Their names are Fabrice, Benjamin, Charles, or Thomas. They are trainer-enthusiasts and members of one of the most well-known platforms in France when it comes to finding a teacher for any activity you want to practice. They live in Nice or the surrounding area and offer to teach you the basics of trading. This increasingly popular activity sometimes holds surprises for those who start without prior training. What topics are covered in these online or sometimes even in-person training sessions? Thatโs what weโve decided to present to you in this article.
Learning Financial Analysis
Financial analysis is the process of evaluating the stability and financial performance of a company by examining its financial statements.
To conduct a financial analysis, you can use various parameters such as revenue, profits, cash flows, and debt to evaluate a company’s financial health and forecast its future prospects. Through this analysis, you understand whether it is worthwhile to invest in the company.
Risk Management
Risk management in online trading is the practice of mitigating potential losses by diversifying investments and hedging positions.
Risk management also includes analyzing and understanding the risks associated with an investment, selecting appropriate risk mitigation strategies, and more.
Here, terms like “slippage” may be addressed. It is essential for you to know and master them. Are you wondering what slippage is now? Slippage is the difference between the expected price of a transaction and the price at which the transaction is actually executed. It can be caused by several factors, such as market volatility, lack of liquidity, or high-frequency trading. But we wonโt tell you more about it; the professionals will do it better than us!
Investment Planning
Investment planning involves creating a strategy to invest your money in order to achieve your financial goals. This could involve investing in stocks, bonds, and other securities, or investing in alternative assets such as real estate or precious metals.
To create an effective investment plan, you need to have a good understanding of the markets and how different types of investments perform over time. You must also be prepared to take some risks in order to be able to invest.
Portfolio Diversification
Portfolio diversification is a technique used to reduce the risk associated with investing in a particular asset category. By diversifying your portfolio, you spread your risk across different types of assets, reducing the impact a single investment can have on your overall portfolio.
For example, if you only invest in stocks and the stock market crashes, you risk losing a significant amount. However, if you spread your investments across stocks, bonds, and cash equivalents, and one of those markets crashes, your overall portfolio will be less affected than if you had invested all your money in a single asset category.
Want to start online trading? Remember that it is necessary for you to get trained before starting to invest real money in the markets!
