Trading - what it is and how to get training in trading for beginners from scratch + 7 main stages of online trading

Good afternoon, dear readers of the online magazine "Rich Pro"! Today we’ll talk about trading - what it is, what types it happens, why social trading is needed and where to get training in trading.

After studying this article, you will learn:

• What is traiding and what stages it consists of;
• What programs are used for online trading;
• What is social trading, how is it arranged, what platforms are used for it;
• What methods of learning online trading exist;

Also in the article you will find step-by-step instructions for training beginners, expert advice on how to succeed and answers to the most popular questions.

Submitted publication will be useful novice traders. It will also be useful to familiarize yourself with it with those who study finance. In any case, do not waste time, it is best to start reading right now.

Read about what trading is and how it happens, where and how to get training in trading for beginners - read in this article!

1. What is trading (trading) - the definition and meaning of the term

Trading is a relatively new way to make money. To understand its essence, you have to spend a lot of time and effort. Let's try to understand the features and nuances of trading.

To understand the definition of trading, it is important to know what is financial market. This is a structure that allows its members to buy and sell. securities (e.g. stocks and bonds), goods (valuable metals and agricultural raw materials) and other financial assets.

During the purchase and sale are created demand and sentence for each instrument, as well as its cost. At the same time, the price never stands still, it changes day and night. Such fluctuations become a real opportunity for earning.

Trading (English trading) is a way of earning money by trading in financial instruments (stocks, securities, currencies).

As with any trade for trading, the rule is relevant - buy cheaper, sell more expensive. To succeed, it is important to learn how to enter and exit the market on time (in other words, correctly determine the time for opening and closing deals).

The definition of "Trading" and its meaning

It is very rare to find a trader who uses analysis to determine when to open and close deals. Most players (especially for beginners) enter and exit the market based on intuition as well as emotions. The result is most often one - they lose their money. Professionals earn money on this.

From the above, another trading rule follows. - to earn enough money, it is important to completely get rid of emotions and intuition. You should try to understand, on the basis of what principles professional market players trade and use them in their work.

It is not necessary to equip a separate workplace for trading. Enough to have a computer or laptop (you can carry out transactions from a tablet or smartphone), as well as stable access to the Internet. If you have a suitable device, it remains to download a special trading terminal to it and start trading.

Of course, a beginner is unlikely to consult with professional traders. However, you can use the methods that they use in trade.

Traditionally, two types of analysis are distinguished in trading:

1. Fundamental analysis based on the study of the economy as a whole. In this case, special attention should be paid to the country or region whose instruments are traded.
2. Technical analysis uses for study not the economy as a whole, but graphs of changes in value. Any transaction made on the market affects the value of a financial instrument. It is historical price data that most clearly reflect the psychology of the crowd. There are many methods of technical analysis. The most popular are japanese candlesas well as various indicators.

Today, the bulk of traders work for stock marketas well as Forex trading. Most experts are inclined to believe that the second option is more popular.

Main forex advantage lies in high volatility, that is, volatility. With a competent approach, it is thanks to the constant jumps in currency prices that you can earn a lot.

What types of trading can happen (scalping, trading in the medium term, trading on long-term time frames, moment trading, fundamental trading, technical trading, swing trading)

2. What are the types of trading - 7 main types

There are a huge number of strategies that are used in trading. For trading on the stock market and Forex, they are the same. Below are the most popular types of trading.

View 1. Scalping

What is this type of trading?

Scalping represents a small profit from each price movement. In other words, the trader enters the market and when a small profit appears on the transaction, it immediately closes it.

Scalping works only at short time intervals (time frames) On the weekly chart, you won’t be able to make big profits. The trader has to catch every movement on five-minute, or even minute timeframes.

A trader who wants to profit from scalping must be prepared for high levels of stress. At the shortest time intervals, the price of a currency changes very intensively. At the same time, professional scalpers earn quite a lot of money.

Type 2. Medium-term trading

By the way, you can trade financial assets (currency, stocks, cryptocurrency) directly on the stock exchange. The main thing is to choose a reliable broker. One of the best is this brokerage company.

When trading on Forex, the medium-term period is considered to be time intervals equal to 1 an hour, 4 watch, days.

Experts recommend beginners begin trading with medium-term trading. On these timeframes, it is best to learn how to control emotions, open and close positions, and predict prices.

Take note! Some novice traders, seeking to maximize profits, prefer to trade on scalping strategies. Such a decision is erroneous. Scalping is unlikely to teach anything, but you can lose a lot of money on it.

Type 3. Trading on long-term time frames

A long-term period is understood to mean time frames lasting more than one day - a week, month. Most often, large market participants are engaged in such trading. These include owners of huge capital - central banks and investment funds.

It's important to know! Traders who use the trade technical analysisusually do not work for long periods. Forecasts over a week can only be made using fundamental analysis.

If you correctly understand economic processes, you can make huge profits by exposing capital to minimal risk.

View 4. Instant Trading

The definition of "moment trading" is rarely used. The fact is that such strategies involve trading at any time period.

At the same time, the trader analyzes the movement of quotes on various timeframes. If he sees a signal to open a transaction, he opens a position. Often such a trader works simultaneously at different time intervals.

View 5. Fundamental Trading

This type of trading is used when trading using fundamental analysis. Most often, the trader in this case works with medium-term time intervals.

Time frames of less than a week are used only when trading is carried out using news.

