9 Critical Steps to Start Stock Trading from Home
Stocks trading has never been more popular, with many new investors joining the game every day. Being your own boss, enjoying flexible hours and having control over your money, what’s not to like about stock trading?
If you have additional funds available and are looking for an extra income stream, then you’ll probably be wondering how to invest in stocks.
Trading is not simply throwing money around, hoping to get something back. There are specific ways that successful traders will play the game that you should learn first. Some good resources include books on trading or magazines on finance.
If you’re interested in learning more about someone else’s ideas on trading, then find a trusted brokerage, like Saxo Bank in Dubai, and make use of their free online educational resources.
Decide on the type of trader you want to be
There are two different trades that you can become involved in. These are directional and non-directional trades.
Directional trading involves buying or selling based upon your opinion of which direction the market will go in next. These are high risk/reward trade types but with greater rewards, if done correctly.
Non-directional trading involves researching values and potentials in stocks so that when the right time comes for buying or selling, you know when it’s best to do so. It requires lower risk than directional trading but is harder to master because of less certainty if your strategy works.
Get your trading account set up.
Think about opening an online trading account rather than a traditional one at a banking institution. They will do everything for you online, which makes things easy with executing trades.
Find stocks to invest in
One essential part of successful trading is investing in something that has potential value. Not all companies are equal; some make better investments than others. Do proper research into companies that interest you and look into their financial reports to see if they are a sound investment.
Learn how to read trading charts
Successful traders will tell you that reading stock charts is one of the most important parts of investing. Charts may seem confusing at first, but all it takes is a little practice and patience. After investing time into understanding how to read and analyse them, you’ll be charting like a pro!
Start with small trades.
Now that everything’s set up and you’re well educated on different aspects of trading, now it’s time to dig for some big money-making trades! Don’t start trying for your first big cash win straight away when starting in trading. Take it slow at first and test out different strategies with small trades.
This way, if something goes wrong or you make a silly mistake with your trade, there isn’t much at stake. Once things are going smoothly, then increase your risks gradually by opening more significant positions. It will give you more room for error when trying new techniques and keep the excitement in trading high!
Review & adjust your strategy
Once you’ve been trading for a little while, it’s time to look back at your success rate and try to find areas you could improve upon. This will keep you on the top of your game and help ensure your long-term trading success. Once you’ve got things ironed out, it’s time to hit the market again!
Don’t give up
Even experienced traders can be wrong sometimes. If this happens, don’t panic about it or think of yourself as a failure. It’ll happen from time to time; what matters is how we deal with these situations when they arise. If an investment doesn’t work out the way we want it to, analyse why and learn from our mistakes, so we don’t make them again in future trades.
No one is ever fully ready for everything that could happen in the markets, and there’s always new strategies and techniques to discover and master. Think about reading blogs, newsletters or books about trading regularly so you can keep up with any tips or advice that could be useful in your future trades.
Whether you’re a seasoned professional looking to take on some new challenges or just starting, following these nine steps will put you well on your way to becoming a successful trader!