Can You Make Money Trading Online

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Can You Make Money Online Trading

Can you make money trading online? The good news is, you can absolutely make money trading online – but only if you know what you are doing.

In order to turn yourself into a trader with the best chance of making money online you need to:

  1. Learn how to trade properly
  2. Have cash to invest
  3. Stay in the market long enough
  4. Be prepared to lose money along the way

With the right education, time and dedication, online traders can make returns that beat any savings account going. They just need to stay in the market long enough, have cash to invest, and be willing and able to lose money along the way.

With the world in economic turmoil, shrinking interest on savings accounts and unemployment levels through the roof, having a little extra cash is always going to be useful.

If the idea of boosting your earning potential from your own home, on your terms, sounds good to you, but you’ve run out of things to sell on eBay, you may be wondering if you can make money trading online.

While it’s true not all online traders will become as rich as the likes of billionaire trader Warren Buffet, we do believe that successful traders are made, not born.

How Can I Learn How To Make Money Online Trading?

If you’re a novice investor don’t let that put you off because with just a few clicks you have access to all the tips, strategies and trading platforms you need online. Combine this with the help of experienced trading educators like the team here at Trade Room Plus, and you too can learn how to make money trading online.

The best way to learn how to make money trading is to be taught by those who can demonstrate that they do it well. You wouldn’t learn to drive without a driving instructor so why learn to trade without a teacher? 

We can’t deny that online trading can be hard to get your head around initially which is why we like to help people get to grips with the basics and help them practice in a safe, risk free environment before we set them on their way to trading solo using all the tips and tricks they’ve learned.

We pride ourselves on being able to demonstrate real trades taken live with the same strategies that we teach our members so they can see them working in real time. As well as offering an introductory phone call to establish your trading goals so that we can help you plan the best strategy to meet them, we have trading simulators that you can use to test your trading nouse before you invest any real money. 

When you’re ready to trade for real, we send all of our members trade signals so although you’re fully in control of making your own trade decisions, we’re all in it together so you never stop learning how to trade successfully.

What Are The Best Ways To Learn About Trading?

We’re glad you asked! Everyone learns differently so you should find the method that works for you and your learning style.

Here are some suggestions of ways that you can learn about trading:

  • Videos on you-tube – here is the Trade Room Plus channel where we trade live twice a week.
  • Join our Members’ webinar where we live trade our strategies everyday
  • Follow influential journalists, successful investors and hedge fund managers on Twitter who like to use the platform to share their experience, opinions and breaking market news. Here are a few to consider.
  • Read how to guides, knowledge articles and research studies on trading.
  • Find out everything you can about the markets you want to invest in. You can never do too much research here and should consider previous patterns, market trends, signals, for the securities that you want to invest in. Always use reputable and trusted sources of information from people or businesses that can prove they know what they’re talking about!

Which Markets Should I Trade To Make Money?

Common investment markets include Index markets, forex (currency), stocks (equities), bonds, options and derivatives, and physical assets, and within each of these there are plenty more speciality markets too.

Rather than choosing a market based on it’s potential returns, you should focus on making the best trades you can, and only then will making money follow.

Saying that, certain markets lend themselves to different trading styles, the amount of time you need to put into trading, and the length of time that you will need to invest for, so do your research as to which markets will be best for your investment goals.

What Type Of Trading Makes Money Online?

Making money trading online

When trades are executed well, you can make money with any trading style if you know what you’re doing but we will give you a brief overview of Scalping, Day trading, Momentum trading, Swing trading and Position trading so you can decide which you would be most suited to based on your attitude to risk, time, and money available. 

Overview Of Scalping

Scalping, also referred to as micro trading, is all about making small profits over and over again that look to take advantage of small quick movements in the markets over a matter of seconds or minutes. Traders implementing scalping strategies may place between 10-100 trades a day.

Overview Of Day Trading

Day trading, like the name suggests is all about buying and selling within a single day as no position is held overnight. Traders will hold positions over minutes to hours and many day traders use leverage to increase the potential gains from small price movements.

Overview Of Momentum Trading

Momentum trading focuses on trends in the market that show markets moving significantly in one direction in high volume. Momentum traders will pay close attention to moving average analysis, and the typical time frame for momentum trades are over hours and days depending on how quickly the market moves and in what direction.

Overview Of Swing Trading

Swing trading is all about capitalising on short term trends and generally takes place over one to several days. Technical analysis is used to spot short term price momentum and swing traders will pay particular attention to patterns and trends in the market over the price of the market.

Overview Of Position Trading

Position trading takes place over weeks to months and unlike day trading or scalping, traders look to make profits from long term trends rather than short term fluctuations. This approach means that traders aren’t so concerned with short term fluctuations as they are hopeful that over time their investment will ride out any dips and eventually go up.

What Style Of Trading Should I Choose?

As you can see from the brief overviews above, the style of trading that you engage in will largely be dependent on how much time you have to devote, what instruments you want to trade in, your appetite for risk and how large your account size is.

Whichever trading style you choose, remember that the only thing you can control is when you buy or sell, so always focus on learning the specifics of the markets you trade in so you can execute disciplined and timely trades.

What Equipment Do I Need To Make Money Trading Online?

trading online for making money

It goes without saying that you will need to have cash to invest, you’ll need a reliable computer set up but you don’t need multiple screens.The asset you will need most is TIME.

When you’re ready to trade online you will also need to find a broker to open an account with. See here for our recommended broker.

Accept That You Will Lose Money

One of the biggest pitfalls of online trading to be aware of is that you will lose money, so if you want to make money trading online you will have to accept you will lose money along the way too.

You’ve probably heard the phrase “You’ve Got To Speculate To Accumulate” and this reminds traders that returns can only come from good investment and good investments will only be made when they are based on a solid trading strategy.

A good trading strategy is something every trader should have and it will guide them through the rules, objectives, risk tolerance and timeframe of trades that will form the basis of their investment decisions they make. Find out more about trading strategy here.

Humblingly, even when you follow these rules, you’re not always going to be right and every trade is always a risk but that doesn’t mean losses have to be the end of the game. If you stay in the market long enough, you can work to even out any losses made, minimising their impact on your overall profits.

This quote from Peter Lynch, an American investor sums this up nicely with:

“In this business, if you’re good, you’re right six times out of ten. You’re never going to be right nine times out of ten.” 

Ready To Trade Online?

Whether you’re looking to trade as a hobby to top up your savings, are looking for serious financial gain or a full time way to make money, there are ways of online trading that suit every goal.

We hope that this article has shown you that whatever trading method you choose, it is possible to make money trading online if you follow the basic principles we’ve outlined.

If you’re ready to try online trading for yourself always remember that there are no quick wins, you should learn as much as you can, start small (never risking more than 2% of your trading account), never invest more than you’re prepared to lose, have patience and above all, enjoy it!

Try Trade Room Plus FREE for 14 days

Join thousands of online investors taking their first steps into the world of online trading with our online trading education hub and free 14 day trial. Our excellent customer satisfaction scores are testament to the value of the theory, strategies and trading discipline we teach. Join us to start your trading journey, master technical analysis, chart patterns and price action trading, learn when to short sell and when to go long.

At Trade Room Plus we have been showing our customers how to trade Forex, Index and Crypto markets on spread bet and CFD broker platforms since 2013 and we offer a comprehensive but accessible way to learn how to trade forex, start day trading, understand when to enter and exit a trade and how to improve your profitability.

Also see:

What Are The Different Types Of Stock?

Is Online Trading Safe?

Risks Of Trading

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