DotBig Investments: The Best Low-Risk Trading Options for Beginners in Israel

Today, more and more Israelis are trying their hand at Forex trading. Some of them truly succeed, while others quickly lose their last funds.

What are the options to avoid great trading losses? Proper risk management will help correct the situation. Beginners must choose low-risk trading strategies. From the blog, you will learn what low-risk trading is, how low-risk trading tools work, and what DotBig broker has to do with it.

Introduction to Low-Risk Trading for Beginners

It is crucial to learn the specifics of low-risk trading, especially for novice market participants. Low-risk funding is an investment with minimal risk of losing funds and income.

Such strategies help traders achieve stable profits over time. This is important not only for beginners but also for Forex experts. To do this, trading uses proven strategies, suitable tools, and the help of online experts, such as those on the DotBig platform.

What Makes an Investment Low-Risk?

There are no risk-free investments. Any market project involves a certain degree of risk. Simple math: the higher the potential return, the higher the investor’s risks.

However, this does not mean that all risks have a single degree. Today, beginners can receive professional support from the broker and learn how to invest with low risks.

The Best Low-Risk Trading Options on DotBig for Israeli Investors

DotBig is an international company whose services are aimed at investors with different initial capital and trading knowledge levels. The platform provides flexible investing conditions for Israeli clients, a wide range of assets, and a transparent financial policy.

Advanced trading tools are available to users on the DotBig investment platform. Here one can work with assets of the currency, stock market, indices, ETF funds, and CFD contracts. Moreover, online clients trade leading fiat and popular cryptocurrencies on the platform.

Exchange-traded funds (ETFs)

Exchange-traded funds are most popular among those who prefer high liquidity, better exposure, and tax efficiency. These tools are available at any time when the market is open. Experts note that the most profitable strategy when working with these assets is a long-term one. The ETF will provide an opportunity to buy assets of companies from different parts of the world.

Blue-Chip Stocks

If you’ve just entered the stock market and don’t know where to start, then blue chips may be a good investment option. And the DotBig exchange will help you with this. In the securities market, this is what stocks of well-known and large companies with a long history are called, which demonstrate stable results and often pay generous dividends. Blue chips also have high liquidity — they have a large intraday trading volume, meaning shares can be quickly sold or bought.

Government Bonds

Federal loan bonds are debt securities issued by the financial department. Thus, this department attracts money from investors, primarily institutional ones such as banks and management companies.

Investors who have bought government bonds regularly receive coupon income. Their main advantage compared to other bonds is high reliability. The credit risk of government bonds is lower than securities of large companies.

Mutual Funds

Mutual funds are a financial tool for long-term profit increases. It helps small and low-budget investment companies acquire and manage assets. Mutual funds are divided into several types depending on the profitability and the ultimate goal of the investor.

In this case, a trader may not buy out the entire asset of the company, but a certain share. DotBig Forex offers perfect conditions for forming an investment portfolio, and mutual fund stocks should be included in it.

Robo-Advisors

The DotBig exchange also provides an automatic trading feature using robots. These are programs designed to automatically conclude transactions based on predefined criteria and algorithms. Robo-advisors analyze historical data and the current situation in the financial markets, determine the most profitable entry points into a position, and conclude transactions without the intervention of a trader.

DotBig develops trading advisors that can be used in the broker’s web terminal. Professional software has these advantages:

• Speed and efficiency. Trading robots conduct deals at lightning speed, allowing users to benefit from the slightest change in the financial markets.
• Backtesting and optimization. All programs go through several stages of testing and are optimized during use. It allows traders to hone their algorithms and improve trading systems over time.
• Round-the-clock market monitoring. Automated programs monitor the markets 24/7. It allows traders to access DotBig services in different time zones.

Besides, when choosing a trading robot, ensure the program includes the basics of risk management.

How to Get Started with Low-Risk Trading on DotBig

To start with low-risk trading, new clients register on the DotBig website. The sign-up is accompanied by mandatory verification. DotBig requests proof of identity from all customers to combat fraud. To pass verification, you must provide:

• Scans of your passport/driver’s license.
• Copies of the utility bill.
• Details of the bank card to top up the deposit and withdraw funds.

When registering, one should provide a full name and current contact. If needed, a client may contact technical support to delete a valid account.

Risk Management Strategies for Beginner Investors

DotBig trading platform offers advanced tools and services that allow traders to manage risks:

• Stop-Loss

These orders automatically close the trade when the market moves against you by the specified amount, limiting potential losses. Forex traders use stop losses to reduce losses or lock in profits on an existing position. This way, they control their risks.

A trader can buy a stock and place a stop-loss order with a stop price 10% lower than the purchase price of the stock. If the share price drops to this level of 10%, a stop loss will be triggered and the shares will be sold at the optimal price for the trader.

• Take-Profit

Traders need to manage the risks of their positions, but they cannot do this in real-time by constantly monitoring the market. Using technical analysis, they track the price growth opportunities of a particular asset to take advantage of its potential.

• Trailing Stops

A trailing stop is a regular stop order that can be placed at a certain percentage or dollar distance from the current market price of a security. For a long position, the investor sets a trailing stop below the current market price. For a short position, it is higher than the market price.

A trailing stop is designed to protect profits by allowing you to keep a trade open and make a profit while the price is moving in favor of the investor. The order closes the transaction if the price changes direction by a specified percentage or amount in dollars.

Why DotBig is a Great Choice for Low-Risk Investing in Israel

Investors in Israel are provided with services for analyzing quotes, an economic calendar, a summary of the main financial market news, and technical analysis data. Besides, active traders can work with charting tools in trading terminals. All these options make it possible to minimize investment risks for Israeli DotBig exchange clients.

The broker has these advantages:

• support for various financial instruments (Forex, cryptocurrencies, stocks and others);
• choosing multiple tariffs for an invoice;
• demo account support;
• high leverage for some types of trades;
• simple and user-friendly trading interface;
• availability of training materials;
• online trading via the mobile app;
• high-quality support service.

Moreover, viewing DotBig reviews did not reveal any significant drawbacks. The platform is user-friendly; it features extensive functionality and a high level of customer service, so it deserves your attention.