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Investing online is making money work in some investment facilities with the aim of multiplying them. All ways of profit on the Internet multiply your money in different ways, but the main focus of earnings still goes to Forex – the interbank currency market. Forex traders from different countries of the world exchange currencies at a favorable rate for them. They make money on the difference in rates. You can do the same in order to increase your capital.
How to Start Investing for a Newbie?
There are several steps how to start trading on Forex. First of all, download the powerful trading tool on https://www.fxpro.co.uk/trading/platforms/mt4/desktop where one of the leading trading platforms is presented. Later you can:
– train with the demo version;
– start to be familiar with the trends that affect the change of currency rates;
– get to know the trading tools available (such as algorithmic trading tools, economic Forex calendar, technical and fundamental analyses);
– start initial trading of FX, metals, shares, etc.
In addition to the Forex market, you can increase your funds in other areas of activity, such as stocks, metals market, start-ups, issuing micro-loans at very high interest rates, stocks, bonds, binary options, mutual funds, high-income projects, trust management, online resources and so on.
Pluses and Minuses of Investing Through the Internet
Pluses:
• High passive income.
• Doesn’t take much personal time.
• Doesn’t require large starting capital, special education or connections with “the right people.”
• Easy to manage.
• Improves financial position.
• Allows you to work directly from home.
• Gives financial freedom.
Minuses:
• There is a possibility to run into non-trading risks.
What Are the Risks When Investing Online?
As mentioned above, by investing your money online, the assets into which we invest multiply. But, whatever the method was, absolutely in each of them there are risks and dangers. Therefore, when investing on the Internet, you are subjecting your online investment to always two major types of risk:
1. Trading risk.
Trading risk is the case of partial or complete loss of investment capital, because of the incompetent work of the manager (company) to whom you entrusted your money.
Example: You entrusted your investments to an aggressive manager who trades in a high volume of investors’ capital. And suddenly, during the next auction, the manager does not cope with the market, and partially (completely) loses your money. This case is called trading risk, as the loss of money occurred when working in the Forex market.
2. Non-trading risk.
It is a risk that has nothing to do with trading. This risk is the most dangerous group of risks that each investor may face, due to incorrect selection of the potential investment object, improper conduct of its investment activity (keeping its logins and passwords from private offices open for public access), and other uncontrolled cases of life.
Non-trading risk refers not only to the companies that the Internet investment sector offers us today. It can influence any company in which we place our funds: banks, dealing centers, microfinance organizations, investment funds, etc.
Example:
• Bankruptcy of the company.
• Hacking of the accounts.
• The economic crisis (for example, devaluation in 1998).
So, just now you have learned about what the investment online is and what risks it carries. As you can see, the advantages of investing online far exceed the disadvantages. Now it is time to embark on the path of the investor to begin increasing your capital.