Although contemporary financial markets have been present in the economic scene for centuries, trading in them has been limited to a narrow circle of specialists and large investors with large capital.
Things have changed over the last two decades. Where technological developments have paved the way for ordinary individuals to trade and invest in various asset classes, and this development has mainly focused on electronic trading platforms, which have provided tools and basic information at a low cost. This is similar to the information revolution brought about by the advent of the internet and personal computers in the last decade of the last century.
Things changed upside down with the rise of online brokerage firms that opened up a wide range for trading in global markets such as currencies, stocks, oil, gold, silver and gas. The emergence of derivative products has contributed to an increase in the diversity of investment options; This gave investors the opportunity to speculate on the prices of assets without actually owning them.
This avoided the complicated routine of buying and selling the underlying assets, and exempted brokers from strict regulation, while providing adequate liquidity; Thanks to the entry of millions of traders, speculators and investors into the market.
Benefits and risks of trading in global markets
The biggest advantage of trading in global markets lies in access to a large number of asset classes, thus diversifying the investment portfolio and reducing trading costs.
Nevertheless, investing in global markets carries many risks. You can not sue a foreign brokerage firm if you experience any problems or become a victim of fraud, and the local financial control authorities do not have the ability to audit the activities of these companies.
But you can balance the benefits and risks of investing in global markets by limiting trading only with reputable brokerage firms. These companies usually operate in strong regulatory environments and are subject to strict supervision by the relevant authorities, which guarantees the rights of investors and monitors any unfair practices that do not take into account their interests.
Learn to trade in global markets
Made easy by the information revolution Learn to trade It provided access to thousands of educational books and references, both free and paid, that explained in detail the concepts and practices relevant to the investment world. It is not limited to written or even visual content, there are comprehensive educational and training courses aimed at helping traders gain the necessary knowledge.
This stage is necessary to be eligible to complete the self-learning journey, after which you will be able to pick out really useful educational material without falling into the trap of some who gather free information and try to pretend it to beginners among the false to get rich quick to become.
How to start trading in global markets?
After gaining the initial knowledge of the world of trading and investing, you can then move from the theoretical stage to practical training by opening a demo account at one of the brokerage firms. This important step will give you a realistic sense of the pulse of the financial markets at every moment, as well as mastering the trading platform before you risk your real money. In addition, you will have the opportunity to test the trading conditions and working conditions in general with the brokerage firm you plan to join.
If you have the idea to trade in the financial markets, the first step is to determine your investing experience.
And the availability of a minimum investment knowledge will help determine your next step in this wide world. For example: If you have previously taken courses in Financial Market Analysis – both technical and basic – you will be able to open a demo account to start the practical training phase as mentioned above.
If you do not have any previous investment knowledge or experience, you will need to start the learning journey all over again, or use the services of money managers and professional traders in some specialized websites (such as transaction copying platforms).
Determine the amount of the investment
The second question you need to answer is how much capital do you plan to venture into. The value of the said amount obviously depends on your personal income and the size of your savings. In this regard, experts recommend investing no money that does not bear the consequences of losing it or that can significantly affect the necessary expenses for the home and family.
Apart from personal considerations, the amount of capital to be invested depends on two other factors:
- investment feasibility
Here we mean the amount of money that needs to be set aside so that you can achieve a profitable return on your investment. This idea is based on the fact that trading and investing takes a lot of effort to monitor the markets and analyze the price movement, and therefore the expected return should justify the efforts made by the trader; Not to waste a few dollars.
- market requirements
Certain regulations and requirements set by stock exchanges and brokerage firms determine how much money should be set aside for trading. For example: Some brokers require that the minimum initial deposit is not less than a certain amount. This threshold rises when it works on the large exchanges to levels that may exceed the capacity of an individual trader.
Available investment options
There are literally thousands of trading and investing products available in the financial markets, the choice of which depends on the size of your capital and your professional experience. In the following rules, we review the key financial markets that capture the largest amount of investor interest:
The forex market is the largest of all financial markets; It has daily trading volumes of more than 6 trillion US dollars. Forex trading simply involves buying or selling one currency in exchange for another, and these currencies are traded in pairs.
The stock market is the oldest of the modern financial markets; It dates from the middle of the second millennium. In essence, stock trading involves the purchase of a shareholding in one of the companies listed on the stock exchange, which entitles you to receive a portion of the dividends and participate in the resolutions of the general meeting.
ETFs are an investment fund that collects the savings of small investors and commands them to track the performance of a specific asset, such as: stock indices, commodities or stocks. These funds are bought and sold on public stock exchanges like ordinary shares, giving them a lot of flexibility and relieving the investor of the burden of doing complex analyzes on their own. Where a team of experts manages the fund.
Cryptocurrencies and digital assets in general have been the newest and most popular financial markets for the past 10 years. and possession Bitcoin Most of the crypto-currency market transactions, but there are other currencies like Ethereum and Ripple that enjoy wide popularity and deep liquidity.
One of the most prominent advantages of cryptocurrencies is the ability to trade them 24 hours a day without being limited to specific working hours or a central exchange, or even to trade during weekends.
It was an introductory introduction to the main concepts of trading in the financial markets, which a trader needs to know before taking his first steps in this exciting world. Of course, each of the stages we mentioned in the previous lines contains many details that necessarily require a full explanation of the available options.
Finally, we want to emphasize the importance of allocating enough time and effort to gain knowledge and experience; Through continuous education and training, as well as not risking your real money and falling prey to the temptations of some dishonest brokerage firms.
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