Online trading is a viable career path, but it is not a get-rich-quick scheme

Digital technology has made the ability to trade in financial markets more accessible and attractive to young people.

Some young people are turning to online trading to supplement a steady income, while others have ambitions to make it a viable career path. The World Economic Forum (WEF) says there has been a rise in the number of young people trading online globally, with 70% of retail investors under the age of 45.

Roger Eskinazi, Managing Partner at Tickmill, says the biggest advantage of starting online investing at a young age is being able to take advantage of compound interest and the potential for long-term growth.

“People who start trading online at age 18 can build their portfolios and learn valuable lessons about how financial markets work along the way.”

Dedication needed

However, Eskinazi says young people should view online trading as a get-rich-quick scheme. He says there are opportunities to make a profit, but it requires time and focus. Good decision-making is also vital, he adds.

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He warns young people not to approach online trading with a gambling mentality. To become successful and build a future-proof investment portfolio, discipline, patience and perseverance are needed. These principles help to manage both profits and losses responsibly.

Because financial markets are volatile, online trading also requires someone who is willing to learn. Because major political or social events cause fluctuations in the markets, there is less stability compared to other industries.

Risk and reward

He says that every reward comes with a degree of risk. “There is no investment scheme that can realistically promise a high reward without a high degree of risk.” Successful traders must learn to balance the two.

To minimize risk, traders should conduct extensive research to make informed decisions.

He says that creating a trading plan and sticking to it will help. People are susceptible to emotions such as fear and greed. “Making emotional, impulsive decisions is one of the biggest pitfalls that traders have to overcome.” A trading plan will provide a clear outline of objectives and strategies for managing risk.

He believes that most young people are attracted to trading because the digital age has made it easier, more accessible and smarter. Those who understand how to use technology to complement their personal skills will have the greatest advantage.

He recommends starting with a demo account, so traders can test their online trading skills without any risk. This will allow you to practice trading in a simulated environment, using virtual money, that mimics real market conditions.

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