How to Use Online Trading to Boost a Retirement Nest Egg
There is a common misconception that online trading requires deep pockets and a wealth of knowledge. The truth is that it requires neither. Anyone can have a go at online trading. All you need is a bit of spare cash, a ‘can-do’ attitude, and a keen interest in the finance, economics, and politics.
Royalty Free Photo
Fluctuations in currency prices are fuelled by macroeconomic data. Take, for example, the presidential election campaign running in France right now. Following the first round victory of the centrist candidate, Macron, over his closest rival, Far Right candidate, Marine Le Pen, the Euro hit $1.0940 overnight, a five-month high. Many experts predicted this would happen, so savvy forex traders have probably made a killing in the last few hours.
Open an Online Trading Account
To be successful in online trading, you need to be hyper-aware of what’s happening in the world. You also need to open a trading account on a reputable platform such as Oanda.
The easy accessibility of online trading makes it perfect for amateur investors looking to boost their retirement nest eggs with some extra cash. Instead of stashing your savings in an IRA, make your money work a bit harder. These days, headline interest rates on savings accounts are a pittance. It will take years to achieve a decent pot of money, and with retirement on the horizon, you can’t afford to waste time.
Set Aside a Pot of Money for Online Trading
Set aside a small amount of money each month – money you can afford to lose if necessary – and use this for your online trading activities. To begin with, open a demo account and practice your techniques. Decide which financial markets you are interested in – bonds, ETFs, futures, forex, etc. and devise a trading strategy.
There are plenty of useful resources online to help beginners learn the art of online trading. Educate yourself on the complexities of forex, ETFs, bonds, and commodities. It’s easier than you think!
Build a Balanced Portfolio
If your appetite for risk is very low, build a balanced portfolio, so you spread your money over a wide range of investment vehicles. For example, invest in gold, buy a few stocks and shares, bonds, and then try forex trading with the balance.
Be realistic about what you need for retirement. Do you want to ‘get by’, or would you rather have enough disposable income to tick off every item on your bucket list before it’s too late?
Start small and think big. A comfortable retirement can be yours if you are willing to speculate to accumulate.