Getting Started with Market Trading
If you are planning on starting market trading, you can’t just hit the ground running. People trading is not very easy. Although the professionals on YouTube make it look like a walk in the park, the fact of the matter is that the opposite is the case.
Without the right base of knowledge, a good foundation, the right tips and the right mindset you just won’t be successful at trading. When it comes to market trading, whether it’s the stock market, forex, cryptocurrencies or anything in between without the right kind of education and knowledge, you are most certainly going to fail.
Of course, as professional traders, we hate seeing people fail because we know how bad it feels. What we’re here to do today is to help you get started with market trading. There are a couple of ways we’re going to do this.
First of all, we are going to provide you with some of the biggest newbie tips for starting market trading, some of the most important things that you need to know in order to be successful and to avoid failure.
Second, what we want to do is to talk about some of the best educational resources is for market trading around the best places for you to get a trading education so you can learn the skills and knowledge that you need in order to be successful. Let’s get to it and help you get started with marking trading so you can be a profitable success story.
Newbie Tips for Starting Market Trading
As stated above, no matter what kind of market you are trading in, market trading is not easy at all. As a beginner, you might not know where to start. Of course, the right kind of education definitely helps, which is something that we’re going to elaborate on further below.
There are a few educational resources for market trading that we want to tell you about ones that can turn you from a newbie into a profitable and self-reliant professional. However, before we start talking about the educational resources that you have access to, what we want to do is to provide you with some really important market trading tips for newbies.
Get and Education
Yes, this is something we’re going to elaborate on further below, but the fact of the matter is that if your market trading without an education, some kind of base of knowledge, then you are going to run into big time problems. There are a lot of fundamental aspects, basics and terms that you need to know before you can even think about being successful on the market. We need to find the right place to learn these things from.
Stay Up to Date
The reality here is that the market is always in flux. The market is always changing and it’s always evolving. This means that you need to stay up to date with new market developments. Keep in mind that both economic and political developments can affect markets. Knowing things like what the federal government’s interest rate plans are, what the economic outlook is and more are all going to make a big difference. If you expect to be a good market trader, you need to be aware of current events.
Setting Trading Capital Aside & Managing Risk
If you plan on being successful in market trading and if you plan on actually making money, one of the things that you absolutely need to do is to set aside trading capital. This means that you have should have money dedicated especially for trading.
The simple reality here is that some movie traders will risk their mortgage payments or their food money to trade. This is of course a huge mistake because if you end up losing them, hh no, you can’t pay your rent or feed your kids. The bottom line here is that you can only trade with money that you can easily afford to lose. Don’t gamble with the rent payments. On that same note, something else you need to do is to manage your risk very well.
The most successful day traders will never risk more than one or two percent of their balance per trade. So for instance, if you have a $50,000 trading account, if you were to only risk 1% of the account per trade, this would mean that if you happen to lose a trade, you would only lose $500. Never gamble all of your money on one trade.
Start Slow & Small
Something that you also need to do as a beginner market trader is to focus on a maximum of one or two stocks or foreign currency pairs at a time. Sure, a professional stock market or forex trader can have 10 or 20 trades open at once, but this is not something that is recommended for newbies.
Simply put, keeping track of all of those assets can be extremely hard, and the more traits you have opened, the more tracking you have to do. As you become better at trading, you can have more and more trades open at the same time. Moreover, never invest way too much money in a single trade, especially as a beginner.
One of the most important market concepts that you need to be aware of when it comes to market trading, particularly if you plan on investing in the stock market, is diversification. If you put all of your eggs in the same basket and you drop the basket, all of the eggs break. This is the exact same concept as with stock market trading.
If you invest all of your stocks into the oil industry and then all of a sudden nobody wants oil anymore, then you’re going to be in trouble. You should always invest in many different kinds of stocks and market sectors, because if one of them crashes, the other ones will be there to save you. Never ever put all of your eggs in the same basket. This is one of the biggest mistakes that you could ever make when it comes to market trading.
Don’t Forget Stop Losses & limit Orders
People, the fact of the matter is that when you are market trading, things can go wrong. Trades can and do go south. No worries, because this happens to the best of us. With that being said, there is one specific tool at your disposal that you can use to save yourself in the event that a trade goes south. If we’re talking about stock market trading, it’s called a limit order, and if we’re talking about Forex trading, it’s called a stop loss.
Either way, this is a tool that will cause your trades to closeout once they lose a certain amount of money. For instance, you could set your stop loss at 10% below the starting investment. Therefore, if you invest $1000 and the trade value dips below $900, the trade will close all on its own, thus saving you those $900. This is perhaps one of the most important tools that you need to use when trading.
Set Aside Some Time
As a beginner trader, something you need to be aware of is the fact that it takes time to trade. You can’t just wake up in the morning, spend 10 minutes trading, and then go do something else. You need to set aside at least two to three hours per day if not more to trade.
Remember, there are many people out there who trade full-time upwards of eight or even ten hours per day. The most successful people are the ones who trade the longest and dedicate the most time to it. Moreover, it’s all about practice. The more time you practice trading, the better you will get at it, and the more money you will make.
Forget Penny Stocks
We don’t want to focus on this too much because quite frankly it’s not worth the time. The only thing that we want to say here is that as a beginner market trader, you want to stay away from penny stocks. They’re just not worth the risk they come with. And even if you do win the profits they provide you with are so minimal that they often don’t make much of a difference in the long run.
