Find out your markets
Find out about the markets and decide how you want to trade
Start by reading up on how the stock market works and learn about the different markets available. A good starting point for new traders is to study the different trading styles. These options could include:
- Day trading
- Swing trading
- Scalping
Day trading is when a day trader places a trade that they want to capitalise on the price movement of a stock on the same day that they place the trade, rather than looking to execute a trade overnight.
Scalping is a very fast paced style of trading where you have to get in and out of a trade very quickly. You take smaller profits with the aim of doing this a few times to add up to larger sums of money.
On the other hand, swing trading is generally defined as short-term trading that lasts longer than a day and less than a month.
Learning a style that suits your psychology and skills is crucial. For example, if you are an over-thinker, then you are probably not best suited to fast scalping and would rather engage in daily position trading or swing trading.
Practice, practice, practice
Practicing strategies in Exness mt4 and learning to control risk over and over again are two of the most important aspects of being successful in the world of stock trading.
If you want to get into trading but don't feel like an expert, it is crucial to practice on a simulator before you start betting real money.
Most stock brokers have a proprietary simulator platform built by traders for traders. You have all the tools you need to learn how to trade, including hotkeys, advanced charting, Level 2 and much more!
Decide on a broker
Your choice of broker should be influenced by the type of stock trader you are and how much money you will be trading with. No single brokerage firm is good for all traders, so it is always a wise decision to determine your trading style before you start trading.
However, there are some general things you need to consider when choosing a broker:
- Execution speed: this is an important thing to consider due to the high number of trades you are likely to make in a day.
- Trading platform: Make sure your broker offers a trading platform that suits your trading needs. The platform must provide crucial tools such as advanced charting tools to help you improve your trades and make informed decisions.
- Costs: Stockbrokers charge some fees and commissions for offering their services (facilitating transactions) to traders. Find out how the fees are calculated and how much they will be. There should be no hidden fees and any fee incurred in facilitating transactions should be explicitly mentioned.
- Legal compliance: You also need to ensure that your broker is regulated by a financial authority. This will protect you from unscrupulous brokers. A regulated broker will be legally bound to protect your financial interests.
- Client support: Customer support is crucial when choosing the best stock broker. Look for a broker that offers round-the-clock support and is easily accessible to help you resolve any issues that arise.
Once you have selected the broker you will work with, it is time to open a brokerage account with them. You can usually open an account online in about 10 minutes, provided you have all your documents and information to hand.