Can you earn money with trading?
Can you really earn money with Online Trading? – On this page, we give you the answer from our personal experiences. We will inform you about the opportunities and risks of the financial markets. What can you expect from trading and what is impossible? We will give you a checklist to maximize your profit. – Inform yourself in detail before you start trading.
Making money online on the computer with just a few clicks sounds very simple at first and is possible with trading on the financial markets. However, it is assumed that a trader can take certain risks in order to make a profit at all. What many beginners and advanced traders don’t know is that a trader must be an intelligent risk manager.
The risk must be intelligently managed and, if possible, removed from the market as quickly as possible. Only those who control their losses and are able to accept them will end up being a successful trader.
- Earn money with trading is 100% possible
- Without risk you will not be able to earn money on the stock market
- Knowledge of the markets and trade is absolutely possible
- The most important thing is to manage your own risk.
Trading experience: Only 2 options available
What comes in addition to the easy work on the computer to earn money with a few clicks is that there are only 2 options on the stock market: It goes either only upward (long) or downward (short). You only have these 2 options as a trader: buy or sell. In contrast to other professions or work, this small selection of possibilities is a very big advantage.
The same applies to the trader. This can either only make a profit or a loss. The exception is the break-even point. This means that there is no price difference in opening and closing the trading position.
In summary, the whole thing sounds pretty simple at first. The rules are transparent and unchangeable. In principle, a normal trade is carried out here. Traders buy an asset at a cheap price and try to get rid of it at a more expensive price. The profit and loss results from the price difference.
The advantages and disadvantages
In order to earn money with trading, one must also know the advantages and disadvantages, which were already mentioned a little bit in the upper part of the text. Get a good overview in the table below:
|No physical exertion||You can lose money (high risk)|
|Earn money with just a few clicks||Elaborate and continuous learning is required|
|Unlimited profits are possible|
|Fast and long-term profits are possible|
Earn more money through the use of derivatives and leverage
Thanks to new financial products (leveraged derivatives) and the services of some Online Brokers, traders can now make even more profit in the markets. Trading with small amounts of capital is also possible and can lead to high profits through real speculation. We are talking here about trading with derivatives, which in many cases are traded with high leverage.
The advantage of derivatives is that they are created for any size of capital. It is possible to start with just a few cents and increase the money. The derivative is always derived on an underlying. This allows you to invest in any number of markets. The broker allows you to work with a lever.
The leverage is, so to speak, a loan or additional capital for the trader. With a smaller security deposit (margin), a larger position size can be traded. The risk is covered by a stop loss or a margin call. The leverage increases the possible profit or loss. Special safety precautions prevent traders from incurring debts or extreme losses.
Summary of trading opportunities:
- Trading is possible with any size of capital
- The use of a leverage allows to win or lose more money
- You can invest in countless markets
- The risk can be hedged by various tools and strategies
Checklist: How to earn money with trading
In the following checklist we will give you various tips to make the maximum profit with trading. This is particularly suitable for beginners to prepare for the markets. With this checklist, you can learn step by step how to make money with trading.
We focus on avoiding losses and maximizing profits. Only if you have understood these 2 points in trading you can make a profit in the long run. Trading on the financial markets does not necessarily have to be difficult. It is important to have the correct information.
1. Which markets are the best to make a profit?
Before trading, the trader should think about the financial markets. Which markets would he like to trade and at what time? In the following text, we will give you a brief overview of the markets and their difficulties. For most traders, it is best to use Forex and CFDs (Contract For Difference). This allows you to invest in virtually all markets at very low fees.
But before that, it has to be said that you can earn money with any market. Traders usually have certain preferences. Test different markets yourself.
- Forex (currencies) are the most liquid market in the world. The volatility (strength of the price movement) is accordingly low. These markets are very suitable for beginners. You can invest with minimal capital and use leverage. In addition, trading fees are very low. In Forex trading you can catch very good trends and also react to economic news.
- Stock indices (Dax, S&P500) are a basket of different stocks represented in an index. Almost every country has such an index. These markets can be traded cost-effectively via CFD (difference contract). They are also very suitable for beginners.
- Cryptocurrencies are highly volatile and contain a higher risk than the other markets presented. This market is driven by various news and hype. Every investor should consider well whether he invests here. The movements of these markets are mostly irrational and incomprehensible.
- Stocks can also be traded very easily with an online broker. Even speculate on falling prices with a short sale. Shares do not always have to be extremely liquid. This is the ideal place to trade company news and catch global economic trends.
- Commodities are driven by global economic development. Political decisions can also influence prices. Commodities can also be traded very easily via CFD and long or short leverage.
In summary, you can make a very good profit with all these categories. As a trader, you have to distinguish the markets in these categories. There are stocks that are quite unknown and traded very little. As a beginner, you should be in the markets that are most traded and well known.
2. Choose reliable trading platform and Online Broker
The choice of an online broker plays a decisive role in your earnings. Many beginners often choose the wrong provider with too high fees because they follow advertising promises. The amount of the trading fees can reduce your profit extremely. Especially in short-term trading, fees are a very important issue.
In addition, the trading platform should function stable. The broker should have no connection interruptions and give you a good market execution. In the following points and tables you will get tested and trustworthy brokers recommended by us. From more than 6 years of trading experience in the financial markets, we have compared the best.
It is essential that the provider has an official license for the financial markets. Brokers without a license can in many cases be considered fraudulent. In addition, you should be able to test the provider free of charge in order to gain an insight into trading and the markets.
