However, we have never explained what a novice trader usually needs, as well as the answer to the basic question, ‘why should I trade?’.
Read to the end of this article and you will get an “enlightenment” why trading is a special activity.
Why Should I Trade?
Well, in this world what are called ‘musts’ should be things that include basic needs like eating, drinking, and sleeping.
Trading is not a primary need, but those of you who live socially must have heard more or less how important investing these days is.
Therefore, trading slowly escalated into a necessity for some. For most people, the beginning is desire, and that’s natural. Humans are always trying to change their lives for the better and trading is an effective way.
Then why choose trading for a better life?
For the following reasons:
- Trading can be done by anyone with a variety of backgrounds. The important thing is that you try to learn.
- Can be done anytime and anywhere alias flexible. Very few activities contain this variable, especially for profitable activities such as trading.
- The cost is low. Maybe out there you’ve heard that trading is an activity with large capital. Absolutely not. You can use leverage which can help you start trading with small capital.
- Everyone has the same opportunities. You are not competing with other people or institutions for opportunities. This is not like selling goods or services.
- The potential is unlimited, but you can set a risk limit. The Forex market is open 24 hours in 5 days which you can use to reap profits according to the amount of risk you can bear.
In particular, for Forex trading, this market is quite challenging, especially for novice traders who cannot escape various mistakes. That’s why Finex is ready to help you – one of them is through this article. Challenging efforts will certainly provide commensurate rewards.
On the other hand, you need to remember that the foreign exchange market is the largest and most liquid market in the world. Forex trading, which can be done easily using a mobile phone or computer, is also suitable for various personalities and lifestyles.
Start Learning Trading
Just like anything in this world, learning something – whatever it may be – brings us benefits, big or small.
Trading gives you a great benefit, namely money.
Yes, learning to trade can be read as learning to make money.
However, Finex wants to emphasize that the money we are talking about is money for the future. Today we may already have money for our daily needs, but what about the future?
This is where the role of investment, or trading that we talked about earlier.
It is about your future, old age, which will give you comfort when your energy is not as strong or as great as your youth.
The sooner you start trading, the more and bigger the investment potential you will achieve.
Learning to trade means learning about finance – how to manage finance (eg how much to spend and how much to save). Asides of that, trading teaches us about taking risks. Because no success comes without also facing the risks – that we have to accept it and adapt it to our abilities. This can be interpreted as self-control. One of the characteristics of adults who are ready to succeed is being able to control themselves.
So be mature and achieve prosperity for the future.
What Beginner Traders Should Know
A good learning method is a structured method. There are initial steps and further steps that must be taken.
Basically, those of you who want to start trading for the first time are required to take the following initial steps:
- Identify trading instruments
The world of trading provides many options, including stocks, indices, commodities (gold, crude oil, etc.), and currencies a known Forex like EUR/USD, GBP/USD, AUD/USD, USD/JPY, USD/CAD.
- Understand trading terms
Leverage, Margin, Pip, Take Profit, Stop Loss, Open Order, Pending Order, Chart/Graph, Indicator, and many more terms that you should not miss when you learn all about trading.
- Find an instrument that suits you
There are types of people who like gold, but there are those who feel comfortable with Forex trading. Each of us has our own preferences. Your needs are not the same as your friends or relatives. Understand your goals and adjust to your abilities.
- Prepare capital and look for broker who will help you develop your capital
The funds you use to invest should be funds that are used only for investment.
That’s about it. Also check out our other articles on tips for novice traders.