Where should newcomers begin trading. Step-by-step improvement is the key to success!

Trading is one way to earn online. Its essence lies in online financial trading that, as a whole, run on the principles of live fund and currency exchanges. Those in marketing would like to have you think that it is a very simple and highly-lucrative way of earning additional income. However, the reality isn’t so bright, there is no “easy money”.

Anyone can achieve success trading. Every experienced trader was once a beginner, completely unfamiliar with the ins and outs of the exchange. That being said, much like in any other professional field, in order to achieve success trading on the financial markets, you must invest a reasonable amount of time and effort.

So, the strategic goal is clear, learn how to trade so you can generate a stable income. All that is left to clarify is what tactics beginners should take in terms of a plan of action, so as to fulfill their dreams as quickly and easily as possible. This article aims to answer the questions of where newcomers to trading should begin. It is very important because gradual growth is the key to success.

What is trading

To begin with, it is worth clearly outlining trading as an idea, because you can’t learn about something without having understood the root of the question. Trading is a speculative process where profit is generated from the difference of asset price at specific times. You can trade with anything, however, more often than not it is with currency pairs, exchange indexes, and raw goods. Recently cryptocurrencies have gained traction as well.

The principle of speculation that everyone is familiar with is, “buy low, sell high”. In such a case, it is only possible to generate profit from a price increase. That being said, the terms of contracts on the financial markets enable you to earn profit not only from positive price trend growth but also from decline. First, a deferred delivery sale agreement is drawn up, but later it is brought back but at a lower price. This includes one of the main benefits of has over-invested directly, you can profit under any market conditions, even on the back of a full economic collapse.

Where should newcomers to trading begin

Contracts with fixed terms

Classic trading is tied to the percentage of profit made from how significantly the price changes during the trading operation. The introduction of futures with fixed terms, however, changed the situation. They laid the basis for the modern “Buy/Sell” contracts traded online. Their main advantage is simplicity. In order to generate profit, traders had to be relatively sure of their forecasts, in the sense of where the price would be at the time the trade would be closed, higher or lower than the current value.

There are also contracts for difference (CFD). The profit isn’t fixed, rather it directly correlates with price fluctuations. Binomo trading platform offers users both kinds of contract, creating a wide variety of opportunities for beginners and professionals alike.

Where should a beginner start?

The very first step (to acquaint yourself with trading) has already been completed. Therefore, let’s move on to the main topic of this article, the step by step process that traders should follow to educate themselves on how to trade effectively. For starters, here is a short outline:

1. you first encounter trading, typically through an advertisement;
2. you acquaint yourself with the topic more in-depth, understanding the basic ideas;
3. you select and register on the website of a trading platform;
4. you open a free demo account and place your first trades;
5. you begin with systematic research, watching video courses and reading articles;
6. practice, practice, and practice again combined with continuously expanding your understanding;
7. you make the move from a demo account over to a live one, investing your own real money;
8. using ready-made trading strategies, work out your own;
9. continue gaining experience, analyze your mistakes, and modify your trading system.

Ask any professional and they will tell you that a trader’s education is never over. The market conditions gradually shift. Therefore, if you don’t keep track of current trends and respond quickly to changes, you won’t continue making a profit.

Choosing a company and registering on a trading platform

This is a key point, the most important one when starting out. The problem lies in that there are many frauds out there, whose goal is to profit from careless beginners. They simply don’t release users’ funds. You can’t access your profit or even recover your original deposit. This is why it is so important to choose only verified
trading platforms recommended by well-known services.

There are several companies we would recommend listed on our website. One of them is Binomo. This company in specific provides the ideal platform for newcomers to trading. This much can be gathered from all their awards. In 2015, Binomo was named the best trading platform for beginners by Fx Expo Awards.

The advantages Binomo has to offer for beginners:

• you get a free demo account, enabling you to refine your trading skills without any financial risk;
• the minimum deposit is $10 dollars or ₽500 Rubles, with investments from $1 dollar or ₽100 Rubles;
• they offer a few dozen video courses expanding on key trading points;
• there are around 100 overviews of ready-made strategies with detailed trading instructions;
• they provide individual instruction under the advisement of a personal manager/analyst.

The company offers provides truly excellent conditions for learning, because from a technical point of view there is no difference between a demo account and a live one. In theory, it is possible to learn how to trade from square one without investing any funds at all.
That being said, the psychological aspect of trading is important. Trading on a demo account is very different than trading on a live one. Therefore, there is no benefit to excessively prolonging the demo account phase. You can end up forming a warped relationship to money, because a real deposit, unlike on a demo account, can’t be replenished with the click of a button.

