Did you decide make money on stocks, currency pairs or raw materials, but you have little knowledge and no experience. Begin with the choice of a broker trading on an exchange. He can provide you with a steady income. At the same time, you can begin to develop platforms, strategies and other fundamentals of successful trading on the exchange in order to independently conduct successful transactions and receive money in your account.
The word "broker" is English. It means an intermediary in a transaction related to tangible assets: securities, currency pairs or commodities. A broker is an intermediary between a trader and an exchange. It provides a platform for opening trades and receives commission from traders.
For a client, trading with a broker means opening an account on the broker's platform and starting to open deals on the assets of interest. Brokers provide their clients Additional servicesregularly submit reports, teach trading on the exchange.
The conclusion of transactions is carried out in various ways:
By transferring money to another trader, the client completely depends on his ability to conduct transactions. The action is risky, it requires the right choice of a trader. A percentage of the income goes to pay for the services of a trader. Trust management is suitable for beginners who do not know how to analyze assets on their own, and for people who do not have time to analyze the market.
Trading independently, a person is free to choose deals on the broker's platform. He decides what to buy and sell, does not pay anyone for services. Independent trading is possible for people who have mastered the profession of a trader, with a broker trading on the exchange and having minimal experience.
Trading with robots. Robots open trades automatically or semi-automatically. Based on developer algorithms. As a rule, advanced robots have settings that allow you to customize the robot for yourself. Risks are minimized, especially for beginners. There are paid and free trading robots. Among the free ones there are very profitable, worthy options.
Below is an action plan for mastering the basics of trading and tips on how to avoid the mistakes of most beginners.
Brokerage trading is part of the market mechanism
Trading on financial exchanges is carried out regularly on real and virtual platforms. They are held openly and are not regulated by the state. Pricing is free. Both professional and amateur traders can trade with a broker and receive income. Any adult is allowed to bid.
Ease of income can be deceiving. For trade, you do not need a diploma, beginners do not pass the selection. But in the market of unprepared players, potential losses and disappointment may await. The amount of money invested by all participants does not change. When one trader earns, several lose some of the money.
The path to independent earnings consists of 7 steps.
1 step - choosing a broker
Brokers conclude transactions on their website using trading floors. Their work is completely transparent. They use your capital to carry out the transactions specified in the contract.
To reduce risks, you can trade with several brokers.
I posted on my website broker rating. You can use it to select your broker.
When choosing a broker, you should pay attention to the working conditions that it provides to its customers and take into account the main points.
- It is necessary to carefully familiarize yourself with the conditions provided by the broker to your client, compare several from different platforms, select the optimal ones, register and pass verification.
- Get acquainted with the trading platform provided by the broker, learn how to use it, learn about mobile versions for the tablet and smartphone.
- Check the information support and the work of the support service, the opportunity to get advice on any issue. Then you should determine the degree of custody of the client's broker, the number of calls, access to financial news.
- Brokers conduct free courses for beginners and already trading traders. By doing so, they increase the professional level of customers, attract newcomers. As a result, they increase their income.
Trading with a broker is profitable, the platform is interested in a regular customer and helps him improve.
2 step - tool preparation
The success of training and the amount of income depends largely on a good tool. For a trader, this is a powerful computer designed only for work. Other family members in social networks and games should not sit behind it. The PC must have a powerful processor, a good antivirus program.
Internet access should be free, around the clock, unlimited. You should choose a reliable provider that provides the best services. This should not be economized.
When choosing a broker, pay attention to the provision demo accounts. This is a virtual account that is opened with a broker and allows you to learn by trading real instruments. It is necessary for training and training.
3 step - mastering the basics of the trading platform
After registration, you need to study the account, get acquainted with its interface, master all the functions of the cabinet. Then connect to the demo account and learn how to quickly open, close positions, find the necessary buttons for placing Take Profit and Stop Loss orders. Bring your actions to automatism. In the help section on the site there are answers to all questions.
The next stage of training is a chart of financial instruments. You must learn to make basic manipulations on it:
You can master the handling of the chart by practical selection, trying to set different values. Things will go faster if you use the help section on the trading terminal.
4 Step - Learning the Basics of Analysis
A comprehensive analysis of the market situation allows you to accurately determine the time to buy or sell shares. Without analysis, trading is chaotic, and as a result, the trader may suffer losses. Fundamental и technical market analysis - the basics of knowledge necessary for successful trading on the exchange and making a profit.
It is based on a combination of economic factors that a trader receives from international economic and political news of a global and local nature, changes in the political situation in individual countries. You should be interested in events related to the shares of the company selected for investment and its accounting reports.
The analysis is based on the study of the movement of the price chart, its repeating algorithm. The same type of patterns - price models, have a similar development of events and with a high probability they will have the same price changes when it rises and falls.
