Millions of people get into trading every year but come away non the wiser and a whole lot poorer. They do not reach their full potential because they do not take time to master the skill needed to make it. If you take time to learn these tips, you will be able to tilt the odds in your favor.
World markets tend to attract many speculators who throw money at securities without taking time to understand the reasons why trends behave as they do. They instead let other people make bad decisions for them. Here are some of the steps you must master before joining a trading platform
Open A Trading Account
Opening an account seems like a rather obvious step, but it is a necessary step. Look around for a reputable online stock broker in Hong Kong, and open a brokerage account. If you have a personal account, never mind, it is still worthwhile to have a separate professional trading account. Ensure you familiarize yourself with the user interface . Use the research and free trading tools offered to clients on the trading platform.
Knowledge is power. Read extensively. Read website tutorials, stock market books, financial articles, and everything you can lay your hands on. Don’t focus on one trading platform or subject, but instead read everything concerning the Hong Kong stock market, and the international market as well. Some concepts and ideas may seem irrelevant at the moment but read them anyway. They will come in handy in the future.
Some examples of books you can read include:
- Winning on Wall Street by Martin Zweig
- Stock Market Wizards by Jack D. Schwager
- Technical Analysis of the Financial Markets by John Murphy
- Trading for a Living by Dr. Alexander Elder
- The Nature of Risk by Justin Mamus
Follow the market religiously any time you are free. Wake up early and look at the overnight action of prices on the foreign exchange. Sites such as Google Finance, CBS Moneywatch, and Yahoo Finance are excellent information resources for new traders. If you need more complex information, read the Bloomberg and The Wall Street Journal. You can also read the Asian Investor, Financial Times, etc
Learn How To Analyze
Have a critical look at technical analysis basics and study price charts. Read company spreadsheets as they will give you a much-needed trading edge. The experience you gain from technical analysis charts will help you to predict prices. The theory most people have is, securities can only go high or low, not realizing that rates can go many ways.
Practice virtual trading by using a simulator that mimics an actual stock exchange interface. Paper or virtual trading teaches you to know which buttons to press when you start trading with real money. Paper trading, aka virtual trading, does not encompass the real emotions behind actual trading. Greed and fear are two emotions that can never be engaged by virtual trading.
Emotions are the most significant reason most new traders get off the trading platform in the first year. You have to make peace with your feelings and address them before they push you out of the game.
Get An Education
Get an education, whether online or physical classes. The classes range from beginner to pro. Attend specialized seminars conducted by a skilled trader. Some of these seminars may be workshops where you practice taking positions. You can test your entry and exit plans, and many other exercises geared to making you more adept at trading on the trading platforms.
Pay for analysis and research will be very educational and beneficial. Some traders might prefer observing professionals on trading platforms than struggling to apply theoretical lessons. Get yourself a mentor who will guide you during every step in the trading sessions. You can pay for a mentor on the online trading schools.
You need to start your stock trade journey by reading extensively and going the extra mile. Nothing good comes easy. You have to work harder to have a cutting edge and to make sure you do not fall off the wagon in the first year. It will make a difference and determine if you succeed or fail.