Online Trading for Beginners

A Guide to Online Trading for Beginners

Online trading on paper and laptop

Online trading may seem a bit intimidating for beginners, but when you learn the basics, you’ll realize that it’s not! In fact, trading stocks provides you with an opportunity to become your own boss, as it allows you to work flexible hours. This means you can work from wherever, whenever you want.

How online trading and gaming can go together

One of the biggest drawcards of trading is that traders get to make their own money without having to wait for a fixed salary at the end of the month. This is why trading has become such a popular phenomenon around the world, including in the US. All you need to get started is sufficient capital, a good internet connection, and a smartphone or computer.

If you enjoy the thrill of playing online casino games such as slots, you might certainly enjoy the risk-taking and unpredictable nature of working with stocks, and other types of trading. Of course, it’s always a good idea to start small, and not go in too deep, too quickly!

If you’re a deft hand at games such as blackjack or poker, learning the ins and outs of trading might appeal to you too, as you would have probably already spent a lot of time learning how to take calculated risks, as well as doing your research and practicing (which will all come in handy when learning how to trade.) 

If trading online is something that interests you, then this quick guide will help you get started. Read all about how it works, the different types of trading you can do, what steps are involved, and how to choose the best broker below. We bet that after reading this, you’ll discover a whole new world of making money responsibly!

How online trading works

Finance trade manager showing reports screen concept of modern office

Online trading is essentially buying and selling orders for financial securities (or tradable financial assets) through a “middleman” called a broker or brokerage. Many virtual trading companies are offering such services online. However, it’s important to find a company that is reputable and trustworthy, so you don’t end up losing your hard-earned money. You also need to be very wary of scammers sending private messages to strangers on social media, offering trading services.  

Since the introduction of the web and faster computers, trading online has become a big global trend. A modern trader who opens an account with a broker gets to trade on a variety of international markets including indices, equities, commodities and currency pairs. This is more diverse compared to standard investments. Traders make a profit from temporary fluctuations in the market value of certain financial assets such as stocks and the well-known forex (that’s foreign exchange) pairs.

If all of that seemed like a mouthful to you already, don’t stress: we’ve included a short glossary of some of the above terms to help you out:

  • Indices: Market indices measure the movement and performance of a group of shares on an exchange, for example, Dow Jones and NASDAQ. 
  • Equities: These are company shares or stocks that can be traded. 
  • Commodities: This refers mainly to the trading of raw materials such as oil, gold and agricultural products. 
  • Stocks: These are all the shares that make up the ownership of a listed company.
  • Currency or forex pairs: When two different currencies are quoted against one another, for example, the euro versus the US dollar (used in forex [FX] trading)

Types of Trading

Now that you’ve got your head around some of the main terms, we can move onto the different types of trading. Below, we’ve provided a quick outline of the different types of trading services available at most online brokers. This is just to help you differentiate between the products and choose which one you believe is most suitable for you.

Forex Trading

Also known as FX trading, this is the most popular form of trading. Here, traders get to buy and sell currencies while looking at making a profit on the value of different currencies from around the globe (as we touched on in the previous section). This is great for beginner traders, as it does not require much capital. Most young professionals prefer FX trading.

Stock trading

Also referred to as shares, stock trading is essentially buying, holding or selling shares in assets listed on public stock exchanges. The most popular and reputable platforms to find stocks include AMEX, NYSE and NASDAQ. Usually these are for big assets, and are of interest to many business owners and wealthy investors.

Options trading

This is where people trade contracts that give them the right to sell or buy assets at a fixed price. However, such rights are not an obligation. This is one for more experienced traders, and could be one to put on the back-burner until you get the hang of trading!

Binary options trading

This is also known as the “all-or-nothing option” as traders expect to get either a fixed payout or nothing in return – which is more like gambling. This type of trading is solely based on the trader’s prediction of the outcome of an event in a specific market. As we touched on in the introduction, if you like to play casino games, this type of trading could appeal to you, although it will require in-depth research and a lot of calculated and responsible risk-taking.

How to trade stocks online

Businessman holding phone concept of online trading app on screen with laptop in background

In the sections above, we’ve outlined some of the key terms and types of trading. Now it’s time to try it out for yourself! To help you on your way, below are five easy steps to follow to get off the starting blocks with online stock trading:

Step 1: Invest in proper trading tools such as a high-speed computer or laptop, and monitors. Most traders in FX prefer using multi-display monitors to quickly see short-term fluctuations in different currencies. You also need to have a stable internet connection to be able to trade easily on top-notch platforms.

Step 2: Find a well-established brokerage firm online. Check its background, the services it offers, customer service, its site speed and whether it offers any perks.

Step 3: Start small. You don’t want to invest all your money in trading if it’s only the beginning and anything can happen – which is a big risk! Start with what you can afford to lose and keep learning before you commit to higher investments.

Step 4: Treat trading as a business. This is important if you want to be successful. Do your research on the products you want to trade, be strategic about how you will trade them and how much profit you can look forward to making.

Step 5: Be smart about it. Just as you would with new casino games, know when to withdraw your money when trading, and leave enough in your account for future use.

Choosing the best broker

Before you can get started with trading, it’s very important to us to give you some tips on choosing the best, and of course, the right broker. This will help you have a smooth trading experience online.

Safety first – Choosing a credible broker is your first step to a successful trading journey. You can start by checking online reviews and testimonials to see what other people are saying about certain trading companies before you sign up. More so, there are plenty of affiliate sites that will have lists of brokers, and you can check reviews of each to see which one works best for you.

User-friendly platforms – It may not seem important now, but choosing the best trading sites with cost-friendly and cutting-edge platforms is essential, as they can help you make well-versed trading decisions. Advanced trading platforms will have information on products as well as research tools and mobile apps, which both beginner and expert traders will find useful for making self-directed trading decisions.

Diverse trading options – The best broker will have a wide range of trading options. This means you get to trade in many local and international markets. The products offered should also accommodate different traders, from those looking for cheaper products to those of a higher caliber.

Final thoughts

Online trading is a great way to make an income, or get extra cash for that matter. However, it can only be profitable if you invest your time in learning how the market works and research more about the products you choose to trade. We hope that we’ve given you enough information on how to get started with this beginner’s guide. But if you feel that trading is not for you, you might want to try gambling instead!  

Hone your skills at Borgata Online

Trading on the internet is easy if you thoroughly understand the product that you want to trade. You can buy, hold or sell financial assets on your own, or ask a broker for assistance. But if you like making your own predictions, you could also check out our casino and sportsbook, which offer exciting new casino games and the opportunity to do some sports betting – we feature some of the best odds online.

Before you get too into your online trading research, though, why not use your strategic and risk-taking abilities to play some of the best casino games at Borgata Online? As one of the most established names in the business, we have a wide variety of games on offer, including all the slots and casino table games you can think of – sign up to find out more!