Gain experience in trading
Before you start trading with larger amounts, it’s recommended that you first get a lot of experience with trading. Luckily, there are numerous exchange simulators that allow you to practise with ‘play money’. In this article, we discuss where you can gain more experience trading.
The best way to get more experience
One of the best trading software that you can use to learn how to trade is that of eToro. With this simple software program, you can easily trade stocks, commodities and Forex. The beauty of the software is that once you have built up your confidence you can start trading real money right away!
You can gain more experience with the eToro software. Click here to open an account. After you’ve installed the program and have made your account, you can try out trading with 100,000 dollars in play money. The fun thing about the software is that it lets you practise trading for free, so you only have to deposit money when you are 100% ready to start gaining experience in trading.
Never traded before?
If you’ve never traded before, all of this can be pretty overwhelming. You can choose from hundreds of stocks, commodities and index funds that have fluctuating prices that change daily. In the beginning it’s best to focus on just a few instruments, such as trading EUR/USD or AUD/USD and a few familiar stocks.
By starting this way you will learn to spot the patterns of the different markets. The technical analyses will help you determine the chances that a price will increase or decrease for every market. You learn to understand technical analyses through trial and error. In our course on technical analysis we teach you all about the niftiest indicators.
Keep your head cool!
Trading can be a thrilling experience, but it’s essential that you keep your head cool. Many people make the mistake of trading with large amounts right away, or they put all of their money into one stock. This isn’t recommended at all. It’s a lot better to experience what it feels like to trade with real money and only put a few pounds down in each position.
You won’t gain a lot of money from your trades this way, but you will learn how to trade. This experience will help you in the long term, and it will only benefit your overall profits.
Trading isn’t a sprint; it’s more of a marathon.
We have found from our experience that you should limit your risks as much as possible. Only invest one or two percent of your entire holdings in one position to make sure you don’t lose all of your money on one position. By slowly building your capital, you’ll see that every trade you make will become more profitable.
Do you think trading is for you? Then practise, practise, practise! Many people spend hours reading articles or staring at charts without actually making any decisions. You must jump in and just go for it. Open a demo here >>