Type 6. Technical trading

Technical trading is trading on any timeframes using rules technical analysis.

Worth considering, that with this type of trading, not all time intervals are used - time intervals longer than a day are almost never used.

View 7. Swing Trading

This type of trading involves trading within a growing trend from the support level. In this case, the trader determines the trend, as well as support levels and resistance. It enters the market from support. In the event of a price increase, a buy position is opened, in case of a fall - a sell position.

There are a lot of different types of trading. We also wrote in detail about the types and strategies of Forex in the article by reference, we recommend that you also read it.

Therefore, anyone who wants to make money trading financial instruments can choose a strategy to their liking.

The main stages of online trading: searching for a broker, opening and replenishing an account, installing software for trading, analyzing and opening a trading position, fixing the result

3. How is Internet trading carried out - 7 stages of trading through the Internet

It is not easy for beginners to understand where to start trading. To facilitate this task, we describe main stages of trading via the Internet.

Stage 1. Search for a broker (dealing center)

Broker or dealing center represents a market participant who executes the orders of the trader.

Today in the financial market there are a huge number of companies that perform these functions. To choose among such a number of the best brokers, one should analyze their trading conditions, user reviews of dealing centers, and the quality of technical support.

For example, many successful traders work through this brokerage company.

Important take this stage as seriously as possible, since a lot of things work in the modern financial market scammers.

Therefore, we also offer to familiarize yourself with the rating of Forex brokers.

Stage 2. Opening an account and depositing funds into it

When a broker is selected, you can open trading account. After that, you will need to deposit money on him. The minimum replenishment amount depends on the conditions established by the broker.

Sometimes resellers require customers to go through verification by sending passport data. If you have confidence in the reliability of the broker, you should not be afraid of this.

Stage 3. Start opening positions

When all the conditions for opening an account are met and the money is transferred, the trader will automatically gain access to trade. After that, you can begin to analyze the market, open positions and generate income.

Stage 4. Installing programs for trading

To be able to open deals, the trader must install special trading terminals on the computer. Traditionally used for this purpose. MetaTrader.

Sometimes brokers, trying to get around competitors, advertise their software. Do not succumb to such tricks. If new developments were better, the whole world would not use MetaTrader.

Stage 5. Analysis of information on changes in quotes

Before you start trading, it is important to analyze the current market situation. You must choose which methods (fundamental or technical) will be used for this purpose. Sometimes they use a combination of them.

Only when the development of the market situation can be predicted can you go directly to trading.

Stage 6. Opening of trading positions

To open a trading position, you should perform several actions:

• Press the button in the terminal “New order”;
• Enter the required scope of operation, that is, the amount of currency that will participate in the transaction;
• Press button "buy" or "Sell".

6th stage - Opening a trading position in the terminal

All orders can be divided into 2 types:

1. Market order consists of the value prevailing in the market at the time of its opening;
2. Pending order opens at the moment when the price reaches a certain level in it.

There are several types of pending orders. All of them are described in the table below. It is useful for novice traders to carefully study them, so that later they can use them in their work.

Table of various types of pending orders and their brief description:

Stop orders are most often used when trading on the news. They allow the trader to verify the forecast made and only then open a position.

When a position is opened, a trader will be able to track profit or loss on it in the trading terminal.

Step 7. Fixing the result of the transaction

Any position remains open until the trader decides to exit the market and record the result. In this case, the transaction may be closed at a loss or profit.

However, the result is not always recorded by the trader. Sometimes they can close a position without his participation.

A transaction can be closed when one of 3 situations occurs:

1. Trader decides to close a position and captures the result of the transaction on their own.
2. When the price reaches the Stop Loss or Take Profit levels. The trader independently determines which lesion he can withstand or what profit enough for him. If the price drops to the level Stop Loss, a loss is recorded. If it grows to Take Profit, the order closes with a profit.
3. The broker closes the position himself, as the loss led to a lack of funds in the client's account. This case is called Stop Out. It arises when the trader was unable to calculate the optimal transaction volume. The broker independently sets the level at which all transactions will be closed. Most often, Stop Out occurs when losses are reached. 80% funds placed in the account.

Having studied the above steps, the trader will be able to gradually achieve success in stock trading.

4. Which broker to choose for trading - TOP-3 brokerage companies

A huge number of brokers work in the financial market. Sometimes it’s not easy to choose one of them.№1 considered "ForexClub".

Experts advise you to carefully look at the companies presented below. All these brokers have been operating in the market for many years, they have vast experience and a spotless reputation.

1) Opening Broker

This brokerage company allows you to engage in trading in the Russian, as well as in foreign stock markets. The analytical department of this company regularly releases useful reviews.

Specialists working with a broker regularly organize appearances on television, make good forecasts. Thanks to them, they can trade in the market even inexperienced traders.

Trading in the foreign exchange and stock markets have a large number of differences. It is difficult to advise which trade through the Otkritie broker to prefer. For each case should be considered advantages and limitations two types of trading.

In any case, you should not start trading until training is completed. Before you open the first deal, you should understand all the nuances of trading.

2) Alpari

Many consider Alpari the best broker in Russia. In this company, traders can go through free education. It provides lessons that allow you to gain in-depth knowledge on the various features of trading in the Forex market. Technical equipment in the dealing center is at a fairly high level.

Alpari mainly works with currencies. At the same time, among the stock exchange instruments, trading through this broker is possible only with metals and 2 types of futures.

