Investing in the stock market is no longer a privilege reserved for high-net-worth individuals – with more and more people turning to online trading, the opportunities are now available to everyone.
When it comes to online trading in South Africa, there are a few things you should know before getting started. First and foremost, online trading is simply the act of buying and selling assets through an online broker. This can include stocks, bonds, commodities, currencies, and more.
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Here are some essential tips for starting out in online trading:
1. Do your research
Before you start trading online, it's important to do your research. This means learning about the different markets and asset classes that you can trade in, as well as understanding the risks involved. It's also important to familiarize yourself with the various platforms and tools that you'll be using. By doing your research upfront, you'll be better prepared to make informed trading decisions down the road.
2. Start small
When you're first starting out, it's best to keep your trades small. This will help you limit your losses if things go wrong and give you a chance to learn the ropes without putting too much at risk. As you gain experience and confidence, you can gradually increase the size of your trades.
3. Use stop-loss orders
A stop-loss order is an order placed with a broker to sell an asset when it reaches a certain price point. This can help limit your losses if the market moves against you.