The number of businesses and corporations deciding to allocate parts of their funds to increasing profits through trading is rapidly growing. With a huge selection of established online brokers providing business accounts with access to all of the world’s top markets including forex, stocks, commodities, and cryptocurrencies, business trading is becoming more and more lucrative.
Unfortunately, most of these businesses aren’t making the best of the situation, and there seems to be two main issues. The first issue happens when a company decides to start trading with a business account and uses someone (usually from finance) who is already hired at the company to handle the trading, even if that person doesn’t have the skills or experience needed to succeed. Unsurprisingly, this often leads to a catastrophe.
The other issue is when businesses hire actual trading professionals but then let them do whatever they want without overlooking their processes, methods, and progress. The problem with that is that there might be things this professional doesn’t know about that can hurt your potential outcome.
In order to combat these two issues, you need to be aware of the broker you use and all of the tools, features, and benefits they provide. By doing so, you can either learn how to trade (or have your finance team do it) or you can use the knowledge to try and influence, or at least have an open discussion with, your professional trader.
Tips To Optimize Your Opportunities
Today’s online brokers are technological masterpieces that have been designed to be efficient yet easy to use, and they provide their customers with more features and tools than most people think.
Stop-loss
In case you decided to hire a professional trader, you can skip this step because all traders that know what they’re doing use stop-loss. Now, if your trader isn’t using this, you can assume that it’s a sign of their incompetence and you should find a new one.
If you’ve been put in charge of a business trading account and you’re not sure what to do, stop-loss might just become your best friend.
A stop-loss is a feature that you activate when opening a position that will help you close that position based on preset data. This is done to avoid unnecessary losses and to lock in profits at a certain price. The important thing is that it will help save you time and give you a great insurance while trading.
Demo Account
A demo account is exactly what it sounds like; a trading account that you can use to practice trading without losing money. By trading with virtual funds instead of real money, you get the chance to trade under real market conditions, but without risk. It’s the perfect introduction to trading, and it’s a great way to get to know an online broker before you start spending real money.
Even for professionals, a demo account can be useful, and most often it’s used to practice new strategies and techniques, show examples to others, or search for the next opportunity.
Alarms
An alarm is tightly connected to stop-loss but it’s also kind of the opposite concept. A trading alarm is a setting that you can put on pretty much any instrument that an online broker provides. The aim is to analyze an instrument and find a pattern where you would be willing to buy or sell it. With that done, you place the alarm on the said instrument for the said market conditions where you want to invest.
That way, when the asset reaches the preset market value, you will be notified so that you can get to the brokers fast, evaluate the situation, and open your position. That also means you don’t have to spend all day following one specific instrument while potentially losing out on other opportunities.
Education
Unsurprisingly, trading is difficult, and even if you won’t be doing the actual trading, you should have basic knowledge of how it works. The quickest way of gaining that is to educate yourself.
Luckily, most of the top online brokers that we’ve mentioned do provide educational materials for new and more experienced traders which will really help you close the gap on the best of the best. It can be as simple as an article or a short video, but most modern brokers host full-blown events and webinars where you get to learn from professionals.
Video – What do Traders do?
This MBN (Market Business News) video explains what traders do. They buy and sell (trade) goods or services. Stock traders or forex traders, for example, buy and sell stocks or currencies (respectively).