3) BCS Broker

BCS offers its clients to work with instruments of both the foreign exchange and stock markets. This broker has been operating on the market for quite a long time, in terms of reliability it is not inferior to the previously described companies. However, only a basic course will be possible for free, you will have to pay for subsequent training.

There is an obvious advantage BCS Broker - more opportunities for trading. Here you can carry out operations not only in domestic but also in foreign markets.

Having studied the description of brokers compiled by professionals, you can easily choose a reliable partner.

Programs for online trading online - 3 main groups

5. What types of programs for online trading exist - 3 main groups

Many traders use only terminal and acquired knowledge. In principle, a trading terminal is quite enough, because it has a large number of various tools that can be used to analyze the market. In addition, the terminal is promptly received news data.

All this leads to the fact that the use of additional programs becomes optional. However, some trading strategies require additional collateral.

All these programs can be divided into 3 main groups. Consider the main features of each of them.

Group 1. Software for beginners

First of all, you can include in this group indicators and oscillatorsautomatically embedded in the trading terminal. They are quite easy to use and can be used even by beginners.

For example, ZigZag indicator helps to find extremes in current market trends. Other indicators and oscillators provide other useful information for trading.

This group also includes various advisers. They do not open positions for the trader, but simply advise when it is better to enter and exit the market.

Group 2. Programs for professionals

Professional Trading Software complex indicators. Often they are developed by traders in accordance with their own trading rules.

The construction of professional indicators is carried out using the MQL programming language.

Group 3. Software for automated trading

This group of programs can be described using the classification of a professional trader Alexander Elder. He recommends dividing such software into 2 subgroups:

1. Black boxes analyze quotes. After that, they open deals on their own or recommend to traders when to enter or exit the market. However, such programs do not explain the reasons for their actions. Black boxes are usually used by amateurs who want to earn money on trading, but do not want to learn the basics of analysis.
2. Gray boxes also independently carry out trade, but explain the reasons for their actions. If a novice trader analyzes the explanations given by the robot, he will quickly master the rules of trading. If the player does not try to understand the reasons for the program, there will be no difference from the black box.

Using various additional programs in trading is optional. However, with a competent approach, they can significantly increase profit.

Social trading (copy trading) - what is it and what is it for

6. What is social trading and copy trading - overview of concepts

First, let's figure out what constitutes social trading.

Social trading (social trading) is e-commerce in various financial markets using a social platform that allows traders to interact with each other.

Recently, the popularity of special social networks that allow traders to copy deals and strategies of professionals has been growing.

Europe and the United States already have A few dozens similar systems. At the same time, social trading in Russia is still in its infancy.

Special programs contain all the functions necessary for trading. With their help, traders can communicate with each other. Professionals talk about their transactions, investment plans. In this way, they pass on their experience to beginners, and also send trading signals. Beginning traders using such platforms receive trading signals and build up trading experience.

The main advantage social trading is copying transactions (copy trading). This opportunity allows you to get profit even for those who before this did not succeed. Before the advent of social trading, many newbies were not successful. Moreover, they are often very fast. "Leaked" your deposit.

The essence of copying deals lies in the fact that it allows inexperienced traders to choose a mentor and connect to their trading strategy. After that, absolutely all professional transactions will be transferred to the beginner's account.

Many consider social trading to be a passive earning method. However, professionals do not recommend blindly trusting experienced market players. Everyone can be mistaken - even those who used to show excellent results. Moreover, it is not uncommon for traders to transmit signals to succeed in the past by chance. As a result, the wrong choice of a mentor can lead to losses, loss of deposit partially or completely.

Despite a certain risk, social trading is useful for both parties:

1. A trader who transmits trading signals gets the opportunity to earn extra money. He gets a commission from each profitable operation of newcomers who connect to it.
2. On the other hand, a novice trader, with the right choice of a mentor, can make good money without wasting time training in trading.

6.1. Social Trading Scheme

The financial market offers several good platforms for social trading. The conditions they offer may vary significantly.

Some companies allow you to join them only after replenishing an account for a large amount, but do not deduct taxes from clients' profits.

Other platforms are tax agents and automatically transfer part of the profits to the budget, but have a license from the Central Bank.

In any case, the choice of a partner mainly depends on the preferences of the trader.

Regardless of which company the trader chooses for social trading, the work will include the following steps:

• registration within the framework of a social platform;
• studying the platform, mastering the basic principles of trading with its use;
• analysis of the rating of experienced traders, as well as their proposed trading strategies;
• replenishment of an account opened on the platform;
• connection to the selected trading strategy.

After connecting to a professional, a beginner will be able to track and repeat his transactions. If at the same time the balance of the account will gradually grow, then the choice is made correctly. If, in the process of copying deals, the newcomer realizes that there are more unprofitable operations than profitable ones, then the choice was made incorrectly and you should disconnect from such a strategy.

In fact, it is not necessary to connect to one strategy. It is much more efficient to create a specific portfolio from different traders. This will help to significantly diversify the risks, that is, reduce them. According to one strategy, profit can be observed, while according to another - loss. As a result, the probability of generating income increases.

In addition, it will be useful to work with the account settings. You should use the function of limiting losses and not too bully the amount of leverage.

Professionals advise Beginners of social trading check the selected combination of strategies on demo account. So you can see the effectiveness of the portfolio without risking real money.

