If you’re reading this, you’re thinking about starting a very exciting journey – your trader’s journey. It’s a foray into the sometimes perilous, but often very lucrative world of the stock market, and the adventures in money-making one can have on that fast-paced, exhilarating, virtual trading floor.
But to make money in trading, you simply have to ensure you know what you’re doing. It’s a world of intricacies, and sometimes, if markets aren’t deftly navigated, and somewhat understood, they can turn on the intrepid trader.
Luckily, though, there are ways to learn to trade, to understand market moods, and practice before putting real money on the line. These features are all found in a trading platform worth its salt – like MetaTrader 5 (MT5), for example. And at QuickTrade we can facilitate a harmonious union with MT5, to get your trading journey kickstarted the right way.
But before you set out, here’s a quick article with a few pointers, and some terminology, to get you on the right foot to more successful future trading.
Financial markets trading – Things to know before you trade
Financial markets offer many benefits to traders. These benefits include the ability to trade a variety of financial instruments, the potential for high returns, and the opportunity to take advantage of leverage.
In order to take advantage of these benefits, however, it is important to understand how financial markets work. This includes understanding the different types of financial instruments that are traded in the market, as well as the risks involved.
Here are some key things to keep in mind when trading financial markets:
• Understand the different types of financial instruments that are traded in the market. This includes stocks, bonds, futures, and options. Each type of instrument has its own set of rules and regulations.
• Be aware of the risks involved in trading financial markets. This includes the risk of financial loss, as well as the risk of fraud or manipulation.
• Have a clear understanding of your financial goals. This will help you determine which financial instruments to trade, and how to best use leverage to achieve your goals.
• Use stop-loss orders to limit your losses. A stop-loss order is an order to sell a security at a certain price point in order to limit losses.
• Use limit orders to lock in profits. A limit order is an order to buy or sell a security at a certain price point.
In trading, it’s best to be meticulous – after all your money deserves to be placed in good stead for profit, in every investment situation you consider.
So, to summarise, here’s a quick trader’s checklist for you to add to your routine, before you make the decision on a trade:
1. Do your research – There are things to know, market hours, regulations, political events and economic stats. These are all influencers of a stock market, so make sure you’ve done your research into what the market moods and shifts are and could be.
2. Make a plan – Before you trade, you should have a plan in place. Know your motivation, how much capital you can trade, the possible risk and how you’ll manage that risk, and then of course, your stylistic approach to the trade and the strategy you’ll be using.
3. Trading strategy – The strategy you’ll use when trading is a crucial point. Will you be day trading, position trading, swing trading or scalp trading? Know the difference and apply the most effective strategy for the trade type.
4. Manage risk – Trading is about profiting, but also mitigating risk wherever possible. We’ve already spoken about stop-losses and limits – use them wisely.
5. Practice – Using demo platforms like what you’ll get with QuickTrade, will help you gain great experience without having to use any of your own real money. What’s more, gaining experience will help build your confidence in real-world trading situations.
By following these tips, you can trade financial markets more effectively and improve your chances of success.
With QuickTrade’s premier trade offering, your first step in a trader’s journey will set you on the path to creating an unlimited income business with your investments. With us you get:
• Fractional trading of CFD and US stocks
• Free trading signals
• Technical trading support
• Access to a free trading room
… and much more.
Click here to sign up with QuickTrade and start trading today.