Making your first trade is an exciting milestone – if you get it right of course! Where do you start and what do you need to know to make your first trade a successful one?
Financial Markets Online founders, James Bentley, Samuel Fuller and Rajan Naik are experienced traders who train students around the world. Today, they’re sharing 5 tips for making your first trade.
- Find a regulated broker – a regulated broker must operate in a way that complies with the regulations set forth by a Forex regulator. This ensures they maintain and secure decent, fair, and ethical behaviour. There’s far less risk for you as they’re also required to keep sufficient funds.
- Fund your account – open a cash account in which you pay the full amount for the stocks you buy. Whilst a margin account increases your purchasing power, allowing you to use someone else’s money and offering a potential higher profit, there are also greater risks and amplified losses, if your trade goes against you.
- Invest in professional education – there’s no substitute for learning from the professionals. They’ve got knowledge, experience and have often learned successful trading the hard way. Finding a good training programme, like the ones FMO run, needn’t be expensive and it will be money well spent in the long term. You’ll gain the benefit of unique strategies that you can use to apply to your everyday trading and be able to access live webinars and online support, showing you how to implement these strategies on a continual and regular basis.
- Have a mentor and create a trading plan – a good mentor will oversee your trading and be on hand to advise, encourage and most importantly, deter you. They can help you create a plan, your own set of rules and support you in staying disciplined enough to stick to them. This can be the difference between making money and losing it.
- Follow a proven strategy – hundreds of traders have come before you and you can follow their successes and avoid their failures by engaging a strategy that they have executed, time and time again