It is always tricky for beginners to start investing online and for this season we have done a guide in this article to help them make the first steps in the world of the online trading. It is a bit like riding a bike where trial and error linked with the consistency of continuing to press forth will eventually bring success. TopTradingPlatforms.co.uk experts have helped up in highlighting the ‘online trade road to success’:
1. Open an online trading account
The first thing you need to do is to open an online broker trading account. It is essential that you select carefully the partner you want to go with as there are many out there and each of them have slightly different features. You will need to spend some time with a demo account to familiarise with the layout and also take advantage of the free trading tools and research material that they are offering to clients.
2. Read financial books
Read a good book will provide you with a wealth of information and they are inexpensive compared to the cost of going to classes, seminars, online courses and so on. One of the best books is How to make money in Stocks by William O’Neil, but there are so many out there so you will have a wide range of choice.
3. Read articles
Similarly to books also articles are a great way to get educated on trading. Many websites regularly produce great content, and the majority is entirely free, so it will not impact your bottom line.
4. Find a mentor
A mentor is crucial as it will be able to answer questions, provide help and also support you when things do not go in the direction you would have hoped. All the best investors have had mentors at the beginning of their career.
5. Study the greats
Learning tricks from the most significant investors is a top way to improve your skills. All of us can learn great things from the likes of Warren Buffett, Jesse Livermore, George Soros, Benjamin Graham, Peter Lynch, John Templeton and Paul Tudor Jones, among others.
6. Read and follow the market
Nowadays it is straightforward to stay updated on what is happening in the markets. Visit sites like Yahoo Finance or Google Finance as you will find lots of resources for beginners traders. If you are looking for in-depth coverage, then consider signing up to the Wall Street Journal and Bloomberg. By having the necessary tools to monitor the markets every day you will start to note patterns and trends that will allow you to make better trading decisions.
Watching TV is also a perfect way to keep updated: channels like CNBC will present news in a digestible way and also have commentators, interviews and discussions to analyse more in-depth the markets.
7. Consider paid subscriptions
Sometimes paying for qualitative research and analysis is the right decision as it can fast-forward your learning phase. There are lots of paid subscription sites on the web, but the tricky part is to find the good ones for you so get some advice from reputable sources before committing to anything.
8. Go to seminars, take classes
Seminars are vital as they can give you a perspective on the overall market and also guide you in specific investment types. Not all seminars are expensive, and some are even free. Just stay away from the sales pitch at the end, and you will be fine!
Classes tend to be quite expensive, but the right ones will pay back so consider doing some especially at the start of your trading career. Stay away from those classes that give out false promises as they are probably going to be a waste of money.
9. Practice trading through a simulator
Nowadays you can practice trading without risking any of your money. All the major online brokers offer free of charge demos, so you don’t have to burn your cash to know if a strategy has legs. One of the most dangerous mistakes beginners traders makes to go all in and lose their bankroll immediately. Remember you are for the long run and you can only be successful if you have patience and consistency.