LONDON, August 6, 2012 /PRNewswire/ --
It is written that on one day in 1929 American businessman Joe Kennedy sold all the stocks he owed. That was the day before "Black Thursday" and the Wall Street crash. An inspired piece of trading by a great business mind you might say, but it is also written that he knew it was time to get out when he received trading advice from a local shoe shine boy.
Historically, financial trading has been associated with the wealthy and powerful, people paying large sums of commission to brokers who are licensed to make trades through the various stock exchanges. But in the digital age it has become much more accessible to the common man and now it is possible for anyone with a computer and enough money to trade online.
The Internet is clogged with websites promising riches to those who want to trade online, with seemingly every link offering you the chance to earn thousands of pounds a day with only a few minutes work. Such promises could make it mighty tempting to open a trading account and put a few bob on the FTSE, but if it was so easy, wouldn't we all be millionaires? The fact is that beginners often lose more money than they win. It is extremely difficult to learn how to trade online and when you have no prior experience with financial markets it can be daunting.
When trading over the Internet you can use an online broker or financial spread betting company and despite most trades being processed electronically there are still dealers who can help you place trades over the telephone if you become stuck.
In the same way you wouldn't get behind the wheel of a car if you didn't know how to drive, or jump into a swimming pool without being able to swim, you shouldn't apply for a spread betting account without getting some help and learning your trade, because otherwise you will probably sink.
The importance of education, especially when risking your own money, cannot be stressed enough and the Capital Spreads Learn Centre provides a wealth of spread betting knowledge and how-to guides to help get you started.
As with swimming or driving a car, we don't learn these things overnight and it takes a lot of practise before you feel comfortable. The best way to learn how to trade online, is to trade online. "What?" You might ask, but Capital Spreads offers a free demo account which allows you to trade the world's markets without any of the risk. Why spend your own money learning when you can do it on a simulator? Practising trading will allow you to get to grips with the platform where you can learn how to open and close trades online and also familiarise yourself with the charting package that show the various market prices.
Once you have placed a few trades and had a good look around the platform, the next step is to decide which markets are you going to trade and how you are going to trade them. Popular markets such as gold and EUR/USD aren't for everybody and commodities behave differently to FX, so it's essential to find the one that best suits you. There are hundreds of market analysts and trading experts out there who are willing to share their trading plans for a few bob, but this a risky move for a relative novice and can push you out of your comfort zone and into a lot of debt very quickly.
Seminars and webinars are a fantastic way to see how the platform works first-hand and learn the do's and don'ts of trading financial markets online. Capital Spreads provides a variety of live face-to-face seminars and online webinars on demand to help you develop your trading strategy. There are plenty of companies out there to choose from, and you should choose the one that is right for you.
Spread betting and CFD trading carry a high level of risk to your capital and you can lose more than your initial deposit. These trading products may not be suitable for all investors so seek independent advice.
Capital Spreads is a trading name of London Capital Group Ltd (LCG) which is authorised and regulated by the Financial Services Authority.
SOURCE Capital Spreads