How to start trading and tips
How to start trading and tips
If you want to get into the world of trading, you need to get a good dose of information before you start your first trade. As tempting as it may seem, don't be in a hurry. Getting started in trading requires a good education and information to identify opportunities.
In this short guide you will discover some of the most important tips on how to start trading and make a profit. We will uncover the most interesting aspects of trading and some of the most common risks you are exposed to.
Trading is exciting, but it has to be taken for what it is, and although for many people it is a fantastic way to make a living, there is a lot of misleading advertising that will try to disguise and tempt you into investing your capital without logic or reason.
What day trading is NOT
One of the main mistakes we make at the beginning is the concept and sense that we give it, What is trading for you, do you really know what it involves and how it works? Advertising does its job perfectly, but sometimes it distorts its true meaning. Trading is not about money, success, luxury or living on Wall Street, trading is a way of making a living that can even be done from your couch at home in your pyjamas, without an expensive suit or the luxuries we normally see.
You live in an interconnected world, if you are interested in baby clothes, all kinds of related ads will appear on your social networks tomorrow. However, this technology can turn against you if you don't apply logical filters and learn to differentiate between what is real and what has been designed exclusively to capture your attention. Trading means operating in the markets through their assets, with securities that are quoted and vary according to many conditions, both of the sector itself and of the environment that surrounds them. And it is precisely here that you need to pay particular attention to identify the opportunities and eliminate the distractions.
In trading, information is power.
To trade the different markets and types of tradable products that trading encompasses, you need to know about them. As well as understanding the financial concepts and how they are useful for your future investments.
There are countless terms and technical aspects that you must know before making your first move, because otherwise, you will have started an investment leaving it completely at the mercy of the randomness and value of a product that tomorrow could be drastically devalued. Today you have all the means and tools to get started in the world of trading, making an investment is extremely simple, but you should not confuse or apply this simplicity when you intend to make profits, these cost much more.
Understand how the evolution graphs of a certain value in which you want to invest work, trace its possible path and know the sector in which you operate. Keep yourself informed about current events and the big companies or countries that are directly involved in their market value.
Difference between Forex, cryptocurrencies, futures or shares, among others.
You have a lot of financial products at your disposal, and each of them operates in a different framework and market, trading and fluctuating in different ways. Learn what they are like, what they involve and what their possibilities are before you invest in them.
Always keep risk under control.
Trading involves investing and taking risks in a particular commodity. Assume that you are trading in a variable market and that, no matter how much control and knowledge you may think you have, there will always be a small risk that could spoil your invested capital. That's why you should know that keeping your trades controlled and insured is one of the essential rules for any day trader who wants to make a return on their portfolio of assets.
Do not invest more than 5% of your available capital in a single trade.
Diversify your portfolio, widen the range of options and allow your money to be active in different trades at the same time. The more control you have over the invested capital and its sector, the less risk you are exposed to.
Do you know about stop losses? It is obvious that if we were asked about how much money we want to earn as traders there would be no ceiling, however, what about the loss, how much money would you be willing to lose on a trade? We must know how to determine what is the maximum loss limit that we can assume.
Stop Loss allows us to warn our broker of the maximum amount of money we could lose if our asset depreciates. In this way, the system will block the investment, preventing us from losing any more money.
Choose the right broker to trade with.
And speaking of securing your investments, do you know how much the choice of the right broker influences when you enter the world of trading? Trading safely, knowing the state of the market in real time and not losing your head with the commissions of each trade you make. Choosing a suitable broker is one of the priorities of anyone who wants to take their first steps in the world of trading, both for the advantages they provide and for the security that comes from knowing that you are working with responsible companies.
The first investment you make will be precisely this choice, as you will entrust all your knowledge, skills and capital to invest in a broker, who will be responsible for executing and managing all the orders you process.
Remember that trading requires control, both of the asset you are trading and of any other external element that could condition your investment. The broker is precisely the tool you will be working with, understand now the important role it plays.
Real market and emotional control.
It is not bad to familiarise yourself with the interface of the software provided by your online broker with a DEMO account and practice without any risk, applying the knowledge acquired in trading courses, and prepare yourself for when you are ready to start trading.
Trading in the real market with the financial instruments of your choice will give you that tension that every trader needs to maintain every time they trade their assets and make new investments. If you abuse the simulators, you will believe that you are in total control of the situation and it will only encourage you to invest larger amounts when it is time to trade in the real market.
This results in loss of capital, despair, frustration and abandonment of an investment portfolio that, if managed correctly, could have generated a surprisingly good return, enough to prove to you that you were right to choose to start trading.
On the other hand, emotional control has to be an aspect that you must be aware of at all times. Both to make sure you do not make mistakes in your investment, and to motivate you to see that with good training, information and impulse management, trading can be a really profitable financial resource.
To put all your knowledge into practice, we recommend you open a DEMO account with NAGA which will allow you to have a DEMO account with $10,000 to make the trades you need without using real money. In addition, you will be able to discover the great benefits of Social Trading, and earn money while helping others to earn it.
Learn about Social TradingSocial Trading is a new system that gives everyone access to the world's best traders. You can follow top traders and automatically copy their trades. You make money when they make money with no trading expertise required. This is the Social Trading revolution.
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