A broker is a person who is the leader in trading. Apart from this, online money transfer service providers also offer trading options. ACE Money Transfer is used by just signing up, and then you can easily send money to Nigeria.
Trading can be done in-person, online, telephonic or via other electronic means. Exchange of goods is where the history of trading started. Instead of currency, goods were given to get other goods.
In this way, the trading started for the purpose of filling the needs of people. This was the start of revolutionary trading. Nowadays, goods exchanging is rare and the most popular methods of trading these days are currency trading and e-trading.
Five fundamental trading ways:
Trading for beginners is not a piece of cake. The best options for starting trading include technical trading, fundamental trading, swing trading, momentum trading, and scalping trading.
1. Technical trading:
Technical trading as the name indicates the makes use of calculations. Price charts, variations in market rates and volume data are analyzed via technical trading. Co-relations are basic for this type of trading.
To find the co-relations, statistics is applied. Lines on a chart are used as signals, and whether they are accumulating or separating, it makes the statistician or the trader visible the date he is getting. The data needs good interpretation and statistical skills.
2. Fundamental trading:
Fundamental trading is a type of trading which is long term and based on contracts rather than short term trading. The exchange is scheduled in this type of trading.
The proposed conditions, when met, the trading naturally occurs. It gives good results, and that is why a much popular kind of trading. Fundamental trading analyzes reports, lists, events, investments, and earnings.
3. Swing trading:
Swing trading, unlike fundamental trading, is a short term trading type. It time taken can be as little as 36 hours and can last for weeks. What changes occur in the amounts and stocks, earnings and the assets are dealt in the swing trading.
The remaining process and procedures are just similar to fundamental trading. If a fundamental trader does his work for a shorter time like that 2 days, he can be told that he is following swing trading.
If you have five thousand to ten thousand dollars, you can start swing trading. The amount included should be greater than the minimum limit because the company will arrange traders in descending order. You would be at the last if you deposited the least amount stated in their rules and regulations.
4. Momentum Trading:
Momentum trading is the more short form. As a trader sees variability in the stock rates; high or low, he offers to trade for that very period.
Hence, makes the trading happens in moments. The trading can be a lot helpful in high earnings. The risk in momentum trading is bigger and hence can give high benefit & greater loss as well.
Traders take the momentum of the lowering price to stable or higher or desired level. The stocks then have the desired profit. The continuance of the desired stock rate is suspected, and the graph for trader has to go linear with this until it goes down and loses the strength.
The closing rates are compared with zero lines; the positive or negative values determine the momentum. You can calculate it for 10 days, a month, and a year and so on. This is how an increase and decrease in prices are calculated according to the momentum.
5. Scalping trading:
Scalping trading is held for a shorter period of times of day trading to make a profit. In some cases, it becomes illegal. Swing trading causes a lesser headache as compared to scalping trading. Scalping trading can create a lot of tension. Risks are generally greater, and hence the profit can be bigger too.
It involves a lot of trades to do in a single day. By a larger number of trades, the popularity of your work increases. Short profits for various trades per day can have a larger amount in your bank at the end of the day. The time which is taken by scalping trading varies from 1 minute to 10 minutes. If your primary goal is scalping, it can be highly profitable.
E-trading of electronic trading is the digital version of trading. The electronic means provide ways to make use of exchanging the stocks, commodities, and currencies to get the profit. These are based on application software. In simple words, one exchanges buy or sells things via the internet.
Minimum amount can be 500$ for the starting e-trading via software. The simpler way to send money online can be via money transfer applications. Let us take an example that the broker is in Bangladesh and you are residing in the UK. The easiest way to send him money can be using ACE Money Transfer website. Money transfer to Nigeria for trading has been done.
The receiver can also use the same service if the trading is just the exchange of currency. In this way, online websites just make the process easier.
- Other specially designed software for internet trading or electronic trading purposes is also easy to use. Most common platforms of online trading are Fidelity Investments, Charles Schwab, TD Ameritrade, Ally invest, Merrill Edge.
These are online brokers available for people. All of these applications are not free, mostly. A fee has to be paid to purchase them. No matter, you want to send money to Nigeria online or to any other country, discounts are widely available.
Always look for the best suitable trading option. If you are a beginner, you will love using Ally invest, Charles Schwab, TD Ameritrade, and Fidelity as they require zero amount to get started with.
The beginners offer are the key attractions as they give higher profits for startups and even offer no fee for the starting months. The golden rule is, the more you invest, the more you earn. Keep in mind that risks are generally greater to get a larger amount of profits.