There has been a dramatic increase in traders worldwide in recent years. Trading apps and the availability of information on the internet means nearly anyone can learn about and begin to utilise trading and stocks as a means of making their money work for them. But where do you start?
Learn the Ropes
Trading can be overwhelming, especially in the first instance. It’s crucial that you learn and research as much as possible before taking any risks. There has never been more information online about investing in the markets and there are even quick online courses or stockbroker educational centres providing valuable information remotely. Education from trusted trading groups such as CFI are a great way to learn the ropes.
Open an Account
You won’t be able to begin trading without opening a trading account. Most people now trade through online brokers which support or match their criteria. It’s important to choose the right broker based on trading fees, account minimums and special promotions. Remember to prioritise customer support and educational resources – you’ll want to keep up your knowledge throughout your trading journey. CFI’s fast on-line account process ensures trading is available to all who acknowledge that CFDs are complex instruments and have assessed that they can afford the risks.
When your account is approved and opened and you are ready to begin investing, picking stocks is the next step. Good trading practice is to always do a thorough analysis of a company by investigating public records, earning reports and financial filing as well as assessing the risk. It is always best practice to tread carefully and conservatively in trading, especially so when you are just finding your feet. Walk before you run!
Make a Plan
Most traders acknowledge, because trading can become addictive or emotional, that setting clear boundaries and targets is essential, so you don’t make rash decisions or pull out too early and make a loss. Be clear with your trading broker how much you want to invest and at what price and your limits of how far to let a stock fall. This reduces emotional decisions, minimises risk and loss.
Trading is a great way to build wealth but, of course, knowledge is power, making the broker you choose particularly important. If you’re ready to approach the markets, don’t hesitate to get in touch!
CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs. You should consider whether you understand how CFDs work and whether you can afford to take the high risk of losing your money.