How to get into trading: If you’ve ever been involved in trading before, you’ll already know all about the levels of excitement that it can bring. Knowing that you’ve made a good call, and knowing that you’ve just made a huge profit, is a thrill that’s hard to match.
The only way to describe that feeling is to compare it to the one that you get when you win at gambling. When you head over to betadda.com, for instance, you can bet on a whole range of sports, and the thrill of winning never grows old.
If you’re new to trading though, you may wonder exactly what it involves, and how you can get started. That’s what we’re going to look at now.
What is trading?
Share trading is a process used by many to make money. It involves the buying and selling of company stock using derivative products. The aim is to watch the market and then react at the appropriate time. This is a short-term strategy and, when you get it right, it can be highly profitable.
You may have also come across share dealing. Also known as investing, this is different trading as it involves holding shares for the longer term in the hope that their values will increase.
Why should I start trading?
Well, the simple reason that people trade is that it allows them to make money. It allows you to take the money that you have and grow it. Its appeal is that you can generate more from your money in this way than you can through the likes of a savings account. The returns are also much quicker.
While investing relies purely on prices going up, trading is different. You can generate huge profits by successful gambling on a fall in value too. This is something that makes trading highly attractive.
So, how do I get started?
Let’s say that you want to trade on the UK stock market, there are several steps that you’d need to take. These are:
- Carry out research and pick the right stocks – You can’t just buy stocks on a hunch. You need to be reading the news and looking at the latest analysis. This will see you making the best decisions.
- Choose a product – You may opt to spread bet or you may opt for CFDs. This is an area that you’d need to read up on so that you make the right choice for yourself. It’s worth noting that, while they can bring some amazing profits, CFDs are risky, even for professionals.
- Choose the direction – With your research all done, you should now know which direction you’re trading in. Are you going long, and buying, or short, and selling? Your research should give an indication as to whether the price is likely to rise or fall.
- Open your position – Open a ticket order based on what you think will happen to the price. Make sure that you look into stop-loss options so that you can protect yourself from dramatic losses.
- Close your trade – Know the conditions when you should close. Hopefully, you’ll have profited, but either way, you need to evaluate your performance before you start again.
Check out https://portal.tradebrains.in/superstars/ for more SuperStar portfolios. Happy Investing!
