Trading on borrowed funds
There is nothing worse than trading on money taken on credit. If you do not have the necessary experience in trading, then the probability of your failure on the exchange is extremely high. There is an assumption that all newcomers lose all their money at first. A loan “presses” a trader, and he cannot work effectively in the market. You can borrow money not only from friends, acquaintances but also from the bank. If you borrow money from friends or acquaintances, it is likely that you will quarrel with them. It’s even worse to take money from a bank. If friends or acquaintances can forgive you, then the bank is not. You do not want to merge a deposit? Never trade on borrowed funds.
Trading on last resort
This type of trade is less dangerous than borrowed money trading. And yet: do not trade for the last money. It will be extremely bad to leave their relatives without means of subsistence. Money for trading should be “superfluous.” Of course, there is no such money, but there can be money that you can completely do without.
Trading is considered male work, although many women have been able to excel in this activity. Apparently, men are endowed with a philosophical mindset and, perhaps, are better disciplined. If you want to succeed in the stock exchange, then your character should be masculine.
There are legends about this trading system. If most traders on the exchange lose their money, then you need to play against the majority. Whether this is so is difficult to say. But so think dissenters. When most people put the chart up, they play a drop. And vice versa. However, dissenting traders do not always do this, but only at the right time. Whatever they say, but there is something in this technique.
Overclocking a deposit
Beginning stockbrokers want to quickly get rich and resort to such a technique as overclocking a deposit. Is it necessary to say that the overwhelming majority of accelerations end in disrepair? It will be reasonable for the trader to slowly and confidently go towards his goal, and not to weird. No overclocking of the deposit can be justified. Some speculators popularize their trading methods for a miracle – to increase funds, but they should not be trusted.
The yield on the exchange is considered interesting from 30% per annum. Of course, 50-70% will be more interesting for the trader and for the investor. You can count on 100% per annum, but you must understand that with this “appetite” the risks will be slightly higher.
“Pig tactics” is a prohibitive trade. As a rule, newcomers and greedy traders resort to it. You may want to double your deposit in a month, but such trading will be doomed to failure. Once an aggressive trading tactic can get away with it, but then a trader will surely fall for it. There are traders who make hundreds and thousands of percent per annum, and at the same time are very risky. Many of them come to the exchange for excitement.
There are no lucky traders. If someone tells you that you are special, then you need to beware. Maybe someone wants to mislead you. There are traders who are born for this business. Many doctors of psychology, philosophy, chess players, drafts players, poker players, wrestlers, tennis players succeeded. Although, among the successful speculators you can meet people of various professions. For example, a train conductor or a cook.
There are good markets and bad ones. For example, the bull stock market in 2009-2010 was very good. But traders have to work in any market.
Choosing a broker
The success of your business depends on the right choice of broker. There are dealing centers that charge huge transaction fees. It is not advisable to work with such companies, because it will be a one-goal game. As a rule, professionals keep transactions open for several weeks, or even months. If the fees are huge, then you will always lose. Ask where the broker is registered. Learn the terms of trade and input-output capital.
Such trading cannot be inherently profitable. Impulsive transactions in most cases lead to losses. True, intuitive deals can be profitable. But intuition can appear only after years of trading. Sometimes newcomers to trading mistakenly call impulsive trades intuitive.
Do I need to contact specialists to learn how to trade? Most traders learned to trade books effectively because they had no other teachers.
Express training can also be effective but subject to a good teacher. According to one successful speculator, trading rules can be learned in 2 days. But the difficulty is that you need to learn to follow these rules all your life.
You should be wary if someone teaches you to trade in only one market. Perhaps he is interested in you losing your money.