Tricks of the Trade – A Guide to Successful Market Trading
Are you ready to take your first big step into the ebbing, flowing, up and down, thrilling world of trading?
If you’re reading this, we know you are. But we also know that you’re looking for a way to ensure your investment knowledge is top-notch before you unclip that virtual wallet and start moving your hard-earned money around. QuickTrade can help with our definitive guide to financial market trading.
It’s a quick refresher read, if you will. A look at the types of markets out there, and then a short checklist of requirements to go through and skill-up on, before you take the big step and invest.
Let’s have a look.
What Are the Financial Market Types?
Yes, there are many, and at least one hosted in every country in the world. But before we look to invest, this is a cart and horse situation – it’s always best to not put the one before the other.
So, let’s look at the types of markets first, and the opportunities in trading they may offer.
This is the one we all know. The stock market is the place for trading the shares of public companies. If said companies perform well, the situation can be very lucrative for owners of their shares. The challenge here though, is to choose the right stocks. Deep knowledge of the market and the performing properties is then key.
In this market, investors buy bonds from companies who are looking to claim capital to fund projects or investments. The companies then return the amount of the bonds within a stipulated timeframe, with interest, after the project or investment.
In the derivatives market, contracts with a value based on a stipulated market value, are traded. An example of this is the buying and selling of natural resources, as in the commodities market.
This market is where traders buy and sell commodities like corn, oil, gold, and different kinds of meat products.
Let’s Talk Trading – Getting Started
Now that you know the kinds of markets out there, let’s get down to brass tacks. Here’s what you need to know, to get started as a trader:
Open Your Trading Account
No trading can be done until you’re online, so take advantage of the tools in the form of online trading platforms, at your disposal.
We can recommend an excellent one, too.
Once you’re there, familiarise yourself with the platform, and get to grips with its system and applications – if you know where everything is, that’ll stand you in good stead for seamless trading when you start to trade.
Knowledge Definitely a Trader’s Power
So, brush up.
The MetaTrader 5 platform linked above is also replete with a number of resources to help you stay on track with market movements, and investment top tips.
Analyse This, and That
Always be reading and analysing the price charts. As a trader, your bread and butter is in the subtleties and movements of some very volatile markets. So, try to become adept at the technical side of things – the price predictions that will tell you what the market is doing, where the money is and how to shift your investments toward it.
Don’t Jump the Gun. Practice Makes Perfect
Platforms like the above mentioned MetaTrader 5 offer a wonderful feature – a virtual trading option. This is basically like a simulator – hypothetical, but very possible, investment scenarios are presented, and you can essentially practice trading with them, and before you have to spend a cent of your actual money.
So, that’s our quick start guide on financial market types, and how to begin trading on them. The key takeout, then, is to make sure you take the time to gather as much knowledge of a given market as possible. Use the virtual trading option to build your investment know-how. Then, when you’re ready, have a go at it. Happy trading.
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