The modern approach to trading has become so simple and accessible that more and more people from all over the world are showing interest in this method of earning. The first exchanges appeared in medieval times, but over the centuries it has only been available to a select few. The situation changed after the appearance of the internet.
Nowadays, online trading is available to everyone, regardless of age, education, social status, or other factors. The most important thing is to be determined and have the desire to learn this skill. In this article we will consider the question of how to become a trader from scratch, without having any professional skills or even the slightest understanding of financial markets.
5 steps to success
- Learning about trading and selecting a trading platform.. It is important at the first stage not to be mistaken with the choice of site. Otherwise, the newcomer will face a quick disappointment from direct deception by a dishonest company. Choose a reliable company that operates in the market for a long period. For our part, we recommend Binomo. This is a time-tested international level platform.
- Acquiring a theoretical foundation.If you don't understand what the market is, how it works, what the basic principles are, etc., it will be difficult to succeed. All beginners must acquire a basic theoretical foundation, which does not take much time. A good helper in this matter are the video tutorials from Binomo. However, not all of them have been translated into 15 languages, but most of them have English voice-overs.
- Trading on a demo account. The opportunity to trade risk-free is the prerogative of the exclusively modern approach to exchange trading. About 30-50 years ago novice traders did not have such an opportunity. When used properly, the demo account serves as an excellent tool that will allow you to go through the most difficult stage in training without any financial risks. However, there are some pitfalls that should also be taken into account. We will return to this point at the end of the article.
- Real trading on ready-made strategies. . The first time after the transition from a demo account to a real market, you must clearly follow the step-by-step instructions that were created by professionals. Effective strategies can be found on our website. Also tested systems are offered directly in the trading terminal. Binomo.
- Develop your own trading strategy. When a novice trader acquires their own vision of the market through long-term practice, this can be considered the conditional completion of the training process. It is “conditional” because market professionals never stop training, they continuously learn new information as the financial market never stands still and is constantly evolving.
Trading on a demo account - for and against
Despite all the advantages of free trading on a demo account, many experienced traders speak negatively about it. And this is not a baseless claim. The point is that the opportunity to zero out the demo account an unlimited number of times instills in the novice trader a destructive psychological attitude. The deceptive simplicity and ease of returning losses can lead to loss of motivation to train in a meaningful way. As a result, beginners simply start to gamble by pressing the “up” and “down” buttons, without having learned truly effective methods of market analysis.
Benefits of a demo account:
- risk-free training;
- testing risky strategies (for experienced traders).
A disadvantage is the psychological danger. However, it can be reduced to a minimum if you don't simply “play,” but conduct meaningful analysis of the market instead. Starting to trade with a real account is financially risky, but it is permissible in two cases: if you know that you are disciplined and you have good endurance. In this case, it is possible to follow the rules of your strategy and money management.
You can also start with a real deposit, if trading is conducted under the guidance of a personal mentor. For example, Binomo offers the service of individual training for the premium category of users. Everyone else should start with a demo account, switching to a real mode after achieving a certain confidence and practical results.
Becoming a trader from scratch and learning how to make money is not as difficult as it may seem at first glance. But it’s also not as easy as beginners often think when they get acquainted with the topic of online trading. In conclusion, we would like to highlight three key points of successful training: the choice of a reliable platform that is focused on beginners, the acquisition of a theoretical foundation, and constant practice of applying what you have learned.