How to Start Making Money on Trading: A Beginner's Guide

We've made a short action plan, which will allow you to start successful trading with any broker. The step-by-step instruction for a beginner looks like this:

1. Choosing a trading instrument. Financial markets offer a wide range of opportunities. Today, online traders can trade currencies (Forex), cryptocurrencies, and securities on stock exchanges. At the beginning of your career, give preference to instruments with high liquidity. For example, when it comes to Forex, choose popular currency pairs, the so-called "majors".
2. Choose a good broker. When analyzing companies, you need to pay attention to the availability of a license, the size of the minimum deposit, and the trading commission. Also, make sure that the broker offers to trade in the financial instruments you choose, and that its conditions are more favorable than those of competitors.
3. Developing a trading strategy. It is impossible to make money on trading without following certain rules. Strategies are divided into different types according to different criteria: by trading time, the type of market analysis, the method of opening a trading deal, etc. Study the different strategies carefully and move on to the next step.
4. Testing the Strategy on a Demo Account. Before you start using the strategy in real trading, you should test its effectiveness in a virtual environment. This way you can adjust it if necessary and not lose all your capital.
5. Studying the psychology of trading. It is necessary to read literature on this subject, to begin with. After studying the theory you can practice making informed decisions on a demo account. Don't be afraid to open and close trades - the more practice, the easier it will be to adapt emotionally to the upcoming trade in real market conditions.
6. Risk management. Risk-management rules allow for minimizing losses and saving the deposit. Do not neglect them! Observe the seemingly trivial rule of "not keeping all the eggs in one basket" and do not open transactions amounting to more than 5-10% of your deposit.
7. Constant improvement of your trading skills. If you want to earn on Forex or the stock market, then constantly learn new strategies and try to apply them in practice. Thus you'll work out your own trading style and hone your actions up to automatism.

___________

Also, if you want to use all available trading tools to increase your profits as soon as possible - follow this link below, or contact us via live chat. Our experts will help you to choose the best strategy for success.

Follow our updates for useful information in our series of articles. You can also visit our previous article to better understand this topic.