So, you have decided to become part of the trading space? Whether it is forex, cryptocurrency, stock or any other asset that has drawn you in, you know that trading doesn’t involve a lot of barriers to entry. This is part of the appeal of this profession and also the fact that you can get a high return on investment. Its flexibility is also a major reason why a lot of people have chosen to use it to make a living. But, you have to understand that trading can go both ways; you can earn solid returns or you can make heavy losses. It all depends on how you get started and if you do all the necessary things needed to help you succeed.
When you are a newcomer, all of it can seem quite overwhelming and you don’t really know what to do. Are you looking for answers? If yes, you have come to the right place. There are some important things that all newbie traders should do in order to survive and make it in this world. Check out what they are:
- Know your charts
Before you sign up with a ‘get rich quick’ scam or make any other common mistakes, you need to know your charts. Trading is not like gambling; it is not just about your luck when you are trading an asset. You need to have charting tools and applications by your side if you want to profit from trading. There are candlestick charts and various others that are used by traders for getting the big picture. Brokers like HFtrading understand the importance of these charts and ensure their clients have access to some of the best ones to make their decisions.
- Get familiar with trading strategies
After you have chosen your charts, you need to know that it will take time to understand them. You have to get familiar with them and then choose a trading strategy. It is important to remember that there is no strategy that can promise you a 100% win rate. Developing a strategy involves using a set of indicators with your charts. There are a number of trading strategies out there and you can check out several of them before you choose one. You can test multiple strategies before you make a decision, but where do you test them? The next step will help you in this regard.
- Do some practice
After you have shortlisted the possible strategies that can be used, it is time to test them and this can be done through a demo account. There are various brokers in the market that provide demo accounts for free. These accounts give traders a chance to use virtual money and trade in a simulated environment, which is very much like the real market. This is the perfect opportunity for you to find out which strategy is the most promising one for you and can give you the kind of results you are after.
- Improve your skills
Now that you have found your strategy, it is time for you to start learning from your successful trades as well as your mistakes. Start keeping a trading diary in which you take note of the different trades you make in the demo account, along with the outcome. Analyze your trades on a regular basis to figure out where you went wrong and why you lose a trade. Do the same with winning trades because that will help you know what you are doing right. This feedback is very important in shaping your strategy so it suits your trading style and risk tolerance.
- Select a broker
Even if you earn millions in a demo account, they are worth nothing. Sooner or later, you have to start live trading and for that you need a broker. This is an important decision and you need an authentic broker, like HFtrading, to help you begin. There are some scam brokers out there and also some of those that don’t really offer any proper services. Make sure you consider different features and do a comparison before you make your decision.
Every newbie trader should follow these steps in order to begin their trading journey the right way.