Once again, social trading is beneficial to both parties:

• Professional players the market get the opportunity to receive high income by delivering signals to their customers. If the trader is successful, he will be able to attract more and more buyers. The higher the profit, the more customers will be able to get, which means that profit will grow.
• For subscribers Social trading is also a very effective tool. In addition to profits, they can gain additional knowledge. Beginners can chat with their signal provider at any time using blog post, personal correspondence, comments. Thus, the novice trader receives the necessary information about the bidding, as well as the planned actions.

6.2. TOP 3 best social trading platforms

On the Internet you can find a lot of platforms that provide the opportunity to earn through social trading. Among such a huge number, it is not easy for a beginner to choose the option that will satisfy his needs.

We made TOP 3 best social trading platforms. They fundamentally differ from each other by the principles of work.

1) Metaquotes - built-in service from Metatrader

Metatrader is one of the most popular platforms used for stock trading. Naturally, they could not ignore the growing popularity of copying deals.

The developers decided to embed a special service directly into the trading platform. So it appeared Metaquotes. It allows any user MT4 programs Receive signals and copy trades. It doesn’t matter which broker the trader has opened an account with.

The main feature of Metaquotes is a strict selection of signal providers. Before getting the opportunity to share their strategy with other users, the trader must for a long time show a positive result in his account.

2) CopyFX service - an offer from RoboForex

Only the broker's clients can use the presented trader in their work Roboforex. However, analyze the proposed trading strategies and calculate estimated profits using the trading history of various traders, Copyfx allows even before opening a trading account.

A convenient calculator is provided to help the investor. It is enough to set the amount and estimated time of investments to calculate the approximate income. Also, the calculator allows you to make calculations for various levels of aggressiveness of the trading strategy.

3) Independent platform for social trading - ZuluTrade

The presented service is not related to specific dealing centers or a trading platform. ZuluTrade acts as an intermediary between clients of various brokers. This approach has allowed us to create a wide network of users living in different countries and using the services of different brokers.

To join ZuluTrade, you only need to open a trading account in any dealing company and link it to an account in an independent platform. The service allows users to exchange signals not only on Forex instruments, but also when trading binary options.

6.3. Pros and Cons of Social Trading

Social trading, like any other financial service, has a number of the benefits and disadvantages. Before deciding to use it in trade, it is important to carefully study all the nuances. This is the only way to understand how effective this interaction will be.

Main plus social trading is provided by him opportunity to work in a team. Traders connected to the platform can use the most current data. With the help of social trading, you can not only increase profit, but also increase the level of financial education, increase experience and professionalism.

In addition, among the advantages of (+) social trading, the following can be distinguished:

1. the ability to use a special social network to generate income;
2. risk reduction when learning to trade;
3. additional income, both for experienced traders (due to the supply of signals), and for beginners (copying trades of pros);
4. the ability to diversify risks;
5. independent decision-making regarding trade;
6. the absence of the need to conduct analysis in the case of copying transactions allows you to save time;
7. ease of use;
8. the opportunity to get advice from professionals, discuss the advantages and disadvantages of the developed strategy;
9. contests, bonuses.

Despite such a number of advantages, there are a number of pitfalls, ignorance of which can lead to unpleasant consequences.

Among the minuses (-) of social trading are often called the following:

• non-observance by the supplier of risk management signals, as well as trading for good luck, can lead to losses for users connected to it;
• incorrect copying of transactions often leads to a minus;
• an error when choosing a trader whose signals are taken into account in trading also leads to losses.

Social trading is a unique system that can bring traders additional income. But do not forget that in the absence of a competent approach to its use, you can get quite serious losses.

The main ways of learning to trade (self-study, online training and class attendance)

7. Trading Training - 3 Ways to Learn for Beginners 📚

Training is one of the main stages that a beginner should go through before he becomes a successful trader. Traditionally distinguished 3 main ways to acquire knowledge.

Method number 1. Self-study of the basics of trade

Independent study of trading implies, first of all, reading related literature. However, first of all, you will have to master the basic terms. Only in this case will reading be easy and rewarding.

In self-study, the focus should be on the quality of the sources selected for reading.

Professionals recommend start independent learning with the book of an experienced trader Alexander Elder, which is called "How to play and win on the exchange".

Using the Internet in training, a beginner must carefully filter what he will read. Poor quality material will not only mislead a novice trader, but also lead to a waste of time.

It’s best to use publications from popular financial resources.High attendance obliges their managers and editors to closely monitor the quality of posted materials.

Read more about trading on the exchange in the article here.

Method number 2. Online Trading Learning

This option is the simplest, but quite effective. Most brokers offer beginners to use for training. webinars.

Some courses can be found in the entries on YouTube. The convenience of this method of training lies in the fact that the user is studying video materials in a calm familiar environment.

Webinars before recorded videos are undeniable advantage. It consists at opportunities online to ask the teacher a question on the topic of the lecture. Experts recommend starting training with this particular form of knowledge.

Method number 3. Full time attendance

This method of training is available only in large settlements. Full-time classes are held in the offices of brokerage companies, which are usually located in fairly large cities.

Most often, 2 options are available for such training:

1. group
2. individual sessions.

Moreover, the material is offered orally by professional traders. The main disadvantage full-time study is the inability to adjust the schedule to your needs. Such a minus can be overcome if you engage individually for a fee.

Regardless of which training method is chosen, the novice trader should make every effort to understand the basics of exchange trading.

