Countless millions of people from all walks of life want to make more money. Of course, this should really come as no great surprise. We still need to take into account that there are many more opportunities than ever before thanks to the world of online trading. You don’t need to endure the expenses of a broker, a middleman or substantial commissions in order to enjoy success. These are some of the reasons why online investing is proving to be a valuable tool. If you are completely new to this concept, it is a good idea to break it down into its basic principles.
A Virtual Revolution
During the 1980s and 1990s, the concept of trading would have generally involved working together with a large firm or a professional portfolio manager. Although there is no doubt that these methods produced results, the fact of the matter was that the “little man” could rarely become involved. All of this has now changed thanks to the Internet. The basic principle of online trading is nonetheless the same. You will choose an asset to invest in. By using third-party online brokers, you will be able to follow its share price minute by minute. Assuming that its value rises, you sell the asset and reap the rewards. Of course, losses can sometimes occur and this needs to be mentioned. With time and experience, you can minimise these losses and maximise your returns.
Why Now?
This is an interesting question. You might be surprised to learn that a January 2017 study found that the number of self-directed investors is growing at a pace that has never been witnessed (1). The first reason for this is that nearly everyone possesses some basic Internet skills. The second main point is that mobile devices and smartphones can now access high-speed wireless connections. Even if you are away from your desk or your home computer, there is still an opportunity to make money.
Your Investment Options
In terms of modern online investing, you are truly the master of your own domain. There are a multitude of different assets to choose from and each of these is associated with a specific set of benefits. Some common categories include:
- CFD trading.
- Forex (currency) positions.
- Stocks and shares.
- Treasuries.
- Indicies.
For instance, Forex trades are highly liquid positions that can offer quick returns. CFDs are safer havens due to the fact that you can make money if you correctly predict the movement of an asset (even if it goes down). Indices tend to follow the overall state of the markets while stocks such as Facebook will provide predictable dividends. So, the only limits are set by your imagination.
Modern Solutions for Modern Times
Many individuals from across the United Kingdom are finding it increasingly difficult to make ends meet. Unfortunately, this trend shows no signs of slowing down. A recent financial report showed that inflation has risen to three per cent (2). so, the power of the pound has once again fallen. Online investing using methods such as CFD trading or long-term stocks can provide you with a liquid “edge” that might not otherwise be possible.
The bottom line is that everyone can become involved within this industry. As the entry levels to open up an account are quite low, you will not have to risk a great deal of hard-earned capital in order to reap the potential benefits. Online trading could very well represent the virtual wave of the future.
Sources:
- https://marketersmedia.com/self-directed-investors-market-share-and-opportunity-2017-market-research-report/159159
- https://www.theguardian.com/business/2017/sep/12/uk-cost-of-living-rise-imports-boost-inflation-interest-rates
