Advanced trading platform in Hong Kong
Over the past decades, Internet technology has developed at a rapid pace. Many real actions in our lives, such as walking to the store, buying a train ticket, working in the office, etc., have become displayed online, virtually. To buy food, clothes or pay for any services no longer need to go to stores or banks. It's enough to have access to the Internet and a phone or computer. Modern online technology allows you to study and receive certificates of completion from the comfort of your own home via the Internet.
Access to investing, as well as the process of investing itself, has also advanced for the better. We can now invest our capital online, anywhere and anytime. At the moment there are many different online trading platforms developed by brokerage companies. The platforms give us a unique opportunity to make transactions online in the stock market.
If you start working on the platform right away, there will be a lot of questions. A lot of incomprehensible words will make it difficult to navigate the situation. But if we understand and study these topics in depth, we can better understand the specifics of the stock market and start investing our first investments.
Let's understand what a trading platform is, what an advanced trading platform in Hong Kong should be, and how to get started on the platform.
A trading platform is a special software that is used by an investor to conduct transactions on a stock exchange.
The trading platform is available on all gadgets, which makes it possible to invest anytime and anywhere. It is important to opt for an advanced trading platform. It should be reliable, multifunctional, with good feedback from users. Tools on the platform should be convenient for traders to provide maximum comfort for operations on the market.
When choosing an advanced trading platform, pay attention to the availability of training on the platform. It may be video lessons, introductory articles, the possibility of opening a demo account, testing, etc. Brokerage companies are developing new features on the platform, features equipped with lots of useful information for trading. High competition in the choice of online platforms forces to think up something new in order to win the trust and favor of the trader. This is how an advanced trading platform appeared on the market in Hong Kong.
When choosing an advanced trading platform, pay attention to a number of characteristics:
- The presence of multiple tools for market analysis;
- The availability of tutorials on the platform;
- The ability to open a trial demo account;
- Availability to different financial markets;
- Availability of indicators for technical analysis;
- Possibility to open stop orders;
- Flexible settings, bright and memorable program interface.
We have considered a number of characteristics when choosing a trading program, the basic concepts of the platform, which should be familiar to anyone who wants to make money in the stock market. However, knowledge alone is not enough for successful trading. It is also necessary to understand such things as fundamental and technical analysis. Studying the basics of these two analyses will allow you to earn a steady income and avoid making typical mistakes that beginners and sometimes seasoned investors make.
Technical analysis is a set of tools for forecasting the price of an asset (shares, currencies, securities) based on its past behavior through the use of technical methods: indicators, charts, etc. Technical analysis is necessary in order to process previous price values, analyze and make future forecasts about how prices will move in the future. For this purpose, investors are aided by formulas, algorithms, indicators, etc. Thanks to them, a set of prices turns into a logically constructed graphical structure.
There are a number of methods of technical analysis. One of the main ones is indicator-based, which helps you identify this or that trend. You choose technical indicators on an investment platform: various lines, based on various formulas, which make calculations with the price based on previous quotes. These indicators help visually determine when it is best to open a deal, you can assess the current situation from the trend cycle side. Using such indicators is easy. It is necessary to choose the necessary one on the toolbar and select it.
While lines and levels are basic analytical tools for technical analysis, indicators are basic. These are various lines (one, two or several), which are applied to the price chart (or appear under it). They are necessary to help investors understand what is happening on the market.
There are various groups of indicators. Among them, let us distinguish:
- Trend-following indicators. They help to determine the direction of price movement, but at a quiet market they are inefficient;
- Oscillators - indicators which show how much the price has deviated from its average value, and help to determine periods of trend reversal;
- Volumes - take into account the total number of buy and sell deals for a certain asset;
- Bill Williams indicators - developed by the outstanding mathematician and trader;
- Psychological - the behavior of the crowd at the market.
The fundamental analysis is carried out on the basis of news and economic statistics, while the technical analysis is based on securities charts.
Political, economic and even seasonal factors are closely connected with trading, and regular studying of them and their usage for determination of future prices is called fundamental analysis.
To forecast the market behavior in general, it is necessary to use the tools of fundamental analysis. Global economic and political events influence the national currency rate.
The purpose of fundamental analysis is to help the investor prepare for unexpected price changes by understanding the reason why this happens (mostly external).
Events in fundamental analysis include the following:
- economic, political and social phenomena;
- general market sentiment towards a particular country;
- natural disasters, conflicts between countries;
- presidential elections, referendums, publication of important statistics.
Where can we get all this data about world events? Certainly from financial analysis and news, company reports, the economic calendar, central bank rates, etc.
So with a fundamental analysis we can look at the whole economic picture and forecast the market movements.
Stop orders are becoming more and more popular among investors. But what does this concept mean?
Stop order is a type of exchange order, which is pending for the automatic transaction on purchase or sale of the asset when the specified value is reached, in order to insure against losses due to the negative movement of the exchange rate. In other words, it is a type of pending exchange order to buy above the current level (Buy Stop) or below the current price (Sell Stop).
When trading at financial markets, there are always risks. And Stop Order - is the main tool for full and conscious dealing with these risks. No investor ignores the use of Stop orders.
Stop Loss and Take Profit
You can manage your investments with the help of whole techniques - take profit and stop loss. They allow you to save and multiply funds in your account. Stops and Profits work on the principle of the pending orders, when the price passes certain levels. By placing these orders, the trader deliberately limits the amount of profits and losses.
Stop-loss is a direct instruction from you to your broker to close the transaction when the price reaches a certain level of growth or decline.
Take-profit is an order to the broker, specifying the exact price at which the deal will be closed automatically with a predetermined profit value. In other words, you indicate the price at which the broker must close your deal, and bravely walk away from the computer screen. You will receive a certain amount of profit from the transaction, capped at a profit.
If stops limit the amount of losses, then the profits limit the amount of profits.
Stops are set at the maximum loss level, which is determined in advance within the framework of your own risk management. The purpose of stops is to insure the risks. And it is especially important in short-term trading, as traders with this specialization risk much more than medium-term and long-term traders.
Where to Start? How do I sign up for an advanced trading platform?
Investment platforms allow the average citizen to quickly and easily sign up for a program. To do so, go to the brokerage company's website, find the "registration" section. Then fill in the registration form, specifying your data - user name, e-mail box and sometimes a cell phone number. After completing the form, you must confirm the registration by clicking on the link received by e-mail, or with a code sent to your phone. That is all. A few minutes of registration time, and you are a user of an advanced trading platform in Hong Kong.
Trial Demo Account
A copy of a real account on the platform is called a demo account. It is provided by the platform for practical training. The program credits the demo account with some fictitious sum for carrying out test operations on the market. It is very convenient to try your hand at investing, make currency transactions, buy/sell assets, and all without the risk of losing your money. Naturally, it is impossible to withdraw funds from such a demo account.
Deposit and withdrawal
For real transactions on the online platform a real account, which needs to be funded. For its activation it is enough to deposit some dollars. It is necessary to press the button "make a deposit". The program for trading will give you the opportunity to deposit to your account in several ways - it can be through a bank card or through online payment systems. Withdrawing funds is also not difficult.
Advantages of Advanced Software
Advanced online platforms offer investors a number of options to customize the program to their individual needs using flexible settings.
The online platform introduces us to settings for selecting chart colors, backgrounds, number, location and size of windows on the screen, chart display types, etc.
Another advantage of the platform is the availability of training, video lessons and the ability to open a demo account.
Exchange of information between market participants, online chat and communication in groups is useful both for beginners in trading and for professionals.