The market is multifaceted and, as such, it can be accessed via a wide range of instruments ranging from Forex to Commodities and Indices to Stocks and more.
Naturally, many people may want access to the markets by trading or investing in them. Still, while the prospect of trading can certainly be intriguing and interesting, it is important to keep in mind a few basic things before you start your trading journey.
In this comprehensive guide, we cover the basics of trading for beginners, what it really is, and what you need to know in order to learn how to trade.
Introduction to Trading: What Is Trading?
First and foremost, to get a better understanding of how you can kickstart your trading journey, it is important to know what trading actually means.
In simple terms, trading is the act of buying or selling a certain asset with the intention of making a profit, hedging, or limiting losses. The asset can stem from different market sectors and the traders essentially speculate on its rising or falling in price. However, it is important to know that trading can be risky and can sometimes be accompanied by losses.
Selecting a Trading Platform
With a wide variety of trading platforms available, new traders may often feel a bit lost as to which one to choose. While there’s no black-or-white answer to this, here are a few steps you can take before deciding on a platform.
- Set Your Goals and Needs:
Knowing your goals and needs will help you pick the right platform more easily. For example, if you are interested in gaining exposure to various markets like Forex, Commodities, or Indices without having ownership of the underlying assets, then CFD trading may pique your interest. You may learn more about CFDs in our Trader’s Guide article and video on “What Is CFD Trading.”Experienced traders, for instance, are likely to favour platforms that offer advanced trading charts, while new traders may want a platform that is intuitive and easy to use.
Consequently, to cater to all traders, Plus500 offers both advanced trading charts and market analysis tools, and an intuitive platform with a straightforward interface.
- Find a Regulated Platform:
One of the most important things to keep in mind is that you should find a platform provider that is known, licensed, and regulated like Plus500, which is regulated and licensed by the CySEC, ASIC, MAS, FCA, FSA, EFSA, and DFSA.
This means that the platform provider needs to comply with various Laws and Regulations which focus mainly, amongst other things, on the clients' protection.Other important factors to consider are whether or not the platform has fraud protection, security, and account protection. In addition, you may also want to consider a platform that offers risk management tools like stop-loss orders to help you mitigate risks.
- Find a Platform with Transparent Fees and Commissions:
Choosing a platform that is upfront when it comes to the fees and commissions it charges is important to your overall potential success and gains.As such, finding a platform that offers no commissions, tight spreads, and transparent fees and charges may be helpful. You may also want to consider whether or not the platform offers a low minimum deposit.
- Opt For Ease of Use:
Find a platform that is intuitive and easy to use. This is important because the markets can already be challenging, and having a platform that creates a seamless experience can make the process easier.To find out if the platform in question is suitable for your needs and abilities, you can try trading with a demo trading account (if available).
Plus500 offers a free and unlimited demo account mode that allows you to practice trading in real-market conditions without having to invest your real money.
- Look For a Platform that Offers Educational Resources:
As novice traders, you may also want to look for a platform that offers educational resources to help guide you through.Plus500, for example, offers advanced trading charts and analytical tools and in addition, it provides free educational articles and how-to videos, amongst other things, to help guide traders. These free resources can be found in Plus500’s Trading Academy.
Additionally, Plus500 has a free news and market insights section which provides traders with news articles on the latest market updates to help keep them in the loop.
- Look For Available Customer Support:
Having available customer support is crucial to every trader, especially new ones, as this can help navigate you through challenging situations or any platform issues.Some platforms like Plus500 offer a 24/7 dedicated support team via Whatsapp, online chat, and even via Twitter and Facebook to help you address any questions or concerns.
Getting Started with Trading
After finding your platform, familiarizing yourself with it, and learning how the market works, you may be ready to actually start trading. Here are the basic steps to help you do this:
- Opening a Trading Account: This will require you to provide and verify your personal information, complete an assessment, and more, depending on the platform.
- Placing a Trade: After opening and authenticating the account, you may start trading. You first need to choose your preferred market instrument and then open a buy or sell position, depending on your needs and financial goals.
- Monitor and Track Your Investments and Trades: After opening a position, it is essential to keep track of it and how it's developing in order to see if you are achieving your goals or not.
In case you feel that Plus500 is suitable for you, you can learn how to use our Trading Platform through Plus500’s Trader’s Guide video on “How to Trade with Plus500.”
Conclusion
In conclusion, while trading may sound like a foreign concept to new potential traders, it is important to keep in mind that no one was born knowing how to trade. With the right platform, research, and trading strategies, even those who are interested in trading but never tried it can learn how to do it.
Most importantly, when it comes to mastering the art of trading, in addition to finding learning resources, researching, and finding a good platform, you need patience and a lot of practice, and you may also want to avoid emotional trading, herd mentality, or overtrading. You should also bear in mind the risks involved when trading, as losses can be incurred and the markets can be unpredictable.
In other words, you may want to find the middle ground that works for you. In order to learn more about basic and important trading concepts, feel free to check out Plus500’s Trader’s Guide videos and articles.
FAQs:
Where Can I Learn More About Trading?
You can learn more about trading in Plus500’s free Trading Academy, which offers educational resources like free FAQs, trading how-to videos and articles, and informative articles, among other things. You can go to Plus500.com to learn more.
Can I Practice Trading?
You can indeed practice trading using Plus500’s free and unlimited demo account. This means that you are able to practice trading in real-market conditions for free. You can do this until you feel comfortable enough to trade for real.