Factors for a good provider selection:
- Regulation and licensing
- Free demo account with virtual balance
- Small hand fees
- No hidden costs
- Stable trading platform
- Large selection of markets
- Fast and professional support
Try one of our top 3 providers:
|1. BDSwiss|| (5 / 5) |
Read the review
|Starting 0.3 pips||+ Individual offers |
+ Trading signals
+ Personal service
|2. Tickmill|| (5 / 5) |
Read the review
|Starting 1.0 pips||+ Options |
+ Best platform
+ 24/7 support
|3. Vantage FX|| (5 / 5) |
Read the review
|Starting 0.0 pips + 2$ commission per 1 lot||+ Good conditions |
+ ECN Broker
+ Personal service
3. Deposit and withdrawal with the trading account
Are you ready to invest real money? (Provided you have practiced trading in demo account) Do you feel safe in trading? – Then you can make your first deposit to the trading account. Depositing with the above recommended providers works very fast and uncomplicated.
Use well-known payment methods such as bank transfer, credit card, online banking, PayPal and more. The account can be capitalized in real time and you can start trading directly. However, the account must be fully verified before depositing. The broker will explain all the necessary steps.
Many brokers do not require a minimum deposit or only a small deposit of 100-200€ to open a real money account. Position sizes can be chosen to minimize the risk of losing money.
Use free deposits and withdrawals:
- Deposits in real time with electronic methods
- The majority of brokers do not charge fees
- Deposits already with very little capital
- Payouts are sent within 1-3 days
- Bank transfer, PayPal, credit card, online banking, cryptocurrencies and other methods
4. Hedge risk in order to earn money sustainably
Let’s get to the most important topic for the trader. The risk of a trading transaction must be calculated precisely. It is always determined by the position size and the associated stop loss. We recommend that a trader always works with a stop loss. It is an automatic loss limit. You thus limit the possible loss.
How much money should you invest per trade?
Professional fund managers and traders use 1 – 2% of the total capital per position. The risk can also vary according to preferences. In the end, the trader always decides for himself which risk he wants to take. Sensible risk management of 1 – 2% of the total capital is a very good choice because several losing trades in a row will not burden the account extremely.
A trader will always have fluctuations in his performance. It is not possible to be 100% right. One always trades only with probabilities and losses belong to it. It is also important not to be discouraged by losses but to continue to follow your concept.
Use these risk management tools:
- Stop Loss: Automatic loss limit that automatically closes the position at a certain price/loss.
- Take Profit: Automatic profit limit that automatically closes the position at a certain price/gain.
- Position calculator: Offered by the broker or integrated into the trading platform. This allows you to optimally determine your position size and adjust your money management.
- Sensible money management: The portfolio should be balanced. Positions that are too large can mean a quick exit for the account. Professionals use a risk management of 1 – 2% of the total account per position.
Hedging profits with Stop Loss
The Stop Loss also allows you to hedge winnings or money. If a position is in profit and you want to secure a partial profit, you can add the Stop Loss at any price.
5. Create trading rules and strategy
Now you have to consider which trading approach you want to pursue. There are countless trading strategies for the markets. This includes a good analysis and the consideration of important market news. The demo account is perfect for trying out different methods.
The trading rules reflect the approach of a trader on the market. In our experience, it works very well if the trader sets his own rules or adopts others and adheres strictly to them. Emotional action must be faded out. Trading is like a job that has to be done step by step. Therefore it is indispensable for me to trade without a set of rules.
Typical process of a trade:
- Fundamental Analysis (News)
- Technical Analysis (Chart)
- Risk calculation
- Position opening
Continuing education and knowledge is important in Online Trading
Continuous learning is the way to success. Never deny yourself new information in trading, because it could help you earn money. Many brokers offer a solid foundation for trading. The knowledge can then be expanded through webinars or daily analyses by professional traders. For the first profits, it is often sufficient to follow the strategies of a broker.
From our experience, we can say that simple strategies usually work best. Online trading doesn’t necessarily have to be difficult. It is a simple principle of supply and demand. Less is often more. Therefore a clear set of rules is very important.
Never stand still and inform yourself in detail. Without learning success, there will also be no success in trading. In addition, the information on our website will help you. Under the “Trading Guide”, you will learn the correct execution of a trade step by step and our “10 best trading tips” will protect you from high losses.
How much money can you earn with online trading?
Profits are unlimited in exchange trading. You can get rich with speculations without any problems. The position size and risk play the biggest role here. The higher the risk, the higher the possible profit.
The most-traded markets are best suited for big money. Because these are the most liquid. This means that you always get the correct price execution because there is enough demand or supply available. In order to earn a lot of money, you have to bring enough capital with you. The use of leverage allows the trader to make additional profits.
- Unlimited profits are possible
- “You need a lot of money for a lot of money”
- The stake always determines the possible profit
Conclusion: Earning money with Online Trading is possible
Earning money with Forex and CFD Trading is possible without problems. It is one of the fairest transactions in the world because buyers and sellers exchange at certain prices. It is also a very simple way to participate in the financial markets.
Opening a position is not really difficult and you can only do little wrong. Earning money with a few clicks on the computer sounds very simple and tempting. But don’t forget that you need the necessary knowledge to stand up to other traders in the long run. The best traders win the highest sums.
The amount of profit is still determined by the market and the money invested. No profit is possible without risk.
Good luck in trading.
Earing money with online trading is quite simple but you should be aware of the risks.