Step-by-step instructions on how to complete trading training for beginners - 7 steps

8. How to get started trading training for beginners - step-by-step instructions for beginners in online trading

To become a professional trader, a beginner will have to undergo training. However, not everyone knows how to do this from scratch. The instructions below will help a novice trader figure out what steps to take to become a professional.

Step number 1. Choosing a learning method

The fact that it is better to prefer full-time training in trading, we have already said. To clarify - ideally, you should attend classes with the broker that is selected for trading.

Worth considering! Many teachers focus on those tools that are used in a particular dealing company. By the way, this is why a novice trader should decide in advance what he will trade with.

Do not forget that small newly created brokers rarely offer quality training. Therefore, it is worth first of all to pay attention to market leaders.

Step number 2. Mastering the market and the basic concepts of stock trading

Not all brokers talk about basic concepts in their classes. It is assumed that even novice traders must have basic financial terminology.

Important! At this stage, you should clarify whether the selected broker classes for complete "dummies". If not, you will have to first study the information about the basics of the market.

It’s not enough just to read the material or watch the video. It is important to create a clear understanding of the following concepts:

• trend
• spread
• swap
• leverage.

Besides, start trading does not make sense without mastering the definitions of orders. Any trader should clearly understand what is called market and pending orders. In addition, he must be able to distinguish between Stop orders and Limit.

Only after you get an idea of ​​the basic concepts of trading, you can proceed to the next step.

Step number 3. Studying a trading terminal

A beginner should be well versed in the terminal used for trading. To get comfortable in the new program, you have to bargain with demo accounts. It is important to study all the subtleties and settings.

The table below describes the basic skills that every trader should master.

Table of skills necessary for successful work using the trading terminal:

Beginners should not be afraid of a large number of terms. Over time, with sufficient effort, understanding will come and the picture will be holistic.

Step number 4. Learning the basics of risk management

An important step in teaching trading should be classes on risk reduction techniques.

It is important to gain a clear understanding on the following issues:

• what lot size is optimal for use with various deposit sizes;
• determination of market entry and exit points;
• the ability to distinguish a potentially profitable deal from a knowingly unprofitable one.

It will also be useful to find out if the broker with whom it was decided to cooperate, transaction insurance options.

Step number 5. Introduction to the basics of fundamental analysis

The fundamentals of fundamental analysis should be studied by each trader. It is important to know its principles and those who decided to use the rules of technical analysis in trade. It is enough to familiarize yourself with the news calendar at least once a week to avoid misunderstandings in the trade.

Do not forget that at the time of the next news release, the market may behave unpredictably and go against the rules of technical analysis.

It is also important to understand in which cases fundamental analysis is indispensable:

• when trading on the stock exchange;
• when deciding to conduct trading within a long-term period, one can not do without one technical analysis.

Step number 6. Learning Technical Analysis

Most traders, when making trading decisions, rely on the rules of technical analysis.

It is quite difficult to work solely on the basis of fundamental rules. For this it is important to see the entire market from the inside, clearly understand its essence. Such skills can be achieved by continuously learning and trading for many years.

Mastering technical analysis is much easier. Moreover, it is quite effective. With the help of building trends, determining reversal patterns and other technical tools, you can get good profit.

Step number 7. Opening a demo account and applying acquired knowledge in practice

Experts do not recommend beginners to start trading for real money without practical training on a demo account. The fact is that familiarization with the basics of analysis and the use of the trading platform are useful for trading, but insufficient.

Important! On a demo account without risking real moneyBeginners learn to control their emotions.

Often, traders face huge losses, as they are not able to control the fear of losing money and greed. Trading demo currency allows a beginner to cope with them.

The described steps can raise the novice trader to the top of exchange trading. But do not rush. It is important to gradually move from step to step, to constantly develop and increase knowledge and experience.

9. How to achieve success in online trading - TOP 5 tips from professionals

It is not easy for beginners to succeed in trading. Significantly facilitate the task of professional advice. Some of them may seem simple, but do not neglect them.

Are below expert adviceto help beginners succeed in trading.

Tip number 1. Establish tight discipline during trading

Discipline helps traders restrain emotions. Trading with a cold head helps to overcome the excitement, which in trading only harms.

Making a profit, beginners often stop because they are afraid of losing what they have earned.

At the same time, a loss can lead to the opposite effect - a trader, trying to recoup, doubles bets, makes hasty conclusions.

The result is usually one: New messages regularly appear on forums that the exchange is a scam and a bunch of scammers.

Too much emotionality most often leads to the fact that the trader ceases to correctly evaluate the market. As a result, he misses truly profitable opportunities and opens up knowingly unprofitable transactions.

It is important to learn how to control yourself. Any trader should treat invested money only as a tool for making a profit. He must be prepared for losses and act with a cold head.

Tip number 2. Any transaction should be conducted with an amount not exceeding the one you are willing to spend

You should never trade on borrowed funds. They will have to be returned even if the trader loses everything. As a result, you may find yourself in a deplorable financial condition.

If your own funds are insufficient, you can use the opportunities provided PAMM accounts. In this case, the trader trades funds invested in it by investors. At the same time, the agreement clearly states that in case of loss of money received during trading, the speculator is not obliged to return them. We wrote more about PAMM accounts in a separate publication.

Tip number 3. It is important to limit possible losses within one transaction

Within one transaction, you should not risk the amount that more 2% funds in the account. In this case, the deposit will be able to withstand a fairly large number of loss-making transactions. In an effort to earn more, you can not increase the risk, it is better to increase the amount of money in the trading account.

