The key difference between trading and investing lies in duration. Investors look for long-term benefits whereas, the traders look for making short-term profits. The traders have the benefit of constantly changing financial assets’ prices. So, here are some tips that will teach one all about trading in Singapore.
Use the Leverage
Leverage is the capital borrowed to increase the exposure of the trader to his or her shares. It allows the traders to achieve a bigger position to earn a higher return when compared with the return gained by an investor on his or her original capital. However, it is a double-edged sword. If it can give big gains, then it can cause bigger losses too.
What types of instruments one can trade-in?
The most common instrument is forex trading. However, in today’s times, digital currencies have attracted the attention of a lot of traders.
Trading account
There are innumerable platforms that offer free trading account. However, one must read between the lines to ensure that the features or benefits are too-good-to-be-true.
These are tips are simple but vital to understand the basics of trading in Singapore. Use them before beginning one’s trading journey.