Beginner traders: 4 steps you have to make first
Photo by Adam Śmigielski on Unsplash
Have you heard that most beginner traders fail and quit early after they start? You might think that the sad statistic shows the toughness of the market, but it’s actually not. The reason for a high failure percentage is that most beginner traders think of trading as a lottery where they need to make stakes based on some feeling rather than an informed prediction. If you don’t want to be on the pity side, dedicate adequate time to follow the steps listed below. They will help you increase the number of successful decisions when you start speculating on Forex trading India, the USA, the UK, and any other market.
1. Get a trading account
Although it’s not recommended to start trading unless you learn enough to make conscious decisions, you need a trading account right away to get used to it and use a demo account for secure real-life practice. A good account by a trusted broker will also grant you access to exclusive research data and various trading benefits.
2. Read, read, read!
Both beginners and experienced traders must be on top of the market news and expand their knowledge bases on a daily basis. Here are the information sources to use:
- financial analytic articles and news reports;
- books on financial literacy and stock market;
- exclusive broker tutorials;
- seminars and webinars hosted by proven market leaders;
The more you learn about different aspects of the market, the better because you never know where the trading flow brings you next time. Any financial knowledge and experience can come in handy.
3. Train analytical thinking
Learning the basics of technical and fundamental analysis is a must-do step if you want to have an edge over those folks who underestimate the importance of one of the analysis types or both of them. Learning how to analyze the market with all its charts is the only key to making effective price predictions instead of guessing them based on non-comprehensive data. You should also be highly critical of the info you obtain and your personal conclusions as both can lead you to false emotional moves if not interpreted properly.
4. Practice
Knowledge is great, but it won’t work for you without real-life practice. Fortunately, you don’t need to train with a real-money deposit. Instead, you can use the demo version of your trading account to train your skills, get used to the interface, and test your first trading strategies in real-time market conditions. Eventually, you will learn how to interpret the information you learn and turn it into timely long and short positions of different duration. Once you feel confident enough (not negatively self-assured), test your fresh skills on your actual spot account to experience the real trading emotions and learn how to tame them and focus on facts rather than impulses.
Don’t stop learning
The rule of thumb for any trader is that there’s never too much knowledge and experience. Think of the info stored in your head as an instrument to lower the risks and increase potential profits as much as possible.