Before you venture into something new like trading, you should know that this is a lot different from investing. Trading requires more effort and time than investing in stocks. It’s not something you do when you’re investing in blue-chip stocks and leaving it for 5 or more years. Trading is more like a day to day activity wherein your knowledge about the companies you buy and sell is the most important factor to determine if you are making the best decision for your money or not. For first time traders, there are a couple of things you should know before you can join the game. If you are prepared financially and mentally, it’s better to learn and gather enough information first before you trade. For those who are asking tips for newbies in trading, here’s what you need to know.
Catch me in my live training events! (quick plug)
The heart of why I do these seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more about how you could time the market check out the trainings below.
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
Before you trade, make sure you have enough knowledge for trade starters. I’m not saying that you need to master all the trade information already because you cannot do this without enough experience. It is important that you study the basics first and build a strong foundation of your knowledge as a trader. Keep in mind that trading is different from just investing but you can use what you know about investing to nurture your attitude as an investor.
By setting aside the risk, you are giving yourself a percentage of what you can accept as a loss. Before you trade, you should learn to accept that there will be risks every time you trade. You should be able to decide what percentage of your account you are willing to lose. Say, for instance, successful traders risk less than 1-2% of their account each time they trade. This is just a preparation for you since losses may or may not happen.
If you’re just starting to trade, I advise that you start small. Don’t be too greedy and risk all the money you have if you are not confident of what you’re doing. If you are eager to experience trading and investing at the same time, I recommend that you start small. You can gradually increase your account as you learn how to trade. Trade what you can lose and never do something that you haven’t learned yet.
Keep your emotions down and stay calm. Don’t let your emotions affect your trading decisions as this may lead to poor choices. As a stock trader and investor, you must learn how to manage and control your feelings towards your money. If you do this, you will know what to do when the market is down and when it is up. You will know how to react to the volatility of the market. Trading is not all about emotions, always remember to play it cool.