Want to make some money? Thinking about investing in the stock market, but don’t know anything about it? Don’t know where to start? Know that the world of investment can bring you big profits by mastering trading well.
Find out everything you need to know about trading before you start trading.
Investing in 2021: what is trading?
Trading is an activity consisting of buying and selling financial assets on various markets such as currencies, stocks, derivatives or commodities. The objective is to make money by making a capital gain. Trading can be an exciting hobby and a perfect source of income. Trader has become increasingly popular in recent years across the world.
Before you get started, determine your trading style and the assets and markets you want to trade. Next, open an account with an online broker. Practice first with a demo account and once you understand how it works and you feel comfortable, place your first stock market orders!
Investing in 2021: why become a trader?
Your motivations are important. You need to know your reasons for trading. Ask yourself: why become a trader? Why trade? Indeed, if you start trading with bad motivations (wanting to become rich, working from home and not being accountable to anyone, etc.), you risk being quickly disappointed. You must not take superior risks to achieve these bad goals. Trading is not a hobby or a way to get rich quick without doing anything. In addition, professional traders as well as robot traders practice automatic trading. Trade seriously!
Choose trading because you like to trade, because you want to know more about the macro-economy and the financial markets, and because you want to practice an activity that allows you to use your concentration and analytical skills.
Investing in 2021: the risks of trading
The risks of trading are numerous. The most obvious is capital loss. Indeed, you can very well lose the entire amount invested, or even more on derivative products with leverage effects. Moreover, becoming a trader means working alone from home. This may seem like an advantage at first. Nevertheless, you may feel alone and isolated afterwards with your failures.
You won’t have anyone to advise you. You will be the sole master of your decisions. You must therefore know that you can only count on yourself. It is very important that you practice on a demo account first. Prepare for the order book and charts. And above all, get informed by reading articles, following webinars and live trading.