Are you interested in getting started with trading but aren’t sure what that entails? Have you heard stories about people making millions of dollars from trading and want to give it a shot?
Good, because you’ve come to the right place.
Below we’ll provide you with a quick introduction to trading as well as a short summary of the tools you need to equip yourself with before you get started.
So without further ado, let’s get to it.
What is Trading?
Trading is the act of buying and selling financial instruments over a short period of time and making money from the buy and sell price. Compared to investing which is the act of buying an instrument with long-term goals that might span a few years, trading is usually done on a day to day basis, hence the term day trader.
What is cool with day trading is that there are so many instruments and markets you can trade on. Two of the most popular are the stock and forex market where you can trade company stocks and currency pairs respectively. You can also trade commodities such as oil or bonds and obligations. Lately, cryptocurrencies have become one of the hottest markets for traders.
Another benefit of trading is that you can trade derivatives such as Contract for Difference (CFDs) and for that, you need a CFD broker, but more about that in a second.
To learn more about trading we suggest you check out some of the leading portals on the subject, BullMarketz, Investopedia, MarketWatch, and other trading portals. Most of these sites are offering information and trading education for free.
What You Need to Start Trading
With a quick review of what trading is, we’ll take a look at the equipment you’ll need.
Firstly, you need to find a broker that you can open a trading account with and that offers the instruments you want to trade with. Check out this list of some of the leading trading brokers for a better idea of what’s offered.
Second, you should invest in a more in-depth trading course where you’ll actually learn how to trade, analyze instruments, create a strategy, etc.
We also suggest you get yourself a trading app so you can trade when you’re out and about.
And that’s pretty much it, at least when you’re getting started.
Naturally, as you gain more experience and learn new tricks, you will want to expand your toolbox. But to start with, a good and reliable broker, as well as a trading course or a mentor that can teach you the basics of trading, will be enough.
Our Bonus Tip
Also, we suggest you find a broker that offers a demo account that allows you to practice trading in a safe and risk-free environment. A demo account is a priceless tool that will give you a great advantage over most other traders, and it will definitely help you gain some much-needed experience.
As mentioned, that was our quick introduction to trading, and we hope you have a better idea of what to expect.
Just don’t think trading is something you’ll master overnight. In order to become a good trader, you will have to dedicate many hours to learning and testing strategies, and you will have to experience your fair share of losses before you start making a profit.
Also, don’t think that trading is “a get rich quick strategy.” In fact, as many as 80% of all traders lose money.