What is online trading and how does it work?
For a long time, the financial markets were reserved for professional traders. Private individuals had no opportunity to enter the trading market. Fortunately, this has changed. Today, you can bring Wall Street into your own living room with just a few clicks. More and more online trading exchanges are springing up. But what is online trading? How does it work? And above all: Can I use it to [...]
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What is online trading?
Online trading is primarily intended for private individuals.
First of all, you need to create an account on a trading platform. With most European providers, verification is also required, e.g. by means of a passport.
You then have access to many shares, indices (and now also some cryptocurrencies). Once you have uploaded your first money, you can start trading.
The biggest difference to "real" share trading: The trading platform serves as a broker. So you never buy real shares, but bet on rising (long) or falling (short) prices. These so-called "CFDs" (Contracts for Difference) make it possible to make a lot of profit quickly with leverage - but also to incur high losses.
How does it work?
- Find an online broker (eg. Plus500 or Etoro).
Risk Notice: 68% of CFD retail investor accounts lose money. - Log in and verify account.
- Inform yourself about the stock market (e.g. at Finanzen.at).
- Try demo trades without real money.
- If you are sure, bet first position with real money and wait.
Recommended online platforms
There are many different trading platforms on the Internet. We recommend:
- Etoro - Proven trading site where you can copy the portfolio and trades of other users with "social trading".
Risk note: 75% of retail investor accounts lose money with this provider. - Plus500 - One of the largest providers of CFD trading was founded back in 2008 and is subject to supervision by the British financial authorities, among others. It is based in Israel. 68% of CFD retail investor accounts lose money with this provider.
Avatrade - Avatrade also belongs to the group of larger trading sites. What is particularly striking is the large beginners' area with lots of learning materials.
The Plus500 Webtrader:
Can I get rich with online trading?
Time and again you hear stories of day traders who simply started trading and are now multi-millionaires.
First of all: of course it's not that easy. Otherwise there would be a lot more rich people today.
To make a really successful living from trading, you first have to learn it or use appropriate tools.
[adinserter block="2″]Since most people's emotions get the better of them (e.g. when a price slips briefly), many people are not made for trading.
Successful traders only think about their strategy and try to completely detach their own emotions from the business. After all, there could be an even bigger up after a down.
Of course it is possible to earn money with trading. However, we think it is very unrealistic to get rich as a trading beginner.
Recommended interview on DiePresse.com: "It's the hardest way to make easy money"
