To understand stock trading, let us look at two friends and their story.
They both were friends since childhood and had the same interests. They even went to the same college. One had good grades while the other one was just a mediocre student, barely passing the semesters.
The guy having good grades had a good placement on the campus recruitment drive, and the guy having fewer grades had to look for a mediocre job. The academic guy landed a job worth $200,000 a year while the mediocre had to settle for a mere $50,000.
Fast forward to 20 years, they both meet at a party. The well-to-do guy in a college walks in and sees the mediocre walking in an Armani.
Now this person is stunned. What did he do wrong that the other person did well?
Turns out, our mediocre dude who couldn’t pass his semesters was saving little each month and investing in the stock market as an active trader for the past 20 years. All his savings were amplified, and that landed him the things he wanted in life.
Learning here is that it doesn’t matter how much you make but what matters is how much of it you can retain. How much it is saved and then invested properly.
People can save their money and hedge it in terms of gold. But there has to be an underdog mention, and that is stock trading. Stock trading is something that everyone should try at least once in their life and experience how good it is.
Stock Trading Ultimate Plan for Beginners:
Finding the Right Broker For Stock Trading :
The most crucial factor that decides the fate of traders is the broker that can sustain the needs, provide facilities, and initiate trust upfront. The trader has to understand that trades and the right strategy are just parts of the game. And the right broker takes care of almost all the insecurities the trader can develop. The suitable brokers are the ones that provide a demo account or trading simulator with a pinch of educational material that help the trader understand a lot about the finance industry.
Whether it be a day trader or a retail trader, all the traders need a reliable broker for them.
Gather Information at Levels of Warrior Trading:
Trading is all about information. The more a person is informed, the broader the market he or she can trade. The internet is flooded with trading courses, online gurus that claim that they provide the “best trading plan”, stock trading courses and a lot more. The novice traders that most successful day traders are away from such things and research on their own. Research is key and the lock it opens guards the door that keeps a plethora of opportunities.
Trading in stocks is a vast field, and people can lose in between. It is essential for traders that they understand what they’re putting themselves into and stay inside the loop of hustle. The people who lose some money in the beginning and then leave trading all together are not good traders, neither are they good information providers. The best way to find information is to enroll in a god trading course or a one core program.
Also, the traders should be in a constant loop with wall street to know what is happening around the trading world.
Look For Experts:
Looking for industry experts can be a great deal for traders because they generally ensure that the people seeking their help are not falsified in any way. Plus, the experts can also tell the traders what volatility is and how to deal with it. Sometimes, novice traders skip investment opportunities, but the experts help them out in understanding how to make money at such an instance.
The investor looking for making money in day trading can learn a lot from experts and retail traders. Experts are also keen on increasing the risk management abilities for the novice because that has to be learnt ultimately. Sometimes they come up up with top-rate strategies for the investors to use. These people will never say no to a question asked and will always be the founder in the trade book of the trader. All the scholars and big players have had a mentor, someone who was willing to understand their psychology as a trader and train their minds accordingly.
Carefully Allocate Stock Budget:
It doesn’t matter how talented the trader is, what learning style they have been following, the success rate of the trade management methods they use is technically no use if the right capital is not given to them. Traders must always look for their training options with respect to their capital all the time. The price of an asset increases and decrease like it was there to attack the capital. In such cases, there has to be quality risk tolerance. Some money has to be set aside for a hedge fund if things go really bad. The traders need to access their capital so that it satisfies the analysis they have gone through. Capital is the vehicle that takes investors to places as they trade.
Terms like fund management companies, money market accounts and index fund don’t ring a bell to you initially, but after a point of time, they have to. These are hardcore terminologies related to trading that every trade has to know without any delay. Crucial math like the point calculation system, pivot point and a few more have to be known by the trader if he or she wants to excel in the field of trading.
Terminologies are a helping hand when it comes to deciding what type of investment has to be done. Prop trading firms are god no-ugh for providing video classes and video lessons to the trader to learn more and more. Following the terminologies is what would you do if you don’t know what going long is? or how to go short against a position, how to play during a bull market, how to play during a bear market.