Individualized instruction is only available for VIP clients who trade with a real deposit and have invested a minimum of $1,000 dollars. This premium status comes with many other privileges, enabling you to trade more effectively. For example, an increased profit percentage or a 100% bonus upon replenishment.

Trading on a demo account, the pros, and cons

A demo account is, in essence, an identical account with the same opportunities, although, unlike with a live account, there is no chance to generate real profit. It simulates the live market.

The advantages:

• you can trade on the live market without risking your own money (ideal for beginners);
• you can test out risky strategies and new trading systems (ideal for experienced traders).

The drawbacks:

• trading deposits carry little to no weight in the mind of the trader;
• you can’t earn funds, however, profit is the main drive for education.

Overall, the skillful use of a demo account has more benefits than drawbacks. It makes it so you can get through the initial stage of trading with minimal losses. As always, you need to find a balance, a “happy medium”. As soon as you begin to achieve consistent positive results and stop consistently losing funds on a demo account, then you can gradually try trading on a live account using a previously-tested strategy.
If you haven’t already tested it, then go right back to the demo account, as at this stage it would result in real financial losses. That isn’t an option for the majority of beginners. In any case, it will be the price of experience. That being said, in the initial stage of trading on a new platform, it is recommended that you use a demo account either way. This is true for experienced traders as well. It is important to learn how to work any new trading terminal first and foremost, such as how to place trades, apply indicators and so on.

Where to learn about trading

Trading is as dense a topic as any of your typical technical professions. Gaining a basic understanding of the most important aspects doesn’t guarantee success. The issue is that the market can’t be fully forecasted through an algorithm. If that were the case, robots would have long taken over on the exchanges, as they have in the majority of manufacturing.
80% of a trader’s success is due to their “background knowledge”. It includes their knowledge of market analysis methodology, capital management guidelines and other nuances. The remaining 20% is down to a “feel for the market” or intuition. Of course, there are no psychics here. The issue is that our brains are very complex structures, in many ways science doesn’t fully understand yet. So, as with any on-going developing sphere of activity, some of its functions remain concealed.
When an experienced trader studies an asset chart, there are many unknown subconscious processes in their brain at work. Along those lines, they come to two very different conclusions in two identical (from a technical point of view) situations, and that is completely justified.

The best way to learn is to trade on the live market. It is these conditions specifically that Binomo offers. The key factor to success is your own trading experience. No ready-made strategy will replace your own knowledge and understanding of the market. Using a variety of trading systems is very helpful in the early stages of teaching yourself to trade. Later on, every successful trader must work out something of their own. Building your own trading system to best suit you as a trader.

The method trading systems are based on

For starters, learn how to place trades on a trusted trading terminal. In the second stage, you can move on to researching methodology. There are two approaches to market analysis, fundamental and technical. The latter being easier than the former. Therefore, it is worth starting with the basics of technical analysis.

Beginners must undergo some sort of educational course. For example, Binomo provides dozens of video courses that cover all the principal points of trading. To begin with, start trading with 1 indicator. Ideally, simple tools are best suited, such as the Moving Average, the RSI, Stochastic and others. Binomo’s trading platform provides 14 of the most popular indicators.

Later, you can move on to combination systems. On our site, as well as in the “Help” section on Binomo’s trading platform, the best systems for beginners are listed. However, it is worth pointing out to beginners that the effectiveness of a strategy isn’t based on how many tools are used in it. Actually, many professional traders trade on a plain candle chart. This approach is called Price Action.


These are the recommended approaches in sequence:

• develop your trading terminal’s interface, trading on the indicator “majority rules”;
• trade with 1 simple indicator;
• learn chart analysis, tools such as “lines”, “channels” and others;
• learn the basics of fundamental analysis through the ”economic calendar”;
• develop a combined strategy with 2-3 indicators and supplementary tools;
• work out your own trading system based on knowledge you’ve acquired and your practical skills.

Conclusion

Start trading, just start trading on the market, it is that simple. That being said, learning how to do this effectively and generate a stable income in more complex. However, it is an achievable goal, so long as seriously set yourself to it. Of course, out of 100 beginners, far from all will become professional traders.
Don’t jump to any conclusions too quickly. Until you try something new out for yourself, you can’t make any judgments. Demo accounts and low-threshold deposits allow you to do just this with either minimal financial risk or completely free from it. Most importantly, you need to approach this question seriously. Keep in mind, trading isn’t gambling, it is a serious field.

TRADE CRYPTOCURRENCY

“General Risk Warning: Binary options and cryptocurrency trading carry a high level of risk and can result in the loss of all your funds.”

Where should newcomers begin trading
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