The Internet has made an indescribable change. For those who remember the world before the internet, it’s not easy to put it into words for someone who doesn’t know the world without it. Although many industries have changed forever – and some have disappeared altogether – the industry that has benefited as a whole is the trading industry.
We say as a whole because not everything is fun and games. While you can find some excellent advice online, there are also a lot of bogus traders selling snake oil. Social media is filled with people looking to take advantage of people by charging them money in exchange for investment advice.
You can start with the basics, and it’s free. Learn basic economic terms like market capitalization, what drives the price of an asset, and other variables, such as What is deflation and how it works. Today, we are going to give you some tips on avoiding shoddy advice online and what to look for when it comes to trading advice.
Check their credentials if you are taking trading advice from someone online. Do they have a proven track record in the industry? Are there people who have taken their advice in the past, and what do they have to say about their methods?
These are vital things to consider, as you want to ensure that the decision to trade your money comes from hard work and adequate due diligence. If someone is selling a course through Instagram and they can’t establish their credibility, these are the people you want to avoid.
Checking online resources like LinkedIn or YouTube, or doing a general media search will help you get the best results for the individual or business you plan to hire.
As we touched on in the previous point, if someone has a handful of followers, no online presence and offers you trading tips but wants you to pay, do you think they are acting in good faith?
Research the company or individual by checking their website, and seeing if they are registered to provide investment advice. Determining whether or not they can provide evidence of a proven track record in the industry usually begins with a simple website and online visibility. If a website has a real SEO audit, it will rank well and have good visibility in the top search engines.
Before the days of the internet, people used to read books on how to trade. Honestly, they did! Some may go to their local library or bookstore and order books to help them understand how trading works.
These days, you can find all this literature on the internet at the click of a button. You can also download eBooks and you can search for authors credentials as well. The best trading books are written by financial professors at leading universities or people who have made millions in the market.
World famous dealers She often gives insights in interviews; Sometimes, you don’t even need to buy any of their books. However, if you want to find bona fide advice and really want to build up your knowledge on the subject, literature is usually recommended.
Join forums or follow prominent merchants on social media
Follow this tip with some caution. However, as long as you apply the other points we made today when you are looking to join the forums or search for high profile traders on social media, you are more likely to find one that you can trust and learn from.
It is complex to trade any market successfully on your own. All markets are volatile and dangerous places to put your money. It is a slippery slope if you are not well equipped and do your own research and supplement it with the advice of professional online traders.
However, even by implementing all of the tips we touched on today, you can still be in a situation where you lose your money. This is because there is no way to guarantee a return in any market. It does not matter if you are trading commodities, forex, cryptocurrencies or stocks.
Your capital is always at risk, even if you are a professional trader. Therefore, you should not overindulge or invest money that you cannot afford to lose. Making sure you have an effective plan that gives you a little bit of exposure is a good start to learning about trading and risk management.
A good knowledge base and community will help you to some extent. However, if you don’t know what to look for and haven’t done enough due diligence, you’re only a deal or two away from losing your money.