them to you, they are simply the best. They offer introduction material and simple comprehensible material.