From other side, if you have ten dollars in your cent account, but you know how to trade, developing this skill better and better, then increasing your trading account and making a profit is inevitable in the long run. Learn how to make a dollar out of ten dollars first. Then ten dollars out of a hundred, then a hundred out of a thousand dollars, and so on. Everything else will come in due time.
A key skill in trading is the ability to melt negative experiences into positive ones. Get back on your feet after bumps and falls. Learn every day. Have you leaked the deposit? It doesnt matter. Consider this your payment to the market for training. An inexpensive payment for invaluable experience, investments that will definitely pay off in the future.
Recommendations:
Novice private traders, as a rule, do not have much capital. And there is not the slightest reason for despondency, fear, discontent. Because you have something much more valuable time. Spend your time wisely and the money will come after him. You dont have to worry about that.
Trading is impossible without constant self-education. Read high-quality professional literature, instead of mindless nervous monitoring of the price in the terminal or reading anonymous articles on the topic How to get 1000% profit per month. One book a week is an absolutely real task if desired. Fifty books a year (well, let it be twenty, or at least ten) is already a serious theoretical basis. One hundred books read are already expert level. Your capital, which is always with you.
Set yourself real goals: first, survival in the market. If you dont lose money for three months, its not bad. The first, the most important and difficult step, you have made. Stability in the long term is of critical importance. By analogy with chess, a child can also take someone elses pawn. But winning the whole game is quite another matter. Its the same in trading: to accidentally catch a powerful trend and take 10% of the deposit is about nothing. It is much more difficult to consistently show a result of 2% profit on a monthly basis.
A few words about brokers
Any advertising is characterized by aggressiveness and exaggeration.
Drink Coca-Cola!.
Drink and dont think. Dont you see in the ads that those who drink this soda are insanely happy surrounded by cheerful friends? Having calmly judged at least a couple of seconds, it is obvious that a can of lemonade will not make us happy. And this drink also does not have the property of attracting new friends. And thats for sure. Therefore, a person needs to be emotionally stunned: to throw into the consciousness and subconscious attractive images that are not always connected with reality.
We will talk about advertising financial services.
A familiar advertising image: a sad depositor is not satisfied with the amount of interest offered by banks. But then oh, a miracle! kind and generous brokerage companies are rushing to help. You are offered to install the application on your smartphone and immediately start trading stocks, bonds, currencies, oil and other financial instruments. Do I need to explain that money should immediately fall from the sky, in bundles of dollars or euros, who likes what? Its a small matter you just need to open a brokerage account and poke the buttons in your smartphone. Arbitrarily.
And now lets get back to real life.
Brokerage companies (hereinafter referred to as brokers) are intermediaries between a person and financial markets. Trading on exchanges is conducted in lots, for example, one standard lot for the EURUSD currency pair is $ 100,000. It is clear that the vast majority of private traders do not have such free money, which means that the road to the exchange is closed for them. Brokers earn money on this by offering a person so-called leverage or margin trading. A person opens a relatively small account, say, $ 1,000. The broker sets the leverage of 1: 100, there are options more or less in the account settings. And a person can trade one lot of $100,000 on the exchanges.
The question is that the broker does not cease to be just an intermediary. Which is not responsible for the results of your trading, does not guarantee profit, does not protect against losses. This is not a bank, although large banks often combine banking activities with brokerage. This is not a bank that is responsible for the safety of your money, although large banks often combine banking activities with brokerage. But a brokerage account is by definition an account for independent trading. It is simply stated in the smallest letters in the contract or public offer, in legal documents that few people read and understand.
Therefore, do not try to be someone who you are not yet.
If this morning you are not an investor or a trader this is not bad and not good its just a fact. You may also not be a neurosurgeon or a translator from Chinese. And it doesnt matter how much money surgeons or translators receive, you just dont have that competence yet.
Wanting a lot of money is not a profession.
This is a desire.
Which in itself does not bring money.
It is important to understand that without proper preparation, you will get lost with a scalpel in the operating room or in front of a stack of pages with Chinese text. You will also get confused on the stock exchange, where prices change every second and most often do not go where you would like. Trading is generally one of the most highly competitive professions in the world, according to statistics, only about 2% of participants earn steadily on the exchange.
In conclusion, we will say about those cases when the broker has an offshore registration. You will not be informed about this in advertising, you need to read the notes typed in microscopic text yourself, on the website or in the contract. If you see any Virgin Islands or Saint Vincent and the Grenadines (often the English text is not translated to impress the client with solidity, to present yourself as an international financial company), know that this broker is outside the jurisdiction of your country. You will not be able to apply to the court of your country, they will not accept a statement of claim from you, or they will refuse later.
Therefore, double-check the selected brokerage company according to these criteria, it may save you a lot of time and money.
Skill levels
Unconscious incompetence
The ancient Greeks said:
The beginning is half of everything.
Indeed, the importance of starting in any business can hardly be overestimated, and trading is no exception. Lets try to figure out what these first steps should be.
From personal experience I am a private trader in the Forex I will say this: the first step should start with the truth. In the first place, you should put the correspondence of the chosen type of activity (in our case, trading) to your personality, your character. If we are going to engage in trading professionally (at least to earn, and not to lose money; at most to get rich), then lets think about whether this profession is suitable for us at all.
The question is not as simple as it seems at first glance.
This apparent simplicity (I thought a little, saw a trend, pressed the buy or sell button, opened a deal, closed a deal, withdrew a profit) is deceptive. Rarely anyone writes about the dark side of the Moon, about the strict requirements for the profession of a trader. Most likely, you will not see this in the advertising company. For example: Put a hundred dollars in the account, get a bonus, buy a trading robot and dont worry about anything else. You will not read about this in numerous self-help books on trading, with titles in the spirit of How to make a million lying on the couch or Its easy to play on the stock exchange.