We’ll see the most important tips you should know if you want to become a trader! The topic will be what is needed to start, keys to start in the world of trading. And some of the mistakes that are made at the beginning that are quite widespread among most people.
Using demo accounts is super important!
The first important tip that we will give you is about the demo accounts. It is essential that before you want to use real money you practice a strategy on a demo account. The best is that most of the demo accounts are free! And you can use them as long as you want. You need to adapt well to using the market practicing with your demo account. So, practice as much as you can and take experience.
Do not trade large numbers of trades
This is super important. Wanting to carry out a large number of operations thinking that the more we operate, the more money we are going to earn. At the beginning you should apply a lot of observation, study trends, patterns, indicators, and operate with very small amounts of money.
Think that this is a game of probabilities, the more operations we make, the more likely we are to lose money. Specially at the beginning. Therefore, your approach should be to reduce the number of operations as much as possible. And increase the quality of each one of them.
It is very important that you do not listen to the broker who tells us precisely the opposite. Every time you open or close a position, you pay a commission to the broker, that is a business. If you don’t operate the broker doesn’t make any money and for this reason it is constantly bombarding you with free courses. So, you must get education first, so you do not lose your money.
Important tip! Don’t start trading Forex
A third thing that people usually do when they start trading is to start operating in the Forex market. If you want to buy coca cola shares, for example. Then you go to the stock market and if you want to buy euros or dollars, well you go to the Forex market. As simple as that.
What is the problem with the Forex market? It is the most liquid and the most volatile market. This also makes it the most dangerous! Specially if you are a beginner. Then, do not start trading in the foreign exchange market. Start in the stock market, which is a much calmer market and will give you more room to think and make decisions. One tip is to find a quiet place where you can be alone. And that allows you to make good investment decisions!
You don’t have to have a lot of money to start!
Another false belief is that to start trading we must have a lot of money. Do not believe that! It is the opposite! If we have a lot of money, we must use very little. At the beginning we make mistakes and, in this business, making mistakes means losing money.
For that reason, our goal at the beginning it is not going to be about making money. It’s about learning and gaining experience. For example, if we use excessive leverage in the first operations carried out, surely all the money in the account will be lost. But if, on the contrary, we have the risks controlled, small amounts will be lost. And the best is that you will gain much more experience. You will learn from mistakes, and you will be able to continue trading. This is super important!
Sometimes it is not fully understood that trading and investments are a business. They do not have the form of a store, or a company. But they are a business and, therefore, we have to treat it as such!
This will not make you a millionaire overnight, but you will be able to earn a lot of money. You must have a long-term vision because this is where success is hidden! And, along the way you will have to continue training, learning, and gaining experience. So, believe in yourself and understand that abundance and prosperity come at the end and not at the beginning.