How to trade and make money on the exchange? Where to start stock trading training for beginners? What are the features of trading with a minimum deposit?
Understanding of the material, provided below, will help to remove the dark veil from exchange trading and will enable beginners to feel much more confident in the market.
Exchange Trading Features
To characterize the features of trading on the currency exchange, classify to start the financial market as a whole. It distinguishes three large segments: commodity exchanges, shares (stock) and currencies (Forex trading).
First important point – Forex is not localized anywhere, i.e. there is no specific building, in which traders gather for trading.
Forex Trading round the clock, but the market is closed at the weekend (Saturday, Sunday) and days of international holidays (March 8, New Year and others.)
Second. When buying currency, we «we borrow» money from a broker, and the guarantee of our solvency is the funds deposited into the account. The amount of money accepted into circulation can be determined by leverage.
Leverage — ratio, showing, what is the maximum transaction (lot) we can open, investing all your money.
Suppose, we have ten dollars, and leverage – 1:200. Hence, if we put all our money into the deal, then the maximum investment amount is $ 2,000.
When trading futures or stocks, we can only earn on the growth of their value. On Forex, trading is conducted in currency pairs – if one currency falls, then another grows. Therefore, you can earn both the rise, so on decline the market.
Currency pair, by which we open deals, indicated on the chart in the upper left corner:
How to make money on the stock exchange – 4 proven methods
People are mistaken, when they think, that you can earn money on the exchange only by speculation – not at all. Four proven ways to make money stand out in the financial market, let’s list them.
Method 1. Do-it-yourself trading
80-90 percent of all people on the exchange are engaged in independent trading – opens and closes deals in the hope of making a profit.
We conducted independent trading, opened deals, based on wave analysis. Investing 1000 dollars, for 20 days of trading we made a profit of 25,8 percent, now on the account 1258 dollars.
Beginners often wonder, what profit to expect and are rumors about 100-300 true% monthly income. Professional traders say, that with normal risk you need to plan 7-30% monthly income, no more.
Method 2. Trust management
For those, who is not yet ready to open transactions on the exchange independently, trust management available – you transfer capital to traders, they trade on it and share profit with you.
In most cases, trust yield – 10%. If we go to the website and see the profitability of PAMM accounts, we find much more impressive numbers:
The risk of losing all capital after investing in accounts with such high returns is very high, therefore, we do not advise to seduce and risk money.
Usually, under trust, no guarantees are issued to depositors – if the manager loses the money we invested, nobody will return them to us.
Method 3. Partnership programs
This method is suitable for, who has a promoted website on the Internet or another opportunity to attract customers. Brokers pay well for Internet entrepreneurs, attracting new traders to their trading platforms, therefore, the costs will pay off in full.
To successfully attract customers, it is advisable to create sites on the topic of stock trading: statistics show, that thematic resources give the greatest conversion.
The largest brokers are usually more promising in terms of partnerships: they offer high interest, quality promotional materials, interesting trading offers.
Method 4. Training for novice traders (for experienced market players)
By, who successfully traded on the stock exchange for several years and can demonstrate high profitability on a trading account, way to teaching opens: can conduct online or offline classes for beginners.
Those speculators achieve particular success in training novice traders, who are ready to submit their own trading strategies to the company’s court and prove their performance. Higher education in economic specialties also plays a role.
These are the main possible areas of earnings on the stock exchange. Now let’s talk about the success algorithm and choosing a broker.
How to trade on the stock exchange — 7 easy steps to success
Seven steps, which we list below, absolutely all traders go through.
Moreover, those, who follows the sequence, become professionals, and those who want to instantly jump from the first level to the seventh remain amateurs for life.
Step 1. Choose a broker
The more favorable conditions the broker provides, the easier it is to get successful trading, so you need to be careful about your choice.
Step 2. We train on a DEMO account
When a broker is selected, we create a demo account for $ 1,000 or another round amount and trade for a month according to the chosen strategy. Then we analyze the result. If profit is made – you can go to real deals, if the loss – little knowledge and experience yet.
Step 3. We develop our own trading strategy
By our own strategy we mean a set of methods, used in the process of trading. When we traded, they opened deals according to the rules of wave analysis and patterns.
