Perhaps you have recently heard of a financial professional who has made significant profits by interacting in the financial market. How complex is it? What knowledge must be acquired? What is required for trading? Together with FXGM ZA broker, we answer some of these questions.
To begin with, the first thing to understand is what a trader is, and what his or her objective is. Unlike an investor who buys shares for the long term, a trader has a short term horizon, and makes multiple buy and sell transactions, with the aim of making a profit.
In this FXGM ZA chart you can see the fluctuations in the value of the shares of BioNTech, the German biotech company that develops the vaccine together with Pfizer, and observe the constant ups and downs in a very short period of time, between 2:00 p.m. on February 18 and 5:00 p.m. the following day.
On this candlestick chart, which by the way is one of the tools a trader analyses, each line or candle represents a 15 minute interval.
This means that if there was a totally perfect trader, who would have been able to predict when to buy and when to sell in this 24 hour span, he would have made a lot of money on this financial asset alone.
Ultimately, that is what this trading business is all about, predicting trends, anticipating other traders, and buying or selling at any given moment as it is most appropriate.
Financial assets in FXGM ZA
At this South African broker it is possible to trade different financial assets, which we will detail below.
Foreign Exchange Market (Forex)
Traders in this sector enter into contracts to buy and sell the various currencies of the world. Some of them are the Dollar, the Euro, the Canadian Dollar, Swiss Franc, New Zealand Dollar, South African Rand, and many others.
In this case traders choose FXGM ZA broker to trade metals (Gold, Silver, Copper, Zinc, Nickel), energy products (Crude Oil, Natural Gas), or crops (Soybeans, Corn, Sugar).
It is worth noting at this point that beyond your own knowledge of trading, it is interesting to operate in an area in which you have specific knowledge, to increase the likelihood that you will be successful.
At FXGM ZA it is possible to trade the most important cryptocurrencies on the market, such as Bitcon, Litecoin or Ethereum. At this point, it is important to note that online brokers operate with a mechanism called CFD, (contracts for difference) where you are not buying or selling Bitcoins, nor Gold or Euros. Instead you are trading the prices of these “underlying assets”, and not the assets themselves.
FXGM ZA also has dozens of companies that can be traded, and from different industries. Some of them: Adidas, Adobe, Alibaba, Amazon, Apple, Astrazeneca, Banco Santander, Chevron, Juventus, Peugueot, Sony, Spotify, Tesla, and many others.
Stock market indices weigh the value of major companies traded on their stock exchanges, and are a reflection of a country’s economy, or a specific market sector. FXGM ZA users who choose indices will have among their alternatives the stock exchanges of Nasdaq, IBEX 35, CAC40 and more.
Ten protected positions in FXGM ZA
FXGM ZA broker has a free insurance for new users, which prevents them from possible losses on the first trades they make. It is a way of accompanying new users in their learning process.
Technical Analysis Tools at FXGM ZA
Technical analysis is one of the most widely used tools available to a trader. The advantage of a platform like FXGM ZA, is that it provides the results with a tool called Autochartist, which based on automatic algorithms is able to identify bullish or bearish trends, and predict future prices.
In other words, it is an easy-to-use scanning tool, which helps to analyse the market and highlight the best opportunities.
FXGM ZA concluding remarks
Trading in the financial market is not trivial, it requires knowledge, advice from successful specialists which is not always easy to obtain, try out, and surely maybe be wrong more than once. That is why many people venture into financial trading without sufficient financial knowledge and consider the broker they use to be a scam, when in fact they do not have sufficient knowledge. For more information, you can check FXGM ZA reviews here
As a final message, trading is a speculative activity in which there are successful professionals who earn large sums of money monthly, but it requires both theoretical and practical learning for those who are starting out. It is possible to go down this path, but be careful to analyse each investment, as you will not become an expert overnight.