The hardest part of any career or business venture is always the start. There is a lot of learning and hard decisions are tough to get by. Just like in trading, you need the right decisions and capital partnered with the right tools that will help you determine the perfect time to open or close a trade. It’s also better if you don’t forget the risk management tools that will help mitigate your risks in trading.
There are potential profits in all markets especially if you are using a reliable trading platform like MetaTrader 5. How much capital are you willing to shed? You cannot master all the markets out there. Being greedy will only bring forth distractions and losses. Choose one market that you are comfortable with and start to learn its basics. By the time you learn the ins and outs of that market, you will find it easier to adapt and learn about other markets. Patience is the key.
As a newbie, you will need a couple of things. You will need a laptop or computer. Two monitors are advised but not required. As long as it has enough memory and the processor is fast and can run multiple programs at the same time without lagging. When you use a slow computer, it will only waste your time and you will find it hard to place orders. Remember that trading requires fast executions and any form of delay will only result in losses.
A fast and reliable internet connection is also needed if you want to execute your orders fast. Make sure that it is fast enough to run multiple tabs and applications can swiftly run in the background.
An easy to manipulate trading platform is highly recommended for beginners. Trading platforms like MetaTrader 4 and its predecessor, the MetaTrader 5 works best for beginners. Find a trading platform that can easily accommodate all your needs and has the tools and software that you need on your trades.
Lastly, the broker plays a significant role in your trading career. As a beginner, you should find a broker that offers the trading platform that you want to use in your trades. They must also offer low fees, especially for beginners who are yet to venture into trading.
Controlling the risks is very important in any trading strategy that you want to use. There are two ways that a trader should control the risks associated with every trade – the daily risk and the trade risk.
Trade risk is the amount that you are willing to risk on every trade. Ideally, especially for new traders, you should only risk 1% of your overall capital in every trade. With the help of a stop loss, you can successfully accomplish this amount.
A daily risk, on the other hand, is the daily loss that you can afford to shoulder. You can set it at 3%. Once it is hit, you can stop trading for that day.