Welcome to the exciting world of online trading!
If you are new to the world of investing and want to learn how to invest like a pro, then E*TRADE is one of the best platforms that can help you achieve this. With a very easy to use interface, a wealth of educational content and great trading features, E*TRADE is a great place for anyone who is new to the trading world and wants to try it out.
The Essentials of Online Trading
Before delving into the specific features that make E*TRADE special, it might be helpful to define what online trading actually entails. Online trading is the process of buying and selling financial products such as stocks, bonds, and options through an online platform. It provides everyone with a chance to work in the financial markets and gain profits.
Let’s start with the basic definitions that will help you understand the key terms:
- Stocks are a type of security that represents ownership in a company; when you buy them, you own a part of the company.
- Bonds are financial instruments that are, in fact, the loans that you provide to the governments or corporations. When you purchase a bond, you are lending money to the issuer, who will repay it together with interest over time.
- Options give you the right, but not the obligation, to buy or sell a certain asset at a specific price by a certain date.
Why Choose E*TRADE?
Now that you have a general idea, let’s see why E*TRADE is suitable for beginners:
It has a very easy to use interface
One of the strengths of E*TRADE is that it has a very simple layout that is easy to use for new users. The simplified layout ensures that you can easily identify with the major functions and make trades easily. Whether you are using the desktop platform or the mobile application, you will notice the simplicity and clarity of the design.
A wealth of educational content
What makes E*TRADE stand out is that it offers a wide range of educational content. You can find a large number of articles, videos, webinars and tutorials designed to help you understand the basics of trading. The information is available for both visual and textual learners.
For example, their “Quick Takes” video series offers short explainers on different aspects of trading, which can be useful for those who are looking to gain more knowledge about trading.
It has a powerful trading platform
E*TRADE gives you access to many tools that can assist in making a better investment decision. You get market prices, charts, and analysis tools that help you analyze the market and find potential trades.
One feature that may be especially helpful is the ”Strategy Scanner” that helps generate ideas for options trade based on the client’s risk tolerance and market expectations – a great feature for the new options traders.
How to Start with E*TRADE
Let me show you the process that will help you to start.
Creating an Account
The first thing one has to do is to create an E*TRADE account. Fortunately, this can be done within a few minutes and fully from the comfort of your home or office. You will be required to enter some general information like your name, address, and social security number. E*TRADE is committed to your privacy and has employed the latest encryption technology to protect your data.
Funding Your Account
Once you have created your account, you will be able to deposit money into it using bank transfers, wire transfers or checks. Choose what is most convenient for you and then follow the E*TRADE’s procedure on how to deposit money into your account.
Browsing through the Site
With your account funded, you can spend some time getting to know the E*TRADE platform. Become familiar with the various features and tools that are available to you. They also have a demo account where you can practice trading with play money–a great way for new traders to learn without risking their money.
Using the Educational Resources
As already mentioned, E*TRADE is rich in educational content. Use these to enhance your trading knowledge starting from the basics and progressing up to the advanced strategies. The more you know, the better position you will be in to make the right investment decisions.
Case Study: John’s Experience with E*TRADE
Here’s how, in theory, John’s journey with E*TRADE may have looked like:
John is a recent college graduate who wants to invest in the stock market but has no idea where to begin. After some thinking, he decides to create an account with E*TRADE.
John makes his first move by exploring the educational resources available on E*TRADE. He watches a number of videos, reads about fundamental and technical analysis, and even attends a webinar on options trading.
With the knowledge that he has gained from the tutorials, John gets to experience E*TRADE through its demo account and practices trading without having to risk his money. He is able to find out how to place different kinds of orders and how to analyze stock prices.
When he is ready, he deposits money into his E*TRADE account and steps up to actual trading. Equipped with the knowledge that he has gained from the educational material and using tools like the Strategy Scanner, he is able to identify potential options trading signals.
As time goes by, John develops his skills and improves his performance. He remains learning and improving his strategy and the resources that E*TRADE provides to him. With each good trade, he gains confidence and makes profits consistently.
