Trading and investing in the financial markets has never been so popular with the broader public, with an increasing appetite for short-term investing and day trading. The evolution of trading in the 21st century has been supported by the growth of social media, with the recent Reddit/GameStop Frenzy highlighting the power of social media to influence markets. In addition, user-friendly apps and trading platforms, alongside ease of entry and low costs, makes trading and investing in markets so much easier for the retail investor and trader.
The extra personal time during the COVID-19 pandemic that has come from the movement to work at home, plus the national and regional lockdowns, means greater flexibility around personal time. This has encouraged a strong growth in individuals trading and investing for themselves.
Furthermore, heightened financial market volatility from the coronavirus pandemic in 2020/21 and also around the US election has increased the opportunities in financial markets to make quick profits.
If you are a trading or investing newbie, the world of financial markets can be rather daunting. Here we will look at four steps you can take to try to ensure your journey into this new world is a successful one.
- Get an education
- Choose the right broker
- Psychology – know yourself
- Make a plan
- Get an education. Knowledge is key to most things you do in life if you want to be successful. You may have natural abilities but improving on these comes through comes through education. Personal research on financial markets and trading is key, and you can pick up some basics from the You Tube “gurus”. But a financial markets and trading course with a trustworthy educator would be a big boost to your chances of success. As with anything in life, success comes from dedicating time and effort to acquire knowledge through education. A successful trader and investor will acquire the skills needed and appreciates the significance of learning, dedicating time and energy to improving through education.
2. Choose the right broker. Choosing the right broker for you is a critical step to success trading and investing in the financial markets. There are multiple factors to contemplate in choosing a broker.
- How well they are regulated?
- Do they offer research and education?
- What are the fees involved?
- How good is their trading platform?
- Do they offer mobile trading apps?
These are critical questions to answer when choosing a broker. You can check out different brokers and their platforms by opening a demo account. You can find out more by checking out the best brokers reviews by fxexplained.
3. Psychology – know yourself. Any skilful trader will have a disciplined, strong mental attitude, they all agree that psychology is a significant aspect to trading and investing. This mental strength does take time to acquire but can be assisted by the use of books on the psychology of trading, such as Trading in the Zone by Mark Douglas.
4. Make a plan: If you are going to succeed at anything you should have a plan. is successful in the long run needs a plan. In order to succeed in the world of financial markets investing and trading, you will need a strategy. And this strategy will need to be developed, over time. Education will assist with building a successful trading or investing strategy. As will a strong mental attitude and an understanding of the psychology of trading. But a solid strategy that is stuck to and cultivated, can lead to success and profit with your trading and investing.
We trust we have helped you on your journey into the world of financial markets, investing and trading.