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The trading world does not stop gaining new followers. Many tools have also been developed to make the task easier for investors. But since the trading sector, like many other sectors of activity, has its little tricks, it is important for newcomers to know how to approach it in order to make good investments.
In this article, we will see how newcomers to the world of trading can behave in order to be successful.
What is trade
Trading is an English term still used in French to denote the buying and selling transactions that take place in the financial markets. If in the beginning these operations were carried out by investors who are still called “traders” from the trading rooms of stock exchanges or financial institutions, today the situation has changed a little more. Now, thanks to the Internet, it is possible from any geographical position (as long as the country’s regulations allow it), to carry out your trading operations. Do not hesitate to visit the Droitdunet website to learn more about this trading activity.
How to take your first steps in trading
When you want to start trading, you need to follow certain steps described below
Choose a broker
The broker is, in a way, an intermediary between the financial market and the trader. Obviously, the trader chooses the action, which must then be carried out by a broker. Although anyone can claim to be a trader, not everyone can be a “legitimate” broker as this sector is highly regulated. Today there are a multitude of brokers around the world, each with their advantages and sometimes their disadvantages. Among the best brokers we can mention:
- eToro: It is one of the best brokers and, above all, a broker suitable for beginners. In addition to having an intuitive platform, eToro provides traders with a wide range of tools. With this broker you can be present in the financial market for CFD, at the commodity level, invest in stock market indices, cryptocurrencies… This broker also has a demo account.
- Libertex: Appeared on the market in 1997, this broker is also talked about. With this broker, you will be able to trade both via the web application and via the mobile application. Among other assets that you can invest in, we can mention: CFDs, cryptocurrencies, commodities…
Create your account
As soon as you have chosen the broker that suits you, after checking its legality and its offers, open an account. In general, opening an account is not a very complex operation. Information will be requested such as your name, first name, email address, etc. Once you have completed filling in these various fields, the broker’s team will check the information you have entered to validate the creation of your account .
Operate the demo account
When you are new to trading, it is always best to learn how things work before investing your money. With demo accounts, you have the opportunity to understand the realities of trading without first crediting your account with your broker. In addition to demo accounts, many video tutorials are made by professionals to inform you of the necessary techniques.
Make a fund contribution
To start your first investments, you must credit your account. But it must be remembered that trading, in addition to the benefits that can be gained from it, involves a good deal of risk. As much as you can gain so much it is possible for you to lose everything. It is therefore necessary to avoid investing money that you have lent to e.g. a bank, to invest all your savings… In general, it is advisable to invest “what you can lose”. Brokers often offer you a number of different payment methods to fund your account. Bank transfer, bank card (VISA, MasterCard…), electronic payment (Paypal, Skrill), cryptocurrency… Cryptocurrencies are not necessarily for the public, as they are not like the traditional currencies that we use. It is also possible that you have a minimum amount for your deposit. It all depends on the broker you choose.
Make your first investments
Now that you have credited your account, you have the opportunity to act on the financial market. Depending on your skills or preferences, you can invest in forex, the stock market, cryptocurrency or other assets. Be aware that some brokers like eToro offer you to buy FDJ, Google, Amazon, Netflix shares…