Before investing with a trading platform, you should first be aware that trading in financial markets involves risks. For this, you must acquire enough knowledge to deal with market fluctuations and speculate successfully!
Choose the right online broker
When it comes to beginner trading for investing in the stock market, you should know that choosing the right online broker is important.
If you are just starting your adventure, then know that there are many brokers who offer trading services in the financial markets. However, not all of them are recommendable.
To ensure the reliability of an online trading platform, check its regulations. A good broker must indeed be authorized and regulated by a recognized authority. In France, the AMF is this authority.
It guarantees that the broker offers fair services that meet the rules in force, that it protects the funds of its investors and that it offers assistance to traders when needed.
Know your trading level
Before you engage in any financial market to trade, you need to determine your level of trading knowledge. As a beginner, it is important that you go through some training.
The latter will allow you to have a solid foundation and to master the analysis tools in order to speculate in good conditions.
When you choose a good online broker, he offers you training according to your level. Do not hesitate to take advantage of these to learn the politics of the financial markets.
Define your trading profile
As a beginner trader, it is important that you determine your trading profile. For this, you must take into account several factors:
● The capital you have
● Your financial goals
● The level of risk you can bear.
These elements will allow you to define your expenses and choose the broker that offers a trading environment adapted to your needs.
In addition, defining your trading profile will also allow you to define the trading strategy that suits you and better manage your emotions.
Choose the right trading position
Financial investments in trading depend on the investment horizon looming on the financial market. Depending on the latter and your preferences, you can opt for short, medium and long-term positions.
As for the short term, it is between 1 hour and 1 week. It is convenient for you, novice traders, because it allows you to get performance quickly. However, you have to constantly monitor your trade and transaction costs are quite high.
The medium term, meanwhile, is between 1 week and several months. As a beginner trader, it is convenient for you because it allows you to analyze the financial markets in depth and make the most of fundamental and technical analysis. Its performance is determined by the trend of the assets you have in your portfolio.
Regarding the long-term position, it is an investment that you can make for a year or more. It is suitable for all trader profiles, including beginners. You don’t need to monitor your positions all the time and transaction costs are not very high.
In addition, the gains to be made are greater and you can benefit from the reduced risks even if you invest large sums of money.
To negotiate as a beginner, do not hesitate to better inform yourself. This will allow you to acquire knowledge and avoid bad investments.