How to Begin Trading
Beginners interested in learning trading should follow the 3 steps below:
Learn Stock Basics
Traders need to learn the basics of trading. These trading basics include things like indices instruments that are traded in the stock trading market, why the prices keep moving up or down & what causes these market movements.
Traders should then move on to learn about the various methods used to trade indices ; these include technical analysis & fundamental analysis. In fundamental analysis traders will learn how to predict market moves by analyzing economic reports such as GDP and Inflation reports. In analysis traders will learn how to use stock chart to determine stock market trends and the momentum of these trends so that they can know which direction of the market that they can open their trades in.
Traders should also learn trading key concepts these are advanced topics that explain to traders more about the stock trading market. For example traders can learn about stock trading leverage & why they should learn about risk management principle in indices trading form the topic popularly known as indices money management rules. These concepts will help a trader get an in depth understanding of the stock trading market before they start trading the stock trading market. In stock traders should also know that they should only trade with risk capital - that is money that they can afford to lose.
All these learn trading topics are covered on this website in the learn lessons section of this site. Traders wanting to learn about these topics can navigate to this section of our website and learn more about how they can start trading.
Register a Demo Account
The next step is for a trader to open a demo stock trading account. This is a stock trading practice account provided by brokers & with this account traders can practice their trading skill on the trading using virtual money. Traders can practice risk free without investing their money.
With a practice account the trader can have more time to learn about the trading software which is used to trade the stock trading market, the trader can also learn how to place orders in the stock trading market as well as test their strategies & see how these strategies perform when trading in the online stock market.
A trader should practice their skills on the demo stock account for a period of one or two months until such a time that they learn all about stock indices trading & they have the knowledge required to help them to begin indices. Once a trader starts to make profits on their demo account they can then open a real account & start trading the real stock market.
Open a Live Account
To open live account traders will need to fill some paperwork with their stock trading broker and after filling this paperwork a trader can then start investing in the stock trading market. At this point a trader will have their strategy and plan that they will use to guide them when trading.
The only advice that traders should follow before opening their account is to know that they should only open an account with a regulated broker. Regulated brokers are the most reliable & most transparent stock brokers to do business with because they are regulated by financial regulatory authorities which mean that these brokers must follow strict guidelines when carrying out their operations.
