10 tips for those who start trading

Online trading is nothing more than a way to invest in the Stock Exchange practicable from home with a simple PC.

In short, just open an account on a financial broker site and you’re done.

So that’s it, then?

Well, not really.

Trading, which in recent years has spread a lot among users and is increasingly practiced, is not at all as easy and immediate as it might seem.

If you believe that it is the right solution to all your economic problems and a way to make money effortlessly, you have not understood anything.

To trade well and hopefully profitably (go deeper: how much you earn from trading), you need to study and practice with commitment and quite a long time.

The markets are complex and lose, unfortunately, is a concrete possibility and nothing at all remote.

That’s why if you intend to approach to this world, you absolutely need to listen to the right advice, to make them yours and, only after, once assimilated, to begin this activity decidedly stimulating.

Here’s what you need to know about it.

Online trading: what is it?

Online trading is the purchase and sale of financial securities via the Internet.

Transactions are made using a specific software, the so-called trading platform, created and made available to users by financial companies called online brokers.

In practice, these brokers buy and sell securities on behalf of customers and charge a commission in return.

They may be banks, Sims or companies specializing in this type of activity.

Online trading 10 tips for beginners

Beginners should keep the following 10 tips in mind to avoid unpleasant surprises.

1) Trading is not a game

Online trading is certainly a great opportunity for personal and financial growth, as long as you approach it in the right way.

Trading is not a game and, even less, a pastime that allows you to get rich in a short time.

Trading is a serious business, which requires study, commitment and perseverance if you want to make significant gains.

2) Choose the right platform

A key step in getting satisfaction from trading, is to choose the right platform.

There are criteria to consider in this regard.

First of all, it must be authorized and regulated by CONSOB, a fact that many beginners, unfortunately, ignore.

If you work through a non-regulatory platform, you inevitably expose yourself to the risk of scams.

So never open an account without checking it, perhaps attracted by one of the many misleading advertisements scattered on the web that promise stratospheric gains in the blink of an eye.

On the other hand, although there are excellent platforms available, they are not always suitable for those who look at this reality for the first time.

The platforms that are good for beginners are those that are intuitive to use and do not require high investment.

There are many different types of platforms around, all as good as, just to give an example, GTCM.

This platform is an ideal launch pad for routing in the complicated but satisfying path of online trading, especially as learning to use it is quite easy.

First of all, GTCM is a broker regulated by CONSOB, secondly, as we have already mentioned, it is one of the most usable and suitable platforms for newcomers to the subject.

Other positive aspects that deserve to be mentioned are:

– presence of three different trading platforms;

– on the PROFIT platform just one click to close trades;

– the customer service is easily reachable also on WhatSapp;

– The course material is provided free of charge;

– personal account manager.

Although still little known in Italy (the head office is located in Nicosia, Cyprus), it is very likely that soon GTCM will become one of the most popular platforms and used by us. In fact, this broker offers Traders various opportunities, such as trading commodities, futures and currencies, while the shares are only contractible by affiliates holding a Premium, VIP or Platinum account, which gives, in fact, more useful to those who join.

3) Do not rush

We have said it, but we repeat it: trading is not an activity in which you can go in a hurry, especially at the beginning.

To learn the dynamics, actually quite complex, it takes time and, as for everything else, study.

Approach the Forex as you would for any other subject unknown to you, or inform yourself, read as much as possible on the subject, deepen, apply and not overdo it.

This means that the first few times you should invest only modest amounts of money, so, if it does not go well, lose will not be a big problem.

When you feel ready, you can risk higher figures, but always with common sense.

4) Keep calm!

Don’t consider this superfluous advice, because it is not.

Often beginner traders are overwhelmed by emotions and anxiety, so they tend to despair of losses far from alarming as well as, on the contrary, to exalt themselves out of all proportion for profits too modest.

This attitude is not good and does not suit a great trader, who to be and maintain that needs to remain calm and cold under any circumstances.

5) Learn how to make the best use of trading signals

Profitably using so-called trading signals is one of the best strategies for operating with the desired success in the financial markets.

But what is it about?

In fact, most newbies ignore this point.

Trading signals refer to fairly precise indications on the markets, which can ensure good returns.

On the net you may come across different services of trading signals, some of which are offered free of charge by the brokers themselves.

However, their very high level of reliability means that on most platforms, in order to take advantage of them, it is necessary to subscribe to a monthly subscription that is not strictly economic, usually over 1000 euros.

Is it worth it?

It is up to you and only you to decide on this, according to your needs and expectations and the budget allocated.

6) Beware of forums!

Beginners in general, not only in Forex, tend to ask for advice right and left.

Nothing wrong with this, indeed it is perfectly normal, as long as you do so with good reason.

In particular, those who approach online trading for the first time, goes to the frantic search for forums on the web.

We do not recommend it.

Forums are an excellent opportunity for discussion and comparison, but often, especially in those with a financial theme, there are fake experts or gurus who, in reality, have little knowledge of the subject.

It is clear how misleading it can be for an inexperienced person to rely blindly on certain subjects: avoid.

Initially, follow what someone tells you to practice and be really good at in the field, but then learn to walk with your legs and, above all, to reason with your head!

7) Pay attention to the timetable

Most platforms allow you to trade 24 hours a day, 5 days a week, but there are times when it would be better to focus your attention and act.

The trends of the Forex market are particular but, in principle, the central hours of the Italian afternoon are those in which the exchanges move more liquidity.

This is the best time to act.

8) Diversify your objectives

In many situations, including trading, concentrating everything, so in such a case efforts and money, towards a single goal, can prove to be unsuccessful.

If you invest everything in one position, you can make substantial losses.

So how do you behave and how do you limit your risks?

Diversify.

A good idea is never to invest more than 2% of your capital in a single position, ensuring that you do not vary.

There are many markets available, so make the most of their potential.

9) Self-assessment

You need to be aware of your limits as well as your possibilities and this applies to online trading and any other area.

So, self-assess yourself.

What does that mean?

That a trader at the beginning, should always be well aware of his own limits and act accordingly.

This awareness serves to move with caution, to avoid unnecessary risks and to contain any damage.

Overdoing, especially in trading, is never a good strategy and can lead to very large losses.

Also, it is good to specify that not all assets are suitable for all investors.

Better to bet on the most widespread and popular markets, which correspond to those richest in liquidity and, for this, definitely tempting.

10) Follow the most experienced traders

Instead of wasting time in computer forums exchanging opinions with people of dubious competence, immediately rely on the advice of experienced traders and try to learn from them.

Following the examples of good investors is one of the most effective ways to learn. Many platforms, for example, offer a “social trading” service, where beginners follow the moves of the most popular traders.

Doing so will ensure that you understand the strategies of capable and successful subjects in the field.

On the web there are tools specially designed to allow beginners to automatically follow the solutions adopted by experienced traders.

Using them will be an excellent and irreplaceable training ground for you.

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