Are you tired of sitting on the sidelines and watching the markets set new highs and lows? Do you ever get the feeling that the time has come for you to begin taking an active role in the massive global securities markets? If you answered yes, then you’re like many others who are ready to learn the basics and get busy building a small trading and investment portfolio. The good news is that it’s not rocket science, so there’s no need to spend weeks and months learning how to get started. In fact, those who know nothing at all about the markets can open a brokerage account, fund it with a modest sum, and become active traders in less than a week. As you gain experience, you’ll learn how to follow price action of stocks, forex, commodities, and other assets.
That’s when things can really get interesting. Some like the give and take of daily trading action so much that they decide to make a part-time or full-time job out of it. But that decision comes later. For now, the goal is to find out how to set up an account and make those first few transactions. You don’t have to follow the exact order of the suggestions below, but logic dictates that the first two steps are finding a brokerage firm to work with and setting up an account. From there, you can choose your favorite markets, explore software, study techniques, and do research in whatever order you wish. Here are the steps.
Find an Excellent Broker
Choosing a broker is sort of like picking a college or deciding to buy a new car; it’s a critical step and has a long-term impact on your overall experience for the future. That’s why it’s worth spending time doing online research. Read reviews, check out several of the top brokerage firms’ websites, see how their customer service responds when you ask a question, etc. Make sure you only work with a company that is licensed, has been in business for several years and offers a wide array of trade-related services as well as top-notch customer support. See what each provider offers in the way of educational resources for new account holders. If you choose a reputable brokerage service, you are able to read informative articles, learn about trading platforms, sharpen your skills, and more.
Set Up and Fund Your Account
Follow the online instructions to legally open an account. You’ll be asked to fill out a couple of short forms that include verification of your identity, etc. Then, you might have to wait for a day or two before your account is approved. The next thing to do is put funds in so you can make transactions. Only add what you can afford. This is not the time to use rent money or savings.
Explore the Trading Software Choices
Check out the various software products available to you. Many of the top brokers offer platforms like MetaTrader 4, which is specifically designed for forex, and MetaTrader 5, which is a more general-use software. Try out whatever options appeal to you, and try to familiarize yourself with how each one operates and functions.
Learn a Few Basic Strategies and Techniques
Spend time in the educational section of the broker’s website and read about some of the most popular indicators, strategies, and tactics. Don’t forget to include moving averages, fundamental analysis, and momentum studies in your initial reading and research.
Choose a Market That Appeals to You
You might already have a particular segment or asset class in mind. Many newcomers prefer forex, stocks, cryptocurrency, or CFDs (contracts for difference). They’re all popular because there’s a short learning curve, and you can absorb a lot of knowledge by watching price action and reading a few articles about how each market operates. Avoid trying to do too many things at once. If you’re new, it’s wise to try and stick to one segment and learn as much as you can about it before moving on to another area.
Do Some Focused Research
Now is the time to hunker down and research the market segment you’ve chosen. If you opt to do forex trading, read up on how international currency exchange rates work, what factors cause one country’s currency to be stronger or weaker than another, and how to gather important pieces of information from financial news. If equities or cryptocurrency appeal to you, read about how to analyze corporate earnings reports and study price charts of assets like bitcoin and ethereum. Once you select a specialty, it’s much easier to hone in on specifics and learn a great deal in just a couple of
