If you are even a bit part player on this planet you would certainly have heard all the buzz about Spread Trading. From here to Timbuktu everyone and their aunt is getting online with this amazing way of trading in the worlds forex, stock and commodity markets. As it is so easy to start trading here are a few pointers to bear in mind before you start trading online with your hard earned money.
Firstly. Start off small.
While you are learning the ins and the outs of trading take time to get to know the market, the players and more importantly your own psyche.
Paper trading first will give you a great idea if you are on the ball or if you need to spend more time honing your skills before taking the plunge with your money. Find out what the smallest amount you can start to trade with and stick to it. Don't double up if things go bad. Know in advance what you are willing to play with and do not go over.
If at all possible, get the advice of someone who has traded for a while and see what they do. Getting to know what other people think of a market is a very good way to help you get accustomed to the market too. Read as much information as you can on the market and trading in general. Learn different strategies as there is certainly more than one way to profit from the markets and there are some excellent sources of information available to help you.
Set yourself a stop.
Even before you put on a trade make sure you know where you are comfortable to get out if things go against you. Set a price and stick to it. If you are comfortable with losing 10% on a trade, set a stop and you will be comfortable knowing that you have put a limit on your loses.
Getting to know the hows, the whys, and the what force of online trading will definitely make you a much better trader in the long run. Taking a little more time with you preparation before hand can help eliminate the silly mistakes which can set you back before you have even begun.
By : Tony Perrin - http://www.onlinefxtrading.co.uk/
No comments:
Post a Comment