Every trader should know what Warren Buffett and at all advises not to risk the amount in each transaction more 0,1% from nested. It is worth considering, because he managed to become one of the best players in the market.

Those who have not yet learned to calculate the possible loss, do not know the basic concepts of trading, do not start trading at all. Losing money on ignorance is very simple. Therefore, it is better not to rush, spend time on training and hone skills on a demo account.

Tip number 4. Continually learn your own experiences.

Experts advise to print fragments of charts during the bidding, mark open deals on them, as well as levels of loss limitation and profit.

It’s important to clearly answer your own questions why was this or that action taken and whether the decision was correct.

Tip number 5. Be patient

Many newcomers pay a lot of money for trading classes in the hope that a few hours of training will turn them into professionals. They forget that trading - it’s a skill that will take a lot of time to master.

In addition to theoretical knowledge, years of practice are required, during which professional players develop their own strategy and gradually improve it.

The tips above will help you succeed in trading. Enough to make an effort for this.

10. TOP 3 trading books for beginners in stock trading 📖

It is not easy for a novice trader to pick up really useful literature. There are many books on stock trading. Some of them are more substantial, others less. You need to read constantly, but for training to be really effective, we recommend starting with the books below.

Book 1. Alexander Elder "Trading with Dr. Elder. The Encyclopedia of the Exchange Game"

Absolutely all the books of the famous trader Alexander Elder are useful for studying not only for beginners, but also for successful traders.

The presented book is simply the bible of any trader. After studying it, you can come to understand the psychology of trading, as well as the basics of money management.

The encyclopedia will not only answer the most popular questions among beginner speculators, it will teach you how to control risks during trading.

Book 2. Victor Ilyin and Valery Titov "Exchange at your fingertips"

After reading this book, a beginner will be able to understand what is the stock market what is its structure. He will also get acquainted with the mechanisms and principles of the exchange.

The work presented also contains useful information on how the stock market developed what are the main features and nuances of trading.

After reading, the novice trader will learn to increase his capital using trading on the exchange.

Book 3. John J. Murphy "Technical Analysis of Financial Markets"

Many professional traders call the presented book the best among those devoted to technical analysis.

Technical analysis has always been one of the most difficult topics to understand. But murphy managed to tell it is easy to understand about it. All examples are accompanied by illustrations and sufficiently detailed explanations.

In this book you can find information about the main tools of technical analysis, as well as strategies and tactics used in stock trading.

Of course, the presented list of books is far from complete. To become a successful trader, you will have to study dozens of equally useful publications.

11. Answers to frequently asked questions (FAQ)

During familiarization with trading, beginners have a huge number of questions. We traditionally simplify the task for our readers and provide answers to the most popular of them.

Question 1. What is cryptocurrency trading and how does it differ from trading in the foreign exchange and stock markets?

So what is cryptocurrency?

Cryptocurrency represents electronic money, the issue and circulation of which is usually decentralized.

In contrast, monetary units issued by various world states, professionals call fiat.

Fiat money - the currency that the state has declared as legal tender. However, it has no independent value and is not tied to gold.

Cryptocurrencies are traded on exchanges, which can be divided into 2 main groups:

1. exchanges for exchanging cryptocurrencies for fiat money and vice versa;
2. Exchanges for trading exclusively cryptocurrencies.

Cryptocurrency trading is practically no different from fiat money trading. The main task of the trader is preserved. He seeks to purchase a monetary unit cheaper and sell more expensive to make a profit. Market participants are also preserved - they can be conditionally divided into investors and speculators.

The cryptocurrency market uses the tools that came here from the stock exchanges and Forex. That’s why those who have already successfully traded in traditional financial categories, mastering cryptocurrency trading will not be difficult.

To succeed, it is important to understand the value of basic tools and be able to use them.

Cryptocurrency trading tools primarily include:

1. Graphs reflect information on the value of cryptocurrencies in relation to each other or to fiat currency units;
2. Trading Orders form a glass that is similar to those used in the stock market. The cryptocurrency market uses 2 types of orders. Aggressive or moment are executed at the current rate. Passive orders similar to pending orders in traditional trading - they are executed when the rate reaches a certain value;
3. Operations history represents information on trading volumes for a particular pair.It is it that allows you to evaluate how actively traders use a particular currency pair in trading.

Despite the huge similarities, the cryptocurrency exchange is different from currency and stock. The main difference is at much higher volatility. It is understood as a change in the exchange rate of trading instruments for a short time period.

For example, cryptocurrency rate may change during the year more than 50 times. For an electronic currency, this is quite normal.

Such high volatility leads to the fact that on the one hand in a few days you can increase the amount of funds in the trading account tenfold. But on the other hand, such potential returns entail enormous risks of loss of funds.

Another difference of the cryptocurrency exchange is low efficiency of technical analysis. It is also associated with a high degree of volatility. The exchange in question is little affected by market events. Basically, the course changes under the influence of several groups of large market participants.

In cryptocurrency trading, the greatest efficiency is shown news strategies. However, it is not always easy to find information on the necessary cryptocurrency. The most complete news is presented on thematic forums and blogs. However, they do not always reflect the real situation on the market.

Question 2. What trading is called scalping and how does it differ from other trading strategies?

Scalping (from the English scalping) is an intraday trading strategy, in which a trader "catches" the minimum jumps in quotes on time frames lasting 1 and 5 minutes.

