Do you want to start trading and don’t know where to start? I’m going to tell you (briefly) the first steps I took when I started:
1. I looked for information about what trading is, to know where I was getting:
The financial trading is basically and summarizing much, buying and selling underlying with the intention of making profits. You can trade currencies (Forex), indices, stocks, raw materials, etc…
The advantage of trading is that you benefit whether the price goes up or down. On the other hand, investing in stocks, for example, you only benefit if the price goes up, if the price goes down, you lose money.
2. I found out how I can open and close operations or trades:
The operations are carried out through a platform. There are many on the market, but one of the best known and most used is Metatrader 4.
3. I looked for how to get the trading platform:
The platform is provided to you by the broker for free. Normally they usually have Metatrader and their own platform, in addition, most brokers allow you to operate through a web platform, that is, without having to download any program.
4. I found out what a broker is:
The broker is the company that acts as an intermediary between you and the market . It is mandatory to operate through a broker, where you will have your account, which you must capitalize with the money you want to invest.
5. I looked for information on the different markets where I can trade:
In trading you can operate in different markets, but I looked for information on the best known such as Forex (currency market), CFD’s (Contracts for difference) and Futures. Each market requires specific knowledge, because although everything can be summed up to buy (BUY) or sell (SELL), each market has its peculiarities, its specific commissions, minimum capital to operate, hours, etc…
6. Then it was time to find out how much money I can start trading with:
The issue of minimum capital is very relative, because in markets such as CFDs or Forex you can open real accounts with up to $20 dollars (it depends on the broker). Now, if you open an account with 20, 100 or 200 dollars do not expect to live from trading in several months (better spend the money buying lottery). Another determining factor in knowing how much money to start with is whether you want to trade for extra money or you want to make trading your profession.
In the first case, if you only want to get extra money, with $2,000 dollars you can already get that extra money every month that you can use for your purchases, for that trip you have pending, to indulge yourself, etc… But if you really want to Live from trading, I recommend starting at least with $5,000 dollars (and from there on up). Even so, you will not be able to live from trading after two days.
7. At this point I started looking for trading courses and buying books:
Before opening an account, neither demo nor real, it is advisable to read books and sign up for a trading course and, once you know what we are talking about and what this is all about, you can now open a demo account at a broker and start trading. practice.
And remember, if you know what you are worth, go and get what you deserve.
Probably wanna read:
- How does the stock market work?
- What to do to invest in the stock market and make a profit?
- How to start investing in stocks if you have little or no experience?
