“You Don’t Need a Doctorate to Succeed in Trading”

How has the Russia-Ukraine conflict affected the industry? What tools do you need to trade in today’s environment? And who is CFD trading really for? SquaredFinancial’s Executive Chairman Philippe Ghanem shares some interesting insights about trading in 2022.

What recommendations do you have for the novice investor with SquaredFinancial, especially during these tumultuous times?

The world is going through a significant period of uncertainty geopolitically and economically which has resulted in what can best be described as roller coaster markets. What all traders must do, and not only during tumultuous times, is have a good understanding of the products they are investing in and the platform they are using.

They should take their time to educate themselves with the products and services they are utilizing and trading. It’s like getting in a car; you need to know where to sit, how to steer the wheel, where and when to hit the brakes… you need to have all the information displayed in front of you and understand it.

Trading in such a volatile market can be an opportunity as much as it can be a risk. Investors should ensure not to over-leverage themselves, which means that they should not be overexposed to the markets to avoid suffering free-fall losses should they be on the wrong side of the market. Instead, they should be disciplined, accept their potential losses and be ready for them, because the risk of loss is always there.

What can you say to those who are afraid of entering the markets now?

There’s nothing to be afraid of. It’s a question of bid and ask in the markets, whatever your instrument is, whether stocks, forex, indices, cryptos… You just have to be ready for the market. We are going through plenty of changing news, Covid for the past three years, and the Russia-Ukraine war this year.

There will always be ups and downs. The world will always see changes. Investors who are new to markets may have not witnessed any of this before. They should be ready and well-equipped with knowledge and tools.

Technology has been transformational for us. Thanks to AI, Robotics, blockchain and social media, people’s perception, and reaction to what’s around them, to what’s in their everyday life, is no longer the same.

Everything is clearer. That’s where good brokers come in with what they can offer: a good experience and a long-term relationship. However, investors should be cautious about leverage and start positioning themselves in the markets, especially since the market is extremely liquid. If a trader is not happy, he can exit fast.

Is CFD investing suitable for unprofessional investors, those who have no background in investing, finance or economy?

People with no background in reading and understanding the markets shouldn’t trade. Zero background is already the wrong starting point. You can get knowledge and education from any reliable source, and resources are not scarce.

Trading CFDs is different as it has high risks with higher possible returns. It’s a good instrument if you know how to trade and if you are leverage savvy. Our role as brokers is to educate our traders and give them as much knowledge as we can. But no matter how much you want to educate, some traders would still want to take risks. So as long as you know your risks, you can trade anything.

How does SquaredFinancial adjust itself for both the needs of its veteran and novice investors?

There’s not much to adjust. We offer a clear and clean platform, and we’re always keen to improve our services and offerings. Our job is to make trading simpler, more professional, and informed. Our team is ready to educate, explain and support. That’s why we’re succeeding.

Around two years ago, we rebranded with a new vision. We are a group of experts and veterans in the financial markets, backed by technology, data, advanced trading platforms, and top-notch services. Traders are comfortable working with us because we guide them, we put them first, we care about their investment plans and want them to succeed.

There are many brokers, and many are still emerging, and the products are almost the same everywhere, but it’s the service, the platform, the team, and the support that make all the difference.

The way I see it, this industry is increasingly growing, and in the future, there will be a consolidation of companies, with fewer but bigger brokers. Traders should be cautious and very careful about whom they are dealing with. They have to do their due diligence because, at the end of the day, the investor should worry only about their trades and not their broker.

Does one have to be an analytical person in order to perform well in the CFD markets?

There’s nothing analytical about it. You don’t need a doctorate to succeed in trading. All you need is knowledge and access to information. As a trader, you get to decide if you want to be analytical. If you know the company or instrument you want to invest in, then you know when to go short or long.

Can you recommend to beginners how to learn and become better traders? What do you at SquaredFinancial offer in that sense?

We keep our clients informed, we don’t suggest or prompt them how to trade, or when to buy or sell. We help them make good trading decisions by making sure that all the information provided is clear and available to them.

To elevate our educational tools, whether analysis or performance, we partnered with Quant Insight to offer our retail clients exclusive access to AI-backed analytics and signals. It’s true that a trader should do his homework, do the research, and get all the information he needs to trade properly, but we, at SquaredFinancial, like many renowned and regulated transparent brokers, go the extra mile by offering as much information as we can too.

Eventually, our aim is to keep our clients and be their partner. We don’t want them to trade for a short period and leave, we aim to be long term greedy.