Platform trading – trading investments using special online software – has brought the trading floor into everyone’s homes, enabling anyone to take control of their investments. If you’re new to the practice, there are a few tips that can help you get the most out of your platform trading efforts. Our five tips should get you off to a great start.
Research Strategies
If you’re just starting out, you don’t want to go in cold. Instead, do a little research with your trading platform, online resources and friends to get a feel for the strategies you’re most comfortable with. Many investors mimic strategies used by other traders on the same platform, but some prefer developing their own. Once you figure out how you want to approach your investments, be prepared to stick to the plan.
Stay Disciplined
When you’re a beginner, being disciplined is incredibly important. And incredibly difficult. Acting impulsively can be counterproductive. Stick to your strategy and avoid allowing greed or fear to change your trading plan. Additionally, it’s worth noting that for beginners and experienced traders, consistency is key. Plan to trade during the same hours every day.
Manage Risk
You have two main ways of controlling your risk: daily risk and trade risk. Manage daily risk risk by capping your daily losses. Similarly, you can manage your trade risk by setting a strict percentage of how much you want to risk of your capital on each trade. Both management techniques are designed to prevent one trade or one day from destroying your week or month.
Choose a Market
For those just starting out with platform trading, picking a market that both interests you and meets your budget is particularly important. Some of the major markets include stocks, the shares in companies; forex, a market that trades currencies; and futures, in which you trade things like gold and crude oil. Many beginners start in the forex market because it’s among the most affordable.
Get the Necessary Tools
You don’t need much to be successful, but you will need a few items to make platform trading possible. A laptops or desktop computer is essential. You’ll also need a fast internet connection and a platform that suits your style.
