I. ONLINE TRADING – Online trading simply is the term used for transaction, which are either a buy or sell, short or option contract trade via the INTERNET.
More so, when it comes to Online trading, How do you consistently, make profits and make a living off trading? Well, first you have to gain understanding on “How to Trade.“ It will involve watching the markets, watching videos, reading articles, paper trading and actually participating in “real-time trading,” before you gain enough information on "How To" engage in this online activity.
(a). Online Trading encompasses
- STOCK TRADING
- BOND TRADING
- CURRENCY TRADING
- OPTION TRADING
- FUTURES TRADING
- COMMODITIES TRADING
(b). Online Trading Perspective
There are no solid static’s on how many people engage in TRADING, but it has been estimated that as many as two million individuals are currently doing it (as of 2014). Online trading gain increasing popularity while in the mid-to late 90's, with the introduction of affordable high-speed computers and Internet connections. Nowadays anyone, anywhere can trade just about any financial instrument on desk tops, laptops and mobile devices.
Unique and unorthodox, online trading is not considered mainstream in the traditional business sense. It is not your regular 9 to 5 job. it’s more white collared and involving sitting eyes glued to a computer screen. This business is ideal for those who thrive on doing research and making good sound decisions. However, online trading is not for anyone, and should not be consider for those who have impulsive and addictive tendencies or gambling problems.
As a business, an individual or company can become active participants in the markets, and become "TRADERS."
(c). What are Traders?
A trader is person or entity, which buys and sells financial instruments such as stocks, bonds, commodities and derivatives, in the capacity of agent, hedger, arbitrageur, or speculator. These are individuals who buy and sell securities for their own accounts and hope to realize income through short-term swings in the marketplace (rather than taking long-term, positions) --- usually executing positions within minutes, hours, or a few days.
Traders are either professionals (institutional) working in a financial institution or a corporation, or individual (retail). They buy and sell financial instruments that traded within the stock markets, derivatives markets and commodity markets, comprising the stock exchanges, derivatives exchanges and the commodities exchanges.