If you are new to the stock trading world, this may seem eerie if you have no idea what you are doing, especially when you see the fluctuating charts, you may be asking yourself
“ Should I buy now?”
“ Should I sell now?”
“Is this a good time for me to buy/sell?”
and many more hesitations that makes you feel investing is extravagantly complicated.
The great news is, trading isn’t as complicated as it seems!
So here are 5 things you (MUST-KNOW) including the strategies you can use to trade in peace.
1. Investing in the Forex market is one of the best options to start growing your income
Forex markets are a popular path for investment. You can take advantage of a variety of different strategies depending on your goals. Forex is a market that requires fewer resources to get started and it has the potential for you to earn quite an amount of money if you know how to trade wisely. In fact, most people who started forex trading as a part-time business tend to become full-time trader because they have earned high amounts of profits than they expected.
The key here is that the more you invest, the more profit you are likely will obtain. Everything starts from making smart decisions and continuously learning to win trades successfully.
2. Investing in the Forex market comes with substantial risk, especially in the short term... BUT…
Although Forex market demand has increased drastically with an average of 8% per year, the Forex market is considered a volatile market; especially if you intend to become a short-term trader. The market can swing wildly like nobody’s business and sometimes it can be quite extreme. However, don’t freak out! The good news is there are much more reliable pairs for you to go with and you can start with low-risk investment strategies depending on your level of risk because the goal is to focus on the amount of money you are willing to lose and earn.
As a beginner trader, it’s understandable that you are worried about losing money. So here’s the thing:
No matter what type of risk you can bear to handle (even if you are a professional trader), investors should be cautious when it comes to forex trading and understand that losing money is part of the trade because you can gain knowledge from there and slowly understand the market better. By then, you will be very thankful for losing just a few pennies because it can help you to avoid losing big money in the future.
3. Not diversifying your portfolio is the worst strategy ever
“If you invest and don't diversify, you're literally throwing out money.” -Jeff Yas
Diversifying your portfolio is one of the best decisions you should consider. It helps you save you during the bad times or bad luck so that skill and the good process can have the chance to pay back and earn profits more over the long run.
There are several ways for you to diversify your investment starting from investing in several companies or various sectors, investing in the foreign market instead of just the domestic market or different types of assets. Pursuing whether to go for value/growth type of investments will help you to have a clearer path on the types of diversification you want to proceed with.
4. Do proper research for the right brokerage/company
The importance of doing market research should never be underestimated. Before jump into trading, you must first decide what type of trader you want to be, the type of your risk that you can bear as well as services you need. Let’s say if you want to be an infrequent trader, you can consider going for a full-service or a discount broker. Or if you need an experienced trader to model their trading pattern and slowly learn from there, it’s strongly suggested to reach out to the potential master traders and learn from their pattern.
So here’s a tip for you: Find companies or brokerage that you think have the strategies that align with your expectations, requirements, and goals.
And if you are someone that has been trading for quite some time, you will also need to ace up your research game to become a more successful trader. Because reality speaking, you can’t technically complete your research or complete a course or webinar sessions in trading because the trading world is highly unpredictable and is always changing.
5. You can start as low as $100
We strongly understand beginner traders' main concerns. That’s right, the capital. We’ve heard so many rumors saying investing needs to start with a high amount of capital otherwise they will reject your account.
But that’s not entirely true! (Although some companies/brokerage will still imply this)
There are so many companies or brokerage that will accept trade starting as low as $100 (or even lesser!). This allows you to have a clearer picture of how trading life works and slowly leverage from there, just like how Eapps work. In Eapps, we will make sure our traders have learned something along the way and have proper guidance from start, and most important is to build a strategy together.
Determine your strategy is very important even with such a small amount of money. You need to consider how you will manage the trade, when to enter and exit, how you will manage the risk, losses, etc.
Trading can be very challenging for most inexperienced traders. This is why so many people decide to try in a small amount first. All in all, no matter if you are a new or professional trader, always remind yourself to exercise caution when making investments. It’s important to know your limits and when to stop/pause for a while. Stick with your goal - grow your income based on the decision that you are comfortable with.
Trade safer, trade smarter!