However, in order to get a sufficiently large profit, you will have to open positions with sufficiently large volumes. This increases the risk of loss.

A distinctive feature of scalping is that the trader must be constantly on the alert. Working with time intervals not exceeding five minutes, you can encounter constant price spikes within a few points. At the same time, it is difficult to remain calm when the price has gone in the wrong direction (especially if the volume of the transaction is large enough).

Scalping technical analysis pretty hard. Do not work in this strategy candles and trends, which show good results when trading for longer periods.

Scalpers are advised to use a variety of indicators.

Question 3. What is a spread in trading and what types does it happen?

It is important to understand that on the exchange the price of each trading instrument is presented in the form of quotes. In this case, the course is reflected in two prices:

• BID - price for the purchase by the exchange of the instrument;
• ASK - selling price.

Spread is the difference between the purchase price (BID) and selling price (ASK) financial instrument. Moreover, in market conditions, the proposed BID price is always lower than ASK.

Traditionally, there are 3 main types of spreads:

1. Fixed. In this case, the size of the spread remains the same; it does not change under the influence of market conditions. Such a spread is usually used by brokers for automated trading accounts.
2. Floating or variable - the spread varies depending on market conditions. Most often, with passivity of course fluctuations, it can be set at about 1-2 points. If the value of the instrument begins to fluctuate sharply, the spread increases and can reach 50 points.
3. Fixed with extension - This spread is a combination of the two described above. It involves fixing one of its parts, provided that the broker changes under the influence of market conditions another part of it.

Good to know! With a floating spread, you can use an interesting strategy for trading. With a minimum spread, open at the same time. 2 deals of equal volume - to purchase and for sale. When the spread grows to the maximum, the profit will be equal to its value. This strategy is low risk and high effectiveness.

Question 4. What is a swap in trading and what types of swap are there?

Swap in trading - this is the commission that is paid to the broker for the fact that he transfers the open position on the next trading day. Otherwise they call him rollover or overnightthat reflects the essence of the swap.

When trading currencies, there are 2 types of swaps:

1. long charged for purchase transactions;
2. short paid in the presence of open sales transactions.

Swap is not always a negative value. It can also be positive, increasing the account balance.

To understand where a swap comes from, it is important to know one rule of the Forex market. When trading currency the next day, the seller must supply real monetary units. Naturally, speculators who work on Forex, as a rule, do not need a real currency. They need to leave their deals open for which they pay a small commission.

Question 5. What should be considered by beginners when learning to trade?

Today you can find a huge number of educational programs offering training in trading. Not all of them can be called quite effective. In order to choose really high-quality lessons, it is important to check them against the criteria below.

Criterion 1 The number of lessons should be determined by the level of initial knowledge

The knowledge given in the classroom must be fully assimilated. If in the process of training a trader feels overloaded, it is worth pausing.

Therefore, the number of classes should not exceed 2-3 times a week, to have time to "digest" the information.

Theory must alternate with practice. If the broker offers paid tuition, the trader has every right to demand that the quality of classes be at their best.

Criterion 2 Classes should include only useful information.

During the lesson, the teacher should "pour water" as little as possible, distracting from the topic. The number of advertising deviations should also be minimal.

Trader must rememberthat all the information that he does not understand, the brain will erase as unnecessary. Therefore, in the learning process, it is important to ask questions, trying to fully perceive all the information taught.

Criterion 3. Training should be individual or in small groups.

Paid training should ideally be individual. If group classes, the number of visitors should not exceed 3-4 person. Only in this case you can completely relax, ask a maximum of questions to the teacher.

Despite the principle described, it will be useful for beginners to visit the so-called club days. At such lectures, experienced traders speak to a large audience, talking about the principles they use in trading.

Criterion 4. Learning material must be balanced

You can not trust the activities that consist only of theory or practice. Practice without theoretical knowledge will not bring any result. At the same time, information is hardly assimilated qualitatively without its use in trade.

Quality training necessarily accompanied by a large number of examples based on real quotes, as well as news. An important part of the material taught should be risk management.

We also recommend reading material about learning Forex for beginners.

Question 6. How to use scalping and what are the risks?

Despite the apparent simplicity, scalping does not always bring success. It is especially difficult to master for novice traders.

Experts do not recommend move to scalping until you can achieve a stable profit in medium-term trading. To succeed, it is important to learn how to feel the market, trade with a cold head.

For those who decide to master scalping, professionals give a number of tips.

Tip 1. It is important to develop a trading plan and in no case deviate from it.

Scalping requires a trader to complete discipline. If you deviate from the trading plan in the pursuit of profit, the drain of the deposit is almost guaranteed.

An example of using the Scalping strategy in trading

Tip 2. Before you start trading for real money, the strategy should be checked on a DEMO account

Professionals recommend checking the strategy during periods of stagnation and, if necessary, refine it.

Tip 3. It is important to learn how to use Trailing Stop and actively use it

There are situations when the developed strategy signals the need to close a profitable deal. In this case, it makes sense to use Trailing Stop. It operates on the Stop Loss principle, but in a profitable zone. If the rate continues to move in the direction of the transaction, the stop level should also be moved in this direction. This approach allows you to increase profits.

Tip 4. Close positions on time

In the process of scalping, profitable opportunities for saving transactions almost never arise. Very rarely, traders transfer positions the next day.

