If you want to enter the world of trading, before launching yourself with the first operation you must acquire a good dose of information. As tempting as it may seem, don’t be in a rush. Starting to trade requires good training and information to identify opportunities.
In this little guide you will discover some of the most important keys on how to start trading and make profits. We will discover its most interesting aspects and some of the most common risks to which you expose yourself.
Trading is exciting, but it should be taken for what it is and, although for many people it turns out to be a fantastic way to make a living, there is plenty of misleading advertising that will try to make up and tempt you to invest your capital without logic or reason.
What day trading is NOT
One of the main mistakes we make at the beginning is the concept and meaning that we give it.
what is trading
for you? Do you really know what it involves and how it works? Advertising does its job perfectly, but on some occasions it significantly distorts its true meaning. Trading does not imply money, success, luxury or living in
wall street
trading is a way of making a living that can even be done from the sofa at home and in your pajamas, without an expensive suit or the luxuries that we normally see.
You live in an interconnected world, if you are interested in baby clothes, tomorrow all kinds of related ads will appear on your social networks. However, this technology can turn against you if you do not apply logical filters and learn to differentiate what is real from what has been designed exclusively to capture your attention. Trading means operating in the markets through their assets, with values that are listed and vary according to many conditions, both in the sector itself and in the environment that surrounds them. And it is precisely here where you have to pay special attention to identify opportunities and rule out distractions.
In trading, information is power.
To operate in the different markets and types of listed products that this term encompasses, you must know them. As well as understanding financial concepts and how useful they are for your future investments.
There are countless terms and technical aspects that you should know before making your first move, because otherwise, you will have started an investment leaving it completely at the mercy of the randomness and value of a product that could be drastically devalued tomorrow. Today you have all the means and tools to get started in the world of trading, making an investment is extremely simple, but you should not confuse or apply this simplicity when you try to get benefits, they cost much more.
Understand how the evolution graphs of a certain security in which you want to invest work, trace its possible path and know the sector in which you operate. Stay informed about current events and the large companies or countries that are directly involved in their market value.
Difference between Forex, cryptocurrencies, futures or stocks, among others.
You have a good number of financial products at your disposal, and each of them operates in a different framework and market, trading and fluctuating in different ways. Learn what they are, what they imply and what their possibilities are before investing in them.
Always keep the risk under control.
trading involves
invest and risk
on a given product. It assumes that you operate in a variable market and that, however much control and knowledge you may think you have, there will always be a small risk that could ruin your invested capital. That is why you should know that keeping your operations controlled and insured is one of the essential rules for any self-respecting day trader to obtain a return on their asset portfolio.
Do not invest more than 5% of your available capital in a trade.
Diversify your portfolio, expand the range of options and allow your money to be active in different operations at the same time. The more control you have of the invested capital and its sector, the lower the risk exposed.
Do you know the Stop Loss? It is evident that if we were asked about how much money we want to earn as traders, there would be no limit, however, what about the loss? How much money would you be willing to lose in a trade? You have to know how to determine what is the maximum loss limit that we can assume.
Stop Loss allows us to notify our broker of the maximum amount of money that we could lose due to a depreciation of our assets. In this way, the system will block the investment, preventing us from continuing to lose money.
Choose your broker well to trade.
And speaking of insuring your investments, do you know how much choosing the right broker influences when entering the world of trading? Operate safely, know the state of the market in real time and not lose your mind with the commissions of each operation you carry out. Choose a suitable broker It is one of the priorities of anyone who prides himself on taking his first steps in the world of trading, both for the advantages they provide and for the security generated by knowing that you work with responsible companies.
The first investment you make will be precisely this choice, since you will entrust all your knowledge, skills and capital to invest in a broker, who will be in charge of executing and managing all the orders you process.
Remember that trading requires control, both of the asset with which you operate and of any other external element that could condition your investment. The broker it is precisely the tool with which you will work, now understand the important role it has.
Real market and emotional control.
It is not bad to familiarize yourself with the interface of the program provided by your online broker with a DEMO account and thus practice without any risk, applying the knowledge acquired in trading courses, and prepare for when you are ready to start trading.
Trading in the real market with the financial instruments of your choice will provide you with that tension that every trader must maintain every time he trades his assets and makes new investments. If you abuse the simulators, you will believe that you have total control of the situation and it will do nothing but encourage you to invest larger amounts when it comes time to operate in the real market.
This translates into loss of capital, despair, frustration and abandonment of an investment portfolio that, managed in the correct way, could have generated a surprisingly good return, the necessary one to prove to you that you did the right thing by choosing to start trading.
On the other hand, emotional control must be an aspect that you must take into account at all times. Both to make sure you don’t make mistakes in your investment, and to motivate yourself by verifying that with good training, information and management of your impulses, trading can be a really profitable financial resource.
To put all your knowledge into practice, we recommend you open a DEMO account with NAGA that will allow you to have an account DEMO with $10,000 so you can do the operations you need without using real money. In addition, you will be able to discover the great benefits of Social Trading, and earn money while helping others to earn it.
Trade channel.