Follow the Winners:
It is never wrong to follow the rule book a great investor, and the traders have to be brave enough to not blindly follow all of them. Things that these winners say apply to them, and it is good once in a while if the traders pay heed to them but not always. The big players have been playing their game for a long time. And the things that they say are good for them, from their point of view, with respect to the trading conditions they have faced. But it is never advised for any novice to follow the seniors in the game of trading blindly.
However, advice given in terms of making the most out of themselves as a trader can be genuinely followed by anyone. The winners are not there to brag, but they are there to help the people to learn a lot about themselves. The traders also have to understand that not everyone has become a winner overnight. It has taken hard work, money and sweat from their soul and wallet to become the best traders.
Practice in a Demo Account:
It is better to be a warrior in a garden than to be a gardener in a war. The way trading works, it is always good to have a demo account and practice well. Many chat rooms and trading platforms offer a demo trading account for novice traders to walk into the real market with fake money. Everything is real. The market, the risk, the reward and possibly a hundred other things. What’s not is the money that is being used to place bets and trades.
One thing to remember while trading on a demo account to use capital wisely as well. Some broker offers $100,000 to the novice as bot money when they trade demo. The novice traders also feel good about that stand start trading in an exotic thing like CFDs, futures, Forex and what not. The key is to use that money as real money and treat it as natural capital.
Think about it, would you begin with $100,000 when you begin trading for real? No, right? Then be wise and use that money as you would really o in the market.
Start Trading Right Away:
With everything being said and done, open your account with a broker and being trading right away. The opportunities are reasonable now, and they won’t be there for long, So don’t be afraid and make the trading account and make that first trade. It doesn’t matter what you do. Whether you win or lose. The game is to be consistent in the market, and only then can you be the best version of yourself as a trader. There will be times when you will lose your money, and there will be times when you make some. The game at such instances is to not being overwhelmed by emotions and then make the moves accordingly. Always remember patience and being calm is the key.
With this, everyone ends their write-ups but not us. As a commitment to the trading society, we would like to tell you some extra points that you can look up to to be the best version of a trader.
Warren Buffet has said this enough times, never put all the eggs in one basket. This means that never put all the money in one asset and always try and diversify the investments to bore more than a good result for you. There can be chances where you have invested more than grand at a mutual fund also, less than a few hundred bucks at someplace different. The larger investment can see a downside and vanish. The smaller investment can see an uptrend and balance the loss. This is what happens when you make your investments at the right places.
know what is about to happen:
The best thing a trader can do is make sure that all the risks are well managed and the trading platform is nearly exploited. This has to be done so that the traders do not have to worry about many things again and again. A good investment strategy can do wonders to the traders if used effectively. A good skill can bring the investors underground to the mainstream in no time.
Are you looking for a broker that can help you in trading stocks?
Are you looking for a broker that can help you with trading in stocks? Look no further because we bring you the leading online broke HFTrading. The broker has been in the market and has been making noises ever since. With more than 300 tradable assets, the broker provides trading via three main trading accounts. The silver platinum and gold trader also provides cfd trading on exotic assets like forex, cryptocurrencies, indices, to name a few.
The traders also have access to handsome trading material provided by the broker in the education and research section of the website. The broker is regulated by the authorities of New Zealand and Australia both. Since there are two different regulatory authorities involved, it is a waste of time to think that the broker is a scam, the broker not a scam and is perfectly legitimate. You Can open the account with HFTrading
- Invest in firms that you have a slight idea about
- Avoid ponzy schemes and penny stocks forever.
- Avoid firms who have toppled in recent history.
- Learn the use of crucial tools, like a Robo advisor, for example. Tactics and techniques required to analyse stock market
If you have been patient enough to read till down here, you are all set to be the trader you want to be. Go Hit the Floor.
Stock trading is something that can done easily. But never be fooled by what the people say. Trading is a risky business as a whole and should be done with utmost care. Beware of scam brokers, look for regulations and don’t be shy to ask questions. The game is to be consistent, not the best.