Being a trading rookie, the world of trading can be so overwhelming; nevertheless, it still remains one of the most rewarding tasks a person could ever face with the effort that every person needs to put in while learning. Be it stocks, forex, commodities, or even cryptocurrencies, all are worth trying, provided you know where to get started. This article takes into account the steps that one follows in order to start trading on his own. Gaining an Understanding of the Basics
To begin with, there is a need to define what an elementary basis is and basic terminologies that mean the following:
Asset: These are various classes of financial instruments involved in the trade of stocks, currencies, commodities, and indices.
Market: This is the venue where trading takes place, such as stock exchanges or foreign exchange and cryptocurrency exchanges.
Trading Strategies: techniques used by the traders in order to predict about the market trends and therefore make decisions include day trading, swing trading, and scalping
There are risks in every trade and one should also be prepared to incur losses with the gains.
- Select A Market That Suits You
Stock Market: This involves the selling and buying of shares in companies.
Forex Market: This deals with currency exchange. It is termed the biggest financial market in the world.
Commodity Market: This would mean this is a trade concerning raw materials. The common examples in the commodity market are gold, oil, and agricultural products.
Cryptocurrency Market: This market involves several digital currencies that are traded. Examples include Bitcoin and Ethereum.
Which market to choose depends on your interests, your risk tolerance, and how much time you will put into learning about it.
- Get Educated
It would be fair to say that if you want to learn the nitty-gritty of trading in less than an extremely short time, taking a course in trading is one of the fastest ways. Courses are free or paid, right from basic to advanced concepts of trading. Profithills Education conducts courses for both fresher and experienced traders covering topics such as:
Technical Analysis
Fundamental Analysis
Risk Management
Trading Psychology
These will provide the necessary reinforcement to build a really strong foundation and shorten the learning curve.
- Technical and Fundamental Analysis Study
In essence, there are two kinds of very important market analyses:
Technical Analysis: This is the study of the past as to price actions, volumes of trade, and other data about the market, with a view to forecasting its future movements. Chart reading, trend identification, and use of indicators such as moving averages and RSI are basic skills to be acquired.
Fundamental Analysis: This is the study of the financial health and performance of the company or of the economy in order to estimate the intrinsic value of the asset. It would include things such as a study of the financial statements for stocks or economic indicators for forex.
