7 Valuable tips every trader should know...
If you’re planning on opening up a trading account and becoming an overnight billionaire, think again. Trading requires discipline and hard work and typically only suits individuals with a genuine tolerance for risk. But the rewards can be well worth it!
Here are a few trading tips (for new and experienced traders alike) from Nilan Morar (Head of Trading) and Bradley Leather (Founding Member) of GT247.com
1. Do your research
Don’t even consider trading until you have done your own research and educated yourself on the markets, the products you are trading and what makes these products tick. Track the instruments you’re interested in, read the research of reputable market commentators (even if you have to buy the research, it can be a very worthwhile investment), and understand the risks associated with each strategy you employ.
2. DIY or partner with an online stockbroker
There are several online platforms that give DIY traders the ability to execute their own deals. If you prefer a bit of hand-holding, guidance and advice, use a reputable online stockbroker – who comes with ready-made research and provides an additional eye on both local and global markets!
3. If it sounds too good to be true, it probably is
If anyone offers you guaranteed returns that seem unrealistic with little or no risk, step away. If it were that easy and they were that good, they would have retired long ago!
4. Plan your trade; trade your plan
If you have a successful strategy keep to it, and do not deviate from it. But if you’re uncomfortable about your position, get out immediately!
5. Be patient
There are a lot of people who have profited, and continue to profit from trading… but it doesn’t come easy! Successful traders have all learnt their lessons the hard way and have taken losses along the way. However, through hard work, time, dedication and keeping to your trading disciplines (i.e. knowing when to take profit or losses, and when to get out of your trade) you can make a success of trading.
6. Understand trading versus investing
Trading is not for everyone and must not be confused with investing. Investing is a long-term activity that involves putting money away on a regular basis for a number of years. Trading involves looking for under or overvalued assets and offers you the opportunity to profit from making the right decisions at the right time.
Trading takes a special mindset and it’s vital that you understand the risks involved before you start.
7. Never trade with money that you can’t afford to lose
If you are trading to pay your bills, stop immediately and contact a reputable financial adviser. At this stage of the game, the help you need isn’t going to come from your trading account.
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Disclaimer: Any opinions, news, research, analyses, prices, or other information contained within this research is provided as general market commentary, and does not constitute investment advice. GT247.com will not accept liability for any loss or damage, including without limitation to, any loss of profit, which may arise directly or indirectly from use of or reliance on such information. The content contained within is subject to change at any time without notice, and is provided for the sole purpose of assisting traders to make independent investment decisions.