The world of trading can seem very glamorous and it can be if it all goes well. It’s not surprising that investors want to emulate the success of people like Warren Buffet who has made billions from the stock market, and George Soros who made a fortune from currency speculation. Being an independent trader combines the world of stock trading with the freedom to work when you want and here is how you can get started.
Think about your starting capital
Before you start thinking about how and where to trade you must accumulate some funds with which to invest. The money you use has to be disposable income – not your rent money, your food money or that needed to pay your utility bills. Investing money that you can’t afford to lose is a surefire way to end up in financial difficulties.
Make sure your internet is top-notch
The world of trading has always been one of split-second decisions – today more so than ever. The internet has made it so that sales and purchases can be carried out very quickly. If you are becoming an independent trader, then you have to make sure that your internet connection is as fast as possible so that you see any changes in price as soon as they occur, and pages don’t take too long to load. As well as that, the internet connection must be reliable and consistent. There is nothing worse than the internet cutting out just as you are making an important transaction.
Open up an account on a virtual trading site
Before you start trading in real money, you should practice with fake money. There are many virtual stock markets that will teach you how to read the markets and make purchases and sales. Those sites are a great way to get a handle on what you’ll be doing with real money without risking any actual money.
Listen to experts
Stock trading is not something you should embark upon without doing some relevant reading first. Experts can also help with specific industries and companies. Hammerstone is a great resource for finding smart and well-researched market insights.
Open up a real account
Once you understand how things work, then you can open a real brokerage account to spend some real money. There are lots to choose from and you should make your decision based on factors like the minimum funding requirements, the commission fees and the features that this trading platform offers. It could be the same platform on which you did your virtual trading, but it could be a different one based on your preferences.
Don’t go all-in at once
This is your first time as an independent trader so don’t go investing all of your money at once. Make small purchases at first to build up your confidence and get a feel for the market. Always make decisions based on research into the history of companies and study the forecasts of the experts.