Trading seems complicated. Those who have never done it, will quickly be impressed by all the graphs and numbers. It is therefore very wise to read in carefully before you start trading. Trading is a risky way to invest your money in. But one thing is for sure: with the right knowledge the returns of your investment can be very high in a short time.
Choose a broker
You can only start trading when you open a trading account. Most banks offer such an account. The costs of a trading account differs per bank. A bank where you trade, you call a broker. Nowadays there are more and more online brokers. They are often cheap and sometimes give a welcome bonus. It therefore pays to compare different brokers well beforehand.
Decide how you want to start trading
After you have opened a trading account, it is wise to think about what you want to trade. The possibilities are gigantic. Raw materials such as gold and oil, exchange rates, bonds and shares are just a few examples.
A lot of people who start trading make the same mistake: they trade in all kinds of different products. It is wise to first delve into one or two types of trades. Shares are relatively easy to understand and are very appealing to the imagination. Therefore most people start trading with buying and selling shares.
It is extremely important that you have the right knowledge. The fact that you are looking for information on this website is a good sign. You will also have to collect information about the products in which you are starting to trade. With the right basic knowledge in your pocket, you can easily start trading. Do you want to tackle it more seriously? Then it is not a bad idea to take a trading course.
Determine how much money you want to trade. It is not wise to use your entire savings account because trading involves risks. Buy shares if you think the price is going to rise and sell them with profit. Or ‘go short’ if you think the share is going to fall. Gradually you will begin to understand trading better. Do you prefer to practice first? With Plus500 you can practice with demo money.
*80.6% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.
Plus500UK Ltd is authorised and regulated by the Financial Conduct Authority (FRN 509909).
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