Give it 20 Minutes
Many professional traders who know what they’re doing will get up first thing in the morning and start trading the stock market as soon as it opens. The very second that it opens now. This is fine if you are professional. Who knows what you are doing, but as a beginner this can be very dangerous.
That massive amount of trading that happens within those first few minutes makes the market very volatile, and for beginners this makes predicting the direction and prices of stocks extremely difficult. Simply put, you should wait 20 to 30 minutes after the stock market opens before you start trading. This will allow some time for the market to settle down a bit so you can make more accurate predictions.
Keep Your Emotions at Bay
One of the things that you absolutely need to do when it comes to market trading is to keep your emotions at bay. Not only should you keep your emotions at Bay, but technically speaking you should lock them in a deep dungeon somewhere.
Trading is supposed to be rational, intelligent and precisely thought out. Emotions do not have a place in trading in any way, shape, or form. Emotions will do nothing but cloud your judgement and cause you to make decisions that will end up losing money. Trading is all about your brain, not your heart. It’s the cold and calculated people who make for the best traders.
Make a Plan & Stick to it
Yet another important thing that you need to do if you plan on being successful in trading the market is to make a plan and stick to it. Of course, making a plan is not going to be possible if you don’t have the right education and the means to make a plan first.
Once you have a good trading education and you know what the best trading strategies and methods are, you can then make a plan that is proven to be successful. Folks, you don’t have to come up with your own trading plan. Nobody’s asking you to be an innovator or an inventor. You can always just use someone else’s trading strategies for your own trading, as long as they work, that’s all you need to know.
The important thing is that if something goes wrong, try sticking to the plan. If the plan has been proven to work for many years, and you just happened to lose a couple of trades with it, chances are that this was a fluke. Of course there is a limit here, and at the single strategy keeps losing for you, then it’s time to ditch it and find a new one.
Set Realistic Goals
The other important tip that we can provide you with here is that as a beginner trader, you need to set realistic goals for yourself. So many people think that trading on the market is a get rich quick scheme. This is not the case.
Especially as a beginner, you aren’t going to make hundreds of thousands of dollars per year doing this. The bottom line is that if you set realistic goals, you aren’t going to be disappointed when you don’t make ten grand on a single trade.
Getting the Best Market Trading Education
What we want to do now is to take a quick look at three of the best resources that can provide you with a great market trading education. What we want to say before we look at these resources is that the same person is the teacher of all of them.
The person we’re talking about here is none other than Andrew A, a long time trader who has been in the business for well over a decade and makes a full time living doing so.
Not only does Andrew know how to trade very well. But he also knows how to teach these things to newbies in ways that are very easy to understand. When it comes down to it, there’s really no one we would rather learn from than him. Let’s take a look at the three main resource is that Andrew provides you with in order to learn market trading.
Andrew’s Trading Channel on YouTube
First of all, if you want to learn how to trade without spending any money, what you need to check out is Andrew’s Trading channel on YouTube. This is a 100% free resource that you can use to learn some great trading strategies, basics, fundamentals of trading and to get up-to-date news stories. Andrew uploads several new articles per week, and they can be about a wide variety of topics.
Of course, they are all in regards to trading, but that said they could be about cryptocurrencies, Forex, the stock market, or anything in between. Now, with that being said, although you can get some great tips and strategies from Andrew’s Trading channel, it obviously doesn’t qualify as a fully comprehensive education that starts from the ground up. If you want a full scale trading education then you want to check out either of the resources is that we’re about to talk about below.
The Income Mentor Box Day Trading Academy for Forex
If you want to learn how to trade Forex like a pro, you should check out Income Mentor Box. This is a great Forex trading school that consists of well over 50 full-length video tutorial lessons. Andrew explains everything verbally and then backs it up with live video examples.
The course starts with the fundamentals, and by the end of it, you will know some of the most difficult and advanced trading strategies out there. If you want to know everything there is to know about Forex trading, this is the place to be. Let’s keep in mind that you also get a free Forex signal service included free of cost.
- Basic trading concepts
- Advanced trading techniques
- How to use trading platforms
- Indicators and oscillators
- Swing trading and intraday trading
- How to do money management the right way
- How to create your own profitable trading strategies
- How to evaluate risk and market conditions
- How to avoid little mistakes that can lead to big losses
- AND SO MUCH MORE!
CLICK BELOW TO JOIN INCOME MENTOR BOX AND START MAKING REAL PROFITS!
The Stock Trading Mentor Box Academy
We’re going to spend much time talking about this particular stock market trading school today. What you need to know is that Andrew A is the teacher of this school. If features over 50 full length video lessons, it comes in at a very reasonable price and you even get a free profit scalping indicator with it.
If you want to learn how to trade the stock market and you want to be professional, then this is where you need to be. Stock Trading Mentor Box is currently one of the best stock market trading schools in the world.
CLICK ON IMAGE BELOW TO JOIN
Getting Started with Market Trading – Final Thoughts
First off, if you follow all of the market trading tips that we have provided you with here today at the beginning of the article, you should already have a great base of knowledge and a good idea of what you need to do in order to be successful in the world of trading.
With that being said, it is totally obvious that nobody can become a great trader without the right kind of education. We definitely recommend using any of the three, if not all of the three educational market trading resources that we have talked about today. It is your best chance at becoming a profitable and self-reliant trader.