Disclaimer: As with any investing decisions, do your own research and know/understand what you’re investing in. This is purely informational and not professional advice.
Does the thought of a lifestyle trading the markets excite you? There is nothing more satisfying than closing off your first winning trade. However, trading has many risks and pitfalls, if you are not adequately prepared to face these challenges, then you could end up losing a lot of money.
Here are some advantages of starting a career as a trader and some tips to help you get started in your new profession.
The Advantages of Becoming a Trader
#1 No Boss
Are you tired of your boss telling you what to do? The markets have no boss and no-one telling you what to do. If you want to place ten trades or just one for the week, then that is a decision only you can make.
#2 Total Accountability
Being a trader is a solo career choice. There is no-one telling you what to do, but there is also no-one else to take the blame if things go wrong. You are completely responsible for every trade you place and while you may not be able to control the outcome, you can control your engagement with the market.
#3 Work from Home
All it takes to trade is a home PC system with decent computing power and a high-speed internet connection. Imagine the thrill of waking up in the morning knowing that you do not have to fight traffic on the way to the office.
#4 Work Less
Traders do not trade the markets every day. There are times when you may not place a trade for an entire week. This downtime gives you the opportunity to study up on your trading activities and skills. Use your downtime to increase your knowledge and keep up with market events.
#5 Instant Liquidity
Trading the financial markets means that you will always have access to capital. Most brokers will offer a 24-hour withdrawal service that allows you to access your money quickly in the case of a financial emergency.
4 Tips for New Traders
#1 Knowledge is Power
Get educated. Tips and signal services should not be your key indicators of whether to enter a trade or not. If you are not educated and don’t know what you are doing, then you are just gambling. In gambling, the house always wins and your trading experience will be no different. Take the time to enroll in a trading course to learn the basics of trading and money management before you place your first live trade.
#2 Learn Money Management
Keep an eye on your account balance at all times and never trade with money that you cannot afford to lose. Avoid excessive leverage and trade within your means, the returns may not be as significant, however, the losses will be easier to live with. By understanding the mechanics of the trade and what you can expect to win or lose, will put you in an empowered position to take control of the trade, instead of letting the market control the trade.
#3 Open a Demo Account
Practice, practice, practice. Before you even think about opening a live trading account, open demo trading account should be your first priority. Practicing on a demo account will help you understand the technicalities of trading software and market movement. Practice on the demo account until you are ready to use your own real money.
#4 Risk vs. Reward
Do you have clear, defined rules of engagement for your trading? If you don’t, then stop trading right now. You need to understand the level of risk and reward with every trade. This strategy will help you clarify when you need to enter and exit the market and what profit or loss you intend to take before closing the trade.
Trading can be a very rewarding career, and it can also be a nightmare, depending on how you approach it. Take these few tips and apply them to your trading career to become a profitable trader. Don’t forget to use the latest version of trading software and download metatrader 5 real account to your device or PC.