If You Are New To Trading Read This!
This is aimed at those of you that haven’t traded before and are about to embark on their journey into trading.
It is the most exciting journey I ever started, even nearly 12 years on I still get excited looking at the markets and the world of opportunity there is. However, I need to highlight a few points.
The first thing I want to emphasise (and I do whenever I get the chance) is always make sure you learn whilst practising on a simulated trading environment i.e you are not risking real money in the market. This is essential, I have not only worked as a professional trader for years but I have also trained professional traders for years and I have never met one person that just picked it up in a day or a couple of weeks. It is a skill like anything else that is highly rewarding. It takes time. There is absolutely no reason for you to start trading with real money until you are able to turn a profit on a simulator first. It’s completely illogical to think otherwise.
I would also add to this, the simulated trading environment should show the real underlying market, it is just your orders don’t actually leave your computer. I think Ninja trader have one version of a simulated market where it is just random price moves. This is no good. Make sure you upgrade to their simulation of the real market. You sometimes have to pay data fees to access this info, but it is only usually about $20-30 a month. Well worth it.
The next point for new traders to consider is entering the trading world is a real business decision. It isn’t a bit of fun on the side (although it is very fun). It needs to be treated with respect, which means, if you only can afford to invest $100 into an account and have no sort of training or guidance then it is really going to take something unbelievable for you to achieve success. This is like opening up your own business from home. I know traders that generate 6 figure incomes a month with no more technology or knowledge that you can find for yourself IF you are prepared to invest both time and money into this.
It doesn’t take a lot of money to get started, not by a long shot. But if you are in a position of financial hardship and can’t afford to lose anything at all then please wait for a time in your life when you can afford to speculate to accumulate.
If you think you like the sound of trading because it is fun and a bit of gamble and fancy having a punt. Then again, trading isn’t for you. You are going up against the sharpest minds in the world, earning some of the biggest salaries in the world. Approaching it as a bit of fun will only end in losses.
But having said this, trading IS fun. What could be more fun than working for yourself, going toe to toe with people all over the world and outwitting them and earning great money in the process? But you just have to be aware that it is a serious pursuit and if you aren’t willing to treat it with that level of respect it is best you look elsewhere.