First steps for new traders – How to begin trading

Outsiders often think that trading on the market is a very easy and convenient way to amass a fortune. However, the reality is different. Trading is often complicated, demanding specific skills, experience and insight in the market and global economy. Still, if you play your cards right, you can really gain a lot. But where to start?    

Opening a trading account is a good place

While it may seem obvious, it’s not as simple as it seems. To achieve that goal, you need to find a good online stock broker first and then open a stock brokerage account. Even if you have a personal account, it’s a good idea to keep a professional trading account separate.

After you become familiar with the account interface, you can take advantage of the free trading tools and research offered exclusively to clients. Furthermore, some brokers offer virtual trading.

Read about the markets and the global economy

It really pays to stay informed. You can read financial articles, website tutorials, stock market books, and so on. There’s a wealth of information available out there. However, it’s not good to focus too narrowly on one single aspect of market trading. Better to study everything market-wise instead, including ideas and concepts you don’t think are particularly relevant at this time.

The Journey often winds up at a destination not anticipated at the starting line. Hence, your broad market background will come in handy, even if you are sure you know exactly where you’re going. 

Learn how to analyze and practice trading

Start with studying the basics of technical analysis and don’t forget to look at price charts in all time frames. Don’t forget reading company spreadsheets as well. They usually offer a trading edge over those traders who ignore them. After you master analyzing, though, it’s time to practice trading.