Recently, FinaWiki (https://finawiki.com/) has released a research report on ‘Opportunities for Trading in 2021’. 2020 was a year of rapid volatility on all the trading markets, and the sharp ups and downs attracted many new traders, among which many succeeded in taking advantage of the conditions. But as countries and businesses are recovering and adapting to the new reality, such drastic price swings aren’t as common. So are there still opportunities to be found in trading for example on IqOption or IqBroker, and if so, what are the steps one may consider taking to start trading online in 2021?
The answer is yes with experts from IqOptions (https://iqoptions.net/): online trading is becoming more popular and even if the intense volatility stayed in 2020, the possibility of considerable outcomes didn’t. So, how to start trading in 2021? Novice trader, somebody who just recently discovered the world of online trading and doesn’t know what the key points to consider are, needs to know one important fact: rash decisions won’t bring any good.
Many traders lose their hard-earned money within the first couple of weeks of trading – they dive straight into trading, without learning anything about the way trading works. Such an approach is not going to bring any positive outcomes, so instead of hurrying, take time to nail down the very basics of trading. Read the guide below including five basic steps which should be taken into consideration to start the trading journey in 2021.
Choosing a trading instrument the first step
Contrary to what others may say, choosing the right trading instrument is one of the most important things to do when just beginning. What do traders prefer: Stocks, Forex, Cryptos? Maybe traders are specifically interested in trading commodities? Or maybe traders don’t mind trying it all.
Regardless of what trader ends up picking, this step will encourage to study, even if briefly, about every trading instrument out there. This way the trader will know what’s available and what the pros and cons are.
Pick broker and open an account
This one may seem obvious, but choosing the broker is just as important. The available trading assets, fees, spreads, deposit and withdrawal conditions will all depend on the chosen broker. There are many comparison articles about different online brokers on https://expertoption.trade/ compare the existing brokers and choose the one that suits best.
Register an account and learn all about the features and analysis instruments that are available. Traders should understand the interface. This will ensure a smoother trading process.
Get a grasp of the market
To understand the full picture of what traders are dealing with, start following market news. Such resources as Yahoo Finance, Google Finance and Investing should already be in every trader’s bookmarks, so make sure to check them daily to stay on top of the news.
To better understand the very basics, traders may check the must-read books for traders. Books are a good way to get familiar with the world of investing and trading, without rushing to make big deposits straight away.
Learn about technical and fundamental analysis
What do traders see when looking at a price chart? If traders see a price that goes up and down, it’s only a small fraction of what’s actually there. Volatility, consolidation, choppiness – all these terms have a meaning and it’s important to learn what actually makes the chart move. Analyzing the chart is a huge part of a trader’s approach and outcome. Without analysis, one can only guess, and guessing is not a valid trading approach.
Mastering fundamental analysis may give traders the skill of planning the next trade after reading a piece of economic news while acing technical analysis might give the ability to find patterns in the price chart and take advantage of them before anyone else. Learn all about chart patterns, timeframes, chart types, indicators and the economic calendar.
It may seem like a lot of information to take in at once. Spread the topics and take them in one after another. Too much information might only confuse you – it is important to take it slow and pay attention to what the trader is learning about.
Many brokers provide a Practice account that can be used for practising as long as the trader likes. No need to use real money, especially not until having a working trading approach all planned. Make lots of trades and try different assets, time periods, test different indicators and find what is best. Don’t forget to analyze both traders’ successes and failures to understand what should be corrected.
Another important point to remember is risk management – includes money management techniques to trades and later on make sure to carry them through to the Real account as well.
It is never too late to become a trader, but it is important to enter this field with a deep understanding of how trading works. This is why spending time on a theory about the markets is never a waste of time. Extensive practising may allow building better trading approaches, but always keep risk management in mind and actively include it in trading. Test strategies and don’t get discouraged by failures – they are a part of the learning process.