You might see a lot of people on the internet saying the made millions without knowing anything about trading and it might be actually true sometimes, but what these people don’t tell you is how they managed to make money, for that reason we prepared 5 important trading tips to help you get started.
Many beginner traders tend to lose money for a few simple reasons: they don’t know how to use the platform the choose, and they risk more than they can afford. Most of the professional investors won’t share their secrets for traders. that’s why we have prepared a list of 5 things you should know before trading to help you avoid unnecessary risks and make profit on your first trades on Forex, Cryptocurrency or stocks.
1. Find the right platform and broker for you:
This is the first and if not the most important thing you should know before starting a successful trading career, as it will either help you make that first million or make you lose your money and time. it is important to choose carefully a good broker and see if they have user-friendly platform for you.
These days is not too hard to find brokers, but some of them are not so good. Always choose renowned and regulated brokers, especially if they have profitable and consistent services.
2. Have a realistic understanding of your profit and risk limits:
Obviously, you want to become a millionaire trading on cryptocurrency and Forex, but even having a top broker by your side won’t be enough if you don’t set your own limits and have realistic approach to your trades. It’s not hard to make money but there isn’t magic button to do it.
Money management is really a big deal. Whether you want to double your account in 1 week or 2 days, having realistic expectations of a trading account is imperative and it prevents you from taking unnecessary risks. A good broker will help you define your stop loss limit and have a better understand about right time to take profit on your trades.
3. You should know how to read charts properly:
By learning the probable movements in the candlesticks and the general direction of the instrument you are looking at, you can make a more informed analysis of where the price is likely to go, therefore make profit with your trades.
Some brokers provide educational materials and their experts can provide good insights and private trading sessions so you can make more educated decisions and actually take profit instead of trading in the dark as it is common with other brokers.
4. Understand how News affect price:
Once you know about the news and how it effects price, you can learn which ones to avoid, and which ones you can trade through. For example, if your trading on forex, the news about Brexit or U.S. elections can swing the markets easily, which can be either good or bad for you depending on how you define your strategy.
Be aware of how major events can impact your trades and you will be able to maximize your profits and reduce risks, especially on cryptocurrency as they are quite volatile.
5. Know more about Support and Resistance:
You should definitely know more about support and resistance as it will also help you to identify a trend, and where to put stop loss, and take profit. It will give you an edge when making decisions near the key levels. Imagine you decide to buy a stick and then after doing it you realize it was probably going to drop 10 cents – by knowing and analyzing these levels you can eliminate a lot of rookies mistakes.
Make money trading is not rocket science, it is more about having discipline, be willing to learn and also having a solid broker to give support to your trades. Now you have read the 5 things you should know before trading you can get started trading forex, cryptocurrency, stocks, indices and more on all major markets with ease.
And remember : you can only make money if you really want to make it.