How To Start Trading In 7 Simple Steps

April 24, 2020
At EverFX, our success is built on diversity, flexibility, transparency, and open, reasonable pricing structures.
How To Start Trading In 7 Simple Steps

First, allow us to introduce ourselves!

With successful operations all around the world, we are an international online broker that provides access to over 130 tradable instruments from 6 asset classes for both retail and institutional investors.

In simple words? We can help you start trading in any industry you wish while guiding you all the way.

At EverFX, our success is built on diversity, flexibility, transparency, and open, reasonable pricing structures.

We aim to create long-lasting relationships with our clients and to empower them with the necessary tools, knowledge, and support to enjoy and excel in their trading endeavours.

Knowledge is one of (if not the most) useful and powerful tool, especially when it comes to trading.

Therefore, we put together 7 simple steps in which you can start trading, whilst providing you with special tips for ultimate trading experience.

Here we go!

1.      Why Trade?

Before jumping in the whole online-trading boat, ask yourself “why?”.

It’s important to set your goals from the very beginning, in order to then decide which industry, stock, currency or instrument you prefer to trade with.

Are you thinking about trading full time? Maybe looking to grow your current retirement account? Or do you just want an extra income?

Based on your answer, you need to start thinking about how much time and money you are willing to invest, especially if you’re planning to do it for a short period of time.

It is suggested that you start trading with a minimum amount (maybe around 20%) and then decide whether you want to keep going, or not.

2.      Knowledge is Power

As we mentioned previously, knowledge is the main tool you need in order to start trading.

The world-known businessman and trader Paul Tudor Jones once stated: “The secret to being successful from a trading perspective is to have an indefatigable and an undying and unquenchable thirst for information and knowledge.”

This being said, we highly recommend that you don’t just “jump into” the stock market and hope for the best.

At EverFX we offer our clients a massive selection of informative content regarding trading and where to start.

Besides the helpful material, our team is available 24/7 to assist new and existing traders with their investments.

You can check out the material provided by EverFX here.

3.      Controlling Emotions

Moving on, the ability to control emotions is an absolute necessity when trading. Many well-established traders have made this clear on numerous occasions in their careers.

Victor Sperandeo gave the perfect example of this when he stated that “The key to trading success is emotional discipline.”

The ability to keep your emotions under control is what makes or breaks a trader.

If a trade goes against, inexperienced traders tend to wait for the trade to reverse, and they don’t want to close it with a loss.

However, that’s exactly what successful traders do.

4.      Pick your Broker

Of course, we would love to include you in our long powerful and successful list of clients, but you have the last word!

Regardless of your choice, we’ll tell you a number of things you should be looking for in any broker you decide to proceed with.

If you are a beginner, customer support should be one of the main things available to you by your broker.

Also, educational resources are highly recommended, in order to help you further expand your knowledge around trading.

Additionally, you should also consider the online broker’s stock trading software. New traders need a platform that is streamlined, easy to navigate, and incorporates how-to advice and a trader community of peers to help answer questions.

(We don’t mean to brag or anything, but we offer all of those things and more! ?)

5.      Stocks Research

So, let’s assume you’ve opened your account, and you’re ready to start investing. What do you do next?

Well, most traders start researching different analytics of companies, their earnings reports, SEC reports, general public information, etc.

This information should be given to you by your broker anyway, along with recent company news and risk ratings.

We suggest, however, that you pick 1-2 stocks first, and invest a set amount that you are prepared to lose.

That doesn’t sound good at first, I know. However, just like Yvan Byeajee stated: “Confidence is not “I will profit on this trade.” Confidence is “I will be fine if I don’t profit from this trade.”

You can plow gains back into the stock, or even into other companies after that. Just don’t add a lot more money to the pot until you know what you’re doing and can put research into other companies.

6.      Get to know the Market and Have a Plan

“Don’t blindly follow someone, follow the market and try to hear what it is telling you.” Jaymin Shah, Indian Entrepreneur, Marketing Guru and Investor.

It’s important that you analyze the market to make the right decisions in the future using your experience of making successful trades, and, of course, to avoid repeating the same mistakes which previously led to losses.

Losing money is never fun, and it’s easy to panic and pull out at the wrong time. Similarly, it’s also easy to get swept up in the excitement of what feels like a winning stock.

In either situation, you need to try and stay focused and committed to your initial plan.

How much are you willing to invest, and at what price? You have to determine how far you’re willing to let a stock fall before you get out.

Your broker can also advise you on this, but it’s good that you have an idea of how things work as well.

7.      Practice before Start Trading

Many brokers (EverFX included) offer demo accounts in which you can practice before actually investing real money in a stock.

This way, you can put into action everything you learned up to that point, and see which strategy works best for you in order to make profits.

Through trading, yes, you can make money. You can, however, also lose money. So, it all comes down to dedication, knowledge, strategy, and of course a trustworthy broker.

Since this industry is constantly evolving, new trading strategies come out, and new assets are introduced.

To avoid losing your money and stay on top for as long as possible, spend more time studying, and practising different methods!

Are you ready to embark on a fascinating trading journey?

Contact us for everything you need to know about the trading world!

Disclaimer: This article is not investment advice or an investment recommendation and should not be considered as such. The information above is not an invitation to trade and it does not guarantee or predict future performance. The investor is solely responsible for the risk of their decisions. The analysis and commentary presented do not include any consideration of your personal investment objectives, financial circumstances or needs.

Risk Warning: Our products are traded on margin and carry a high level of risk and it is possible to lose all your capital. These products may not be suitable for everyone and you should ensure that you understand the risks involved.

Categories: News , Trading

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