How to Start Trading Career: HeartBeat Social Trading or Own Decisions

It is not an easy task for beginner trader to make their first profits. While charts may seem evident, most neophytes lose their money if they try to beat the market guessing future prices. Here is a brief guide on how to start a trading career. You will also learn about HeartBeat's social trading service that will help you to make your first profits even if you are not ready to make your first trades on your own.

Learning the basics of trading

Trading looks like one of the easiest ways to make money. A trader buys an asset, waits for it to grow, and then sells it. The difference between the initial and the final price is the profit. When you look at a naked chart, you can see the price going up and down. It seems evident for most beginners where to buy and to sell.

However, when most newcomers start dealing with real-time quotes, they lose money. The main reason is the lack of knowledge about financial markets, price drivers, basic principles of supply and demand. If you are looking at the price history, you see all trends. However, when you need to make a decision, you need some knowledge.

The first thing one has to be aware of is how the financial market work. The price of the assets is the result of all long and short trades. If an asset is in demand, its price will grow. Once the number of sellers exceeds the number of buyers, the price goes down.

There are two main ways how to forecast quotes. You can do it by using technical or fundamental methods. Let’s get down to both of them.

Technical analysis is about charts and indicators. You will deal directly with the price. The main goal is to use previous price fluctuations to predict the upcoming quotes.

This forecasting method is based on Charles Dow’s ideas about stock markets. He defined several concepts, which were developed later by other traders to become one of the most powerful ways of price forecasting.

Technical analysis includes algorithmic and graphic parts. You can use various indicators to predict prices. Apart from those tools, there are many patterns that you can see on the charts and use to become a successful trader.

Fundamental analysis is about economics. By using this forecasting method, traders try to understand how the current global and local economic situation may impact financial markets. While the technical analysis does not require any special knowledge (you can learn a particular indicator and how to use it), the fundamental prediction method can be used only if a trader knows economics.

Creating a strategy

After you have chosen your favorite analysis method, the next step is to create a strategy. Most traders select the technical method is it seems to be easier. Their strategies are based on indicators or graphic patterns.

What is a strategy? This is a set of rules that one will use during his trading career. This set of rules include exact signals that an indicator or a graphic pattern gives. For example, if you use a couple of Moving Averages with different periods, their cross may be a signal to buy or sell an asset.

Professional strategies aka trading systems include money management rules as well. They define how much money you can risk at a particular trade. Seasoned traders use stop loss to protect their positions from higher risks. They also place take profit orders to define how much money they will take if their forecast was right.

Social trading as a helping tool for beginners

All the above written is the only way to succeed if you are at a starting point currently and want to become a successful trader. Most newcomers don’t make money at the beginning as they are not ready to trade on their own. There is a way to change the situation when you start cooperating with social trading services like HeartBeat.

What are those platforms? They allow you to subscribe to skilled and successful traders and copy their trades. This means the positions that those traders open will be automatically duplicated on your trading account. If they win, you will have profits. Otherwise, you will lose.

Social trading services are numerous nowadays. However, only a few of them are worth attention. HeartBeat, in particular, is considered to be one of the simplest ones meaning you don’t need to do much there to subscribe. Simple yet functional. There are plenty of tools inside that will help you to make your best decisions.

For example, you can look at the trading results of any skilled trader there. If the percentage of profitable trades is high, this is a good candidate for your managing traders’ portfolio. The members of the social trading network have various perks that will help beginner users to understand who is the best.

Social trading: should I give up learning about trading?

While social trading services like HeartBeat help you to make your first steps on financial markets, they are not a panacea. You can treat it as a temporary measure on your way to success. Some skilled traders invest money this way to make a better diversification. Imagine, you have a good strategy and you buy various assets on your own. However, you have seen a managing trader whose results are even better. You can continue to buy and sell assets and invest a part of your funds in social trading. By doing this, you can rely on even better results.

On the other hand, this is a good way to diversify your risks. If your strategy fails at some point, the profits from your social trading network will cover your losses and vice versa. If the managing trader fails, you can cover their losses with your own profits.

Final words

Trading is not an easy way to earn money. You will have to learn many important things before you can get your first stable profits. Social trading is a good way to start your investment career without having enough skills in trading.