How To Start Trading
As A Beginner
THINKING OF GETTING INTO TRADING?
5 key considerations for new traders
The world of trading is immensely exciting, giving you the opportunity to take control of your finances, engage with the markets, and hopefully make a profit! But that doesn’t make it easy. That’s why we’re keen to educate beginner traders like you and help you become the best you can be.
Using insights from our experts at Trade Nation and our community of new traders, we’ve covered what beginners need to consider.
TABLE OF CONTENTS:
1. Understand Why You’re Trading
There are lots of reasons people get into trading but there is also one major red flag. Are you thinking about trading because you want to make a quick buck? If so, you probably have no idea how much time and work you need to put in to be successful. But if you’re curious about the financial markets or keen to learn a new skill, it sounds like trading is right for you.
As we all know, trading is risky — that’s part of what makes it so thrilling. So not only do you need to be realistic about what you hope to get out of it, but also dedicated and willing to learn.
This might feel a little scary as a beginner trader with no experience of the markets. That’s why we thought it would be hugely helpful to track the journeys of two of our new traders.
WATCH OUR VIDEO – MEET THE NEW TRADERS:
Sebastian Bates and Nisha Vyas have been documenting exactly how they got into trading and everything they’ve learned so far, giving you a sense of what to expect when you start your own trading experience.
2. Get To Know The Markets
Trading isn’t black-and-white and every single trader will have a unique approach of their own. You have a lot of decisions to make before you get started and one of the most important is the financial market you plan to trade on.
You’ve probably heard of stocks and shares but these definitely aren’t your only options. From currencies and commodities, to indices and equities, there are so many financial products you can trade on.
Crucial things to consider are:
- When you plan to trade
- Whether you have short term or long term goals
- How much risk you’re willing to take.
WATCH OUR VIDEO – NEW TRADER NISHA VYAS ON CHOOSING HER MARKET:
It would be a big mistake to dive right in without doing your research. Every market is different so you need to spend time learning about which is most suitable in order to maximise your chances of success.
3. Have A Financial Strategy (Staying Objective)
If you want to succeed in anything, you’re far more likely to do so with a plan in place. Trading is no different, which is why you need a solid financial strategy before you start putting up your own money.
The world of trading is a thrilling one, where profits and losses can accumulate very quickly. This means it can be tricky to take the emotion out of trading, but it’s vital you do what you can to stay objective.
This is where a financial strategy can help:
- Set your risk level, goals, and entry and exit rules
- Stick to them no matter what your heart is telling you
Remember you can reevaluate this later on if your trading style changes or there are shifts in market conditions.
WATCH OUR VIDEO – TRADE NATION'S HEAD OF CUSTOMER SUCCESS RICHARD NATHAN ON FINANCIAL STRATEGY
The most important rule of any strategy is to only put in as much money as you can afford to lose. It’s easy to get carried away with excitement, but the last thing you want is to be hit by a loss that leaves you in serious financial trouble. Start small while you’re still a beginner and see whether you’re in a position to risk a little more as you become a more confident trader.
4. Find A Trading Platform That Helps Beginners
There are a lot of trading platforms out there to choose from, but they aren’t all invested in helping beginner traders take those first all-important steps. When you’re starting out, the best platform will be the one committed to furthering your education and supporting you every step of the way.
At Trade Nation, transparency is our top priority
We want each of our traders to have the fairest and fullest experience possible. Offering webinars, blogs, how-to videos and other useful resources, we’re on a mission to break down trading myths and explain the realities in a straightforward way all newbies will understand.
WATCH OUR VIDEO - NEW TRADER SEBASTIAN BATES ON THE IMPORTANCE OF TRANSPARENT TRADING PLATFORMS FOR BEGINNERS
We love hearing from you whenever you have any questions or queries about anything. Trade Nation is only as strong as its community and we learn as much from our members as they do from us. We’re only ever a phone call away if you ever need a helping hand.
5. Practice Until You’re Comfortable
Try out our free demo account to put everything you’ve learned into practice and see how our platform works. You’ll also get access to all the helpful resources we offer to Trade Nation members. Use this demo account until you’re comfortable and move onto the real deal whenever you’re ready!
WATCH OUR VIDEO - TRADE NATION'S HEAD OF CUSTOMER SUCCESS RICHARD NATHAN ON TOP TRADING TIPS
Once you’ve done your homework and have a few ideas in mind, hold your horses before trading your own money. Rather than rushing into anything and making a costly mistake, take as much time as you need to practice before you start trading for real.
Popular Questions From New Traders
Q. How Much Money Do I Need To Start Trading?
Trading is no longer just for the wealthy so don’t worry if you don’t have a huge bank balance. All you need is enough money in your account to cover the margin (a deposit you make to open your position) on the trade you’re making.
WATCH OUR VIDEO
- Trade Nation's Risk Manager Niall Healy on how much money you need to start trading.
Q. What Equipment Do I Need To Start Trading?
Forget about the images of Wall Street traders keeping track of multiple computer screens at once. To trade with us, all you need is a computer or smartphone. We also have an app with all the same functionality as our trading platform.
WATCH OUR VIDEO
- Trade Nation’s Risk Manager Niall Healy on what equipment you need to start trading
Q. How Important Is Regulation In Trading?
Regulation is very important as it means your trading platform is reliable, genuine and meeting industry standards. Your funds are far more likely to be at risk if you use an unregulated company. Trade Nation is regulated in the UK, Australia, South Africa and The Bahamas.
WATCH OUR VIDEO
- Trade Nation’s Risk Manager Niall Healy on trading regulations
Like what you see?
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