The world of online trading has grown exponentially in recent years and continues to do so across the globe. Technology has improved market accessibility tremendously, making trading for beginners and for anyone much easier, as long as there’s access to the internet using laptops or mobile devices. But just because it is so readily accessible now doesn’t mean that you should take online trading lightly, especially if you’re a beginner.
You need to be prepared and aware of the trading basics before diving into it straight away. We’ve outlined the top 3 tips to help you get started on your journey to becoming a smart trader.
1. Do your research
Good research is key to online trading, and, as a beginner, your research should focus on two important things — finding a trustworthy broker and understanding the markets you want to trade.
Selecting a reputable broker is crucial. Make time to read reviews about the broker you’re eyeing, how they manage thriving markets, and the variety of platforms they offer. Go for a broker that offers user-friendly platforms that are suitable for both beginners and experienced traders. Check out its list of trading assets, so you have options to choose from and can diversify your trading portfolio. Most importantly, verify that the broker is properly licensed and regulated.
Once you decide which broker to trade with, selecting your assets to trade is your next step. The process of choosing the asset to trade doesn’t differ much from finding the right broker. It entails time and research as well. Having a solid understanding of each market’s assets will help you make deliberate and smart trading decisions. It would help to consider market trends and world events, too, as these factors significantly affect price movements.
You can trade on assets in various markets — from trading CFDs on forex, stocks and stock indices, commodities to cryptocurrency. Diversifying your portfolio is a smart way to trade because it can protect you from losing all your money in case a market moves against your prediction.
If you think researching markets could be a bit much for you, you can start trading synthetic indices on Deriv. Synthetic indices simulate real-world market movement. Its movements are based on a cryptographically secure random number generator audited by an independent third party to ensure they cannot be tampered with or manipulated.
Unaffected by natural events and free of market and liquidity risks, synthetic indices offer you the flexibility to trade different synthetic markets with high or low-risk characteristics. These indices are available to trade on Deriv 24/7, even on weekends and public holidays. Go ahead and sign up for a Deriv demo account and try trading synthetic indices.
2. Use a free demo account to test out your trading strategies
The best traders hone their skills through practise and experience, part of which involves handling losses. Most licensed and regulated brokers offer their clients a demo account pre-loaded with virtual funds.
Demo accounts provide the same trading experience as real accounts, which helps new traders familiarise themselves with the trading platforms.
The demo account for each of the platforms on Deriv will allow you to practise trading before deciding to trade with real money. To set up a demo account, you simply need to register with Deriv, create your login credentials, and select the demo account option. Your demo account will be credited with 10,000 USD virtual money so that you can open trades, practise trading, and sharpen your strategies.
We recommend you practise your trading strategies on one or more platforms to find one that works best for you and improve your strategies before jumping on a real account.
3. Enjoy the process and practise patience
Getting started can be a real challenge, but it’s best to take your time and enjoy the process.
When it comes to online trading, patience is critical. Practising patience with your trades may help you discover what strategy works best for you. Never open a trade just for the sake of trading. It would be best to trade only when you’re confident with your strategy, considering the external variables that may affect the market you’re about to trade.
It’s also important to note that to keep a disciplined approach to online trading you should develop a strategy and stick with it. Trades don’t usually result in massive payouts. Losses are likely to occur, so stay realistic.
Many successful traders share the same characteristics. As a beginner, you could marvel at their success but, most importantly, analyse what made them successful. If you want to learn what these traits are and how these pros plan out their trading strategy, check out our Useful tips on how to trade online blog post based on the ebook written by Vince Stanzione, “7 Traits of Successful Financial Traders.”
You might get inclined to start trading right away, but following these simple tips will help you get started quickly and keep you on the right track. With research, experience, and patience, you too can navigate your way to trading success.
Disclaimer:
CFDs on cryptocurrencies are not available for clients residing within the United Kingdom.