The next section of the technical analysis states that “the price chart takes everything into account.” Events that occurred earlier and occur at the current moment in time, change the behavior of the price. All of them are already presented on the price chart, just compare.
Based on a fundamental analysis, the trader determines what exactly is worth buying and selling. The time of the operation is determined by technical analysis.
The broker's website usually does not have training material on these issues. Mastering the basics of analysis is necessary from the literature available on the Internet, my site is an excellent choice!
5 step - trading system and strategy
All successful traders who trade stably adhere to the general rule - they precisely follow the developed ones. trading strategies. Only strict adherence to all rules, a pedantic repetition of actions leads to success. Trading without a strategy is like tugging all the leverage in a row while controlling an airplane. The result in both cases is deplorable.
A trading strategy is part of a trading system. The trader, proceeding from it, opens positions exactly at the right time. In addition to entry points, the trading system consists of many nuances. Among them:
The money management system consists of several points:
- based on the recommendations of Money Management, determining the opportunity to enter a position;
- position size calculation;
- finding an exit point in cases where it is not determined by the strategy.
The psychological aspect of the trading system should be guided to obtain answers to questions:
- when to stop;
- determination of the amount of risk.
The trader should be guided by cold calculation and not allow the excitement to take control of himself. It is especially important to adhere to the psychological aspect when losing trades are made. Emotions can get my mind out of control. Therefore, each trader determines in advance how many losses he can afford. For one, 2 of unsuccessful deals will suffice. Another can afford to lose 10 times, and then confidently rise to even higher positions. The psychology of the actions of each trader is individual and does not depend on the broker trading on the exchange.
An experienced and novice trader must set a bar for himself and after a certain number of unsuccessful transactions exit the exchange and temporarily stop trading. This is a mandatory part of the trading system.
Each person has his own risk limit - the amount of money that he can risk without losing his financial stability. The trader must not exceed this size. For example, Money Management allowed to open positions in large volumes. The risk exceeds the comfort limit - acceptable costs. It is necessary to reduce the size of positions, to reduce the size of possible losses.
As a result of large losses, the novice trader will feel psychological discomfort. As a result of this condition, emotional imbalance occurs. A person loses control of himself, makes rash decisions. As a result, the size of losses increases sharply.
The proposed options must be used as a basis, using them as a base. In the learning process, you should create your own line of behavior at the auction. Each person is individual, and only he knows what suits him. In the process of gaining experience, a decision will come which points should be excluded from your strategy.
6 step - training trading on a demo account
Having mastered the market analysis and creating an individual trading system for yourself, you can test your knowledge and skills. Use for this should be a demo account. You have registered on the site to complete transactions and learn. There is a trading terminal with an open demo account. With it you can trade virtual money without risking your savings.
Transactions are concluded in real time and differ from the real ones only in the result - the trader does not receive real profit and does not lose his money. A beginner gains invaluable experience in real trading, breaks his tactics and tests the strategy. The success of transactions, the stability of income and the career of a trader depend on the skills acquired.
Some beginners successfully carry out the first 2 - 3 transactions and stop training. They decide that they have already become successful specialists, have gained the necessary experience. This is the main mistake of impatient customers. As a result, when trading real money, they lose everything, they receive moral trauma. You can not stop here and think that you know everything, be prepared to improve your knowledge regularly.
You can obtain the necessary skills when trading on a demo account and maximize the benefits of the opportunity to train, subject to certain rules.
- Opening a demo account is necessary for the amount that you are willing to invest with your money.
- Transactions should be taken seriously, as if it were real money.
- Strictly adhere to your tactics and strategy.
During debugging, flaws appear. Changes to the trading system are made immediately, upon detection of weaknesses.
You should adjust your strategy and continue to work out the methods of concluding transactions until fully automatic. There is no need to rush. Immediately tune in for several months of hard work.
Trading training on a demo account can be considered successful if during the 2 - 3 months the results are stable, positive with a uniform income.
7 Step - Transition to Real Money Trading
It is necessary to be patient and persistent, spend several months on training. This is the only way to become a successful trader and receive stable income from trading on the exchange.
Many newcomers believe in advertising that trading on the exchange is easy and big money. Immediately after registration and development in the office, they "rush into battle", begin to trade for real money. It is not difficult to choose one of the two buttons: “Buy” and “Sell”. It is much more difficult to get a stable profit, and not to lose your hard-earned money.
To turn from a beginner who does not know anything about trading on the exchange, into a trader who receives a stable income, you must work hard. Otherwise, frustration from the broker and trading in general may appear.
Trading on the exchange only from the outside seems simple. A successful trader must constantly improve his skills, learn new methods of analysis. He can not relax for a single day, he will lose his qualifications.