The sequence of strategy development is presented in the table:
|1||Basic knowledge||Understanding Forex Functioning, master the terminology|
|2||Trading period||Choose short or long term trading|
|3||Type of analysis||Choose the main type of analysis, which we will study: classical, wave, candle or indicator|
|4||Analysis of existing strategies||We study the strategies of successful traders in the chosen direction|
|5||Developing your own strategy||We create an author’s technique based on the knowledge gained|
Strategy development seems complicated at first, but after mastering the market difficulties will not arise.
Step 4. We open a real account
To open an account for real money, just make a couple of clicks on the broker’s website, sometimes it is required to be verified – send screenshots of passport (as is the case with Xtrade).
After opening an account, you need to deposit money on it and begin serious exchange speculation.
If you do not have a lot of money to trade – no problem. Top brokerage firms, among which makes it possible to speculate «copecks» — enough to open a nano-account 1-2$.
Step 5. We get the first profit
Following the Four Tips, listed in the final part of the article, coordination of all actions with the trading plan usually leads to a positive result – profit is recorded on the account.
Step 6. We increase trade capital
Professionals advise not to deposit extra money into the account until, until the starting deposit doubles. One hundred percent profit indicates that the trader has sufficient experience and a well-chosen trading strategy.
Step 7. We leave in a stable profit
When the capital is doubled and replenished a trading account, trader’s goal – stable profit. At this stage, we devote as much time to trading as possible and take our emotions under full control.
Different people take different steps to complete the above seven steps, but sooner or later all come to the result, who tries and realizes the seriousness of his intentions.
What to look for when choosing a broker
Choosing a broker – difficult and responsible business, you need to approach it in all seriousness. About many criteria, which professionals usually pay attention to, we already wrote in the material «Forex Brokers», Below we indicate a number of important points.
Beginners are not so important features of trading (spreads, leverage, lots), how much opportunity to learn and successfully penetrate the depths of financial markets.
Thus, priority in choosing a brokerage firm, we recommend giving services, offering free tuition, and multi-level, and not focused only on beginners or exclusively on the pros.
Some brokers offer to work on new trading platforms. Trusting untrusted software right away is risky – better than the traditional Metatrader so far no one has come up with anything.
MetaTrader4 (MT4) — electronic terminal for trading on various financial instruments. Used by most major brokerage firms.
Another important point – promotions and bonuses. You need to be careful with them: any bonuses, provided by a broker, not handed to the trader just like that. To bring them out, need to open a large number of transactions.
You have to be especially careful with deposit bonuses – when the trader receives them, broker freezes and bonus, and seed capital. A novice speculator finds himself in a trap – he will not be able to withdraw money for several months.
Reviews about brokers – doubtful thing, since in almost all offices they are negative (most people lose their money on the exchange). Better analyze licenses, legal addresses and legality of operation.
When the choice is made, it is worth taking note of the advice from experienced players in the foreign exchange market.
How much to earn on the exchange – useful tips from experts
For trading on the currency exchange or other market segments to be successful, a trader should follow four tips, trained by professionals.
Tip 1. Do not invest too much from the very beginning
If the trader completes the first transaction successfully, he has a sense of superiority over the exchange — he begins to consider himself the greatest professional of all. The result of such confidence is often the loss of all capital.
Do not invest too much money, so as not to lose the desire for success after the first possible losses, limit your capital to 200-300 dollars.
Tip 2. Do not use leverage initially
After several days of trading, the newcomer understands, that controlling yourself is not so easy. Until, while self-control is not sufficiently trained, do not trade with a large leverage (otherwise, under the pressure of emotions, you can open a deal that is too big and destructive for a deposit).
Tip 3. Before investing real money, be sure to practice on a DEMO account
Before real trading, it will not hurt to check your emotional readiness and performance of the chosen strategy on the Demo. Don’t think, that you are missing out on some great features – the exchange will not go anywhere in a month or a year.
Tip 4. Never make decisions with emotion
People, not traded before, ignore this advice: they believe, that their minds always control emotions. But professional traders know – the first days of trading for real money prove otherwise.
Following these tips will avoid many mistakes and difficulties on the path to success.
We talked about the path of a successful trader and listed tips, which must be followed by those wishing to succeed in the stock market game, and also described the opportunities and prospects of cooperation with various brokerage firms.