Experts recommend Do not leave deals for the weekend, as on Monday the market may open against the trader. Do not leave open and unprofitable positions in the hope of a market reversal. Most often, this approach threatens to drain the deposit.

Stop Loss it should be installed immediately upon entering the market in accordance with the trading strategy; you cannot change it during the trading process.

Tip 5. In the trading process, it is important to correctly combine technical and fundamental analysis

Often, the release of news violates the principles of technical analysis. This is especially true of stock exchanges. However, in the trading process it is advisable to keep track of important news.

Following these tips can improve scalping. However, in the process of trading, one should not forget about the existence of risks that are inherent in trading in small time periods.

Scalping risks include:

1. Too high emotional stress.Scalping involves trading on timeframes in 1 or 5 minutes. At such time periods, quotes make jumps continuously. The trader has to constantly be in suspense;
2. Trading costs are set too high. Scalpers catch the minimum price movement. Therefore, the profit on each transaction is usually small. Stop Losses that protect the deposit from draining are set at a higher level. As a result, one losing trade often crosses out the trading result of the entire working day;
3. Predictions on minute and 5-minute time frames rarely show sufficient efficiency.

Question 7. What are the advantages of online trading?

Before the development of the Internet, exchange trading took place as part of a special exchange premises. Today, voice trading is used much less frequently. At the same time, online trading (online trading in financial assets) is becoming increasingly popular compared to exchange trading on the trading floor.

We highlight the advantages of online trading:

1. High speed of opening a position. When trading on the trading floor, a deal is not as fast as through the Internet. During the time required to open or close a position, the price of the instrument can change significantly. The high speed of transactions provided during online trading is especially important if trading is carried out on small time frames (for example, when scalping);
2. Online trading does not require a large investment. To enter the market, it is enough to make an order 100 dollars. Some brokers even allow you to enter the trade by investing about 10 dollars;
3. The possibility of round-the-clock trading. The MT4 program provides traders with round-the-clock access to news, analytics and training. On Forex, you can make a deal around the clock with the exception of saturday sunday and of holidays. In contrast, the stock exchange allows you to trade only during the session.

Question 8. Where can I get training in trading from scratch for free?

It is best to learn from reliable brokers, who over the years have won the trust of traders. Below are presented 3 companiesyou can trust.

1) Finam

Finam is a fairly large broker. In trade, you can use a huge number of various tools: currencies, Russian and foreign stocks, futures, raw materials.

There are a sufficient number of high-quality trading courses. But it should be borne in mind that deep knowledge here can be obtained only for money.

For experienced traders who operate in large amounts, this company is ideal.

2) Alpari

Alpari operates in the Russian financial market from 1998 of the year. Free tutorials are widely represented here. Both beginners and experienced traders will find a lot of useful information in them.

For those who decided to join the exchange trading from scratch, Alpari offers to go basic course. It is taught by several authors. Ideally, it is worth listening to everyone, since the content of the classes is different for them.

After mastering the basics, you can begin to study different types of analysis. The broker offers classes for its various types.

In many cities, Alpari broker's offices are open. They offer to get face-to-face consultation absolutely free.

3) Alor Broker

The specialty of Alor Broker is stock market trading. This company has an impeccable reputation; the broker's terms of trade do not cause any complaints.

The Forex market today is advertised more actively. However potential profit on the stock exchange significantly above.

Alor Broker offers courses that will be useful not only for beginners, but also for professionals. Here is a wide range of courses, among which everyone will be able to choose the best option.

Question 9. What is the psychology of trading and what factors influence it?

When trading any financial instruments, the psychology of trading is of great importance. So what is she like?

Trading Psychology - This is a reflection of the emotions of market participants on the quote chart.

Everything absolutely matters: fear, hope, euphoria. All these emotions can both inflate the price of a financial instrument, and lead to its collapse.

To learn how to profit from any position in the market, the trader must correctly determine the mood of the players. The psychology of trading helps him in this.

Important to understand that this phenomenon can be analyzed. It is thanks to the psychology of trading that appear on the chart repeating shapes. Any experienced trader will be able to benefit from the psychological mood of the market.

Beginners very often trade on emotions. They enter the market when the emotional background is already going off scale. The result is usually one - a good moment is missed, the market is turning in the opposite direction. As a result, the loss is growing⇑. This continues until the fear of draining the deposit presses so hard that the trader decides to close the deal.

Success cannot be achieved by someone who does not learn to calmly accept small losses. To avoid psychological pressure, any trader should firmly follow the intended trading plan.

To wrap up the psychology of the crowd for their own good, you need to learn how to capture the prevailing mood in the market. It can help technical analysis. In this case, it is important to learn to determine not the figures themselves, but what is behind them. However, before learning to capture the mood of the market, it is important to develop strict discipline.

12. Conclusion + video on the topic

Trading becoming an increasingly popular way to make money. However, not many newcomers understand that he needs to study long and carefully.That is why on the Internet a huge number of articles are devoted to the fact that the exchange is a hoax. In fact, you can earn money here, but it is much more difficult than scammers say.

In conclusion, we recommend watching a video about what traiding is (term overview, steps + books for training):

We hope that this publication will help you achieve success in trading. We wish you a stable profit and development of effective strategies.

If you still have questions about the topic of trading, then ask them in the comments below. We will also be grateful if you rate this material and share it on social networks.

Watch the video: Stock Market Training. How To Trade Stocks Online For Beginners (December 2024).