Advices for new traders
To avoid falling into the traps and pitfalls of the financial markets, we have put together a concise and easy-to-understand guide for those about to start their journey as a trader.
Hone your knowledge of complex mechanics
Keep going for "good" results. Learn new strategies and delve into the subject professionally. It will help you gain new experience, make more significant trades, and increase confidence. Once you have grasped the basics, you can learn risk management, fundamental or technical analysis, and the psychology of decision-making.
What do you want?
Wait to start until you have a goal in mind. Yes, everyone comes into trading to make money, but understanding how much money, time, and effort you need are worth having a clear plan. There are several options: you can simply invest your savings and keep it as an investment, you want to try your hand at it, or you can get serious about trading and make it your source of income. The clearer your goal and time frame, the easier and quicker you can get what you want.
Keep a profit accumulation log
This will help you analyze your actions, find mistakes in your strategy in time, and keep track of statistics. For example, it can record stock exchange transactions, prices at the time, profits, current market trends, and even why you made the transaction.
Don't give up от on help completely
From time to time, it is a good idea to seek advice from an analyst or mentor. Even if you no longer fear every deal and know exactly what to do. An outside view can help you find new insights, learn about upcoming trends, and identify mistakes that were not available to your eye.
Study the markets and their instruments
All markets have different trading rules, trading hours, and trading tools. So before you start, you should decide what suits you best: futures, equities, foreign exchange, or crypto.
Experiment with strategies on the advice of an expert
Keep going even if you find a trading methodology you think is appropriate. Expand your professional horizon: try new markets, introduce new trading tools, trade at different timeframes, and analyze all innovations. This will help you 'stay current' because you need to find new solutions and implement them in your work. You need to be aware of what's going on.
A broker can help avoid beginners' mistakes
As well as acting as an intermediary between the market and yourself, a broker can also be a great financial advisor, helping you to reach your goals faster and guard against bad decisions.
Don't ignore training
There are plenty of courses available online for beginners. In addition, brokers themselves often develop training courses for their clients. Take advantage of this opportunity. Start with introductory courses that explain the terminology and working mechanisms. Remember that training is someone else's experience in an accessible format that will bring you up to speed and prevent the kind of trouble someone else has already committed.