good tips for a beginner

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The world of trading does not cease to have new adherents. Many tools have also been developed to make the task easier for investors. However, since the trading sector, like many other sectors of activity, has its little tricks, it is important for newcomers to know how to go about it in order to make good investments.

In this article, we will see how newcomers to the world of trading can behave in order to be able to succeed.

What is trading

Trading is an English expression still used in French to designate the sale and purchase transactions that take place on the financial markets. If at the beginning these operations were carried out by investors still called “traders” from the trading rooms of stock exchange or financial institutions, today, the situation has changed a little more. Now, thanks to the internet, it is possible from any geographical position (as long as the regulations of the country allow it), to carry out your trading operations. Don’t hesitate to visit the Droitdunet website to learn more about this trading activity.

How to take your first steps in trading

When you want to start trading you must follow certain steps described below

Choose a broker

The broker is in a way an intermediary between the financial market and the trader. Clearly, the trader chooses the action which must then be executed by a broker. Even if everyone can claim to be a trader, not everyone can be a “legal” broker since this sector is very well regulated. Today, there are a multitude of brokers around the world, each with their advantages and sometimes their disadvantages. Among the best brokers, we can mention:

  • eToro: It is one of the best brokers and above all, a broker suitable for beginners. In addition to having an intuitive platform, eToro provides traders with a multitude of tools. With this broker you can be present on the CFD financial market, at the level of raw materials, invest in stock market indices, crypto-currencies… This broker also has a demo account.
  • Libertex: Appeared on the market in 1997, this broker is also talked about. With this broker, you will be able to trade both via the web application and via the mobile application. Among other assets on which you can invest, we can mention: CFDs, crypto-currencies, commodities…

Create your account

As soon as you have chosen the broker that suits you after having checked its legality and its offers, you will need to open an account. Generally, opening an account is not a very complex operation. Information such as your name, your first name, your email address, etc. will be requested. When you finish filling in these different fields, the broker’s team will check the information you have entered in order to validate the creation of your account.

Operate the demo account

When you’re new to trading, it’s always best to learn how things work before investing your money. With demo accounts, you have the opportunity to understand the realities of trading without first crediting your account with your broker. In addition to demo accounts, many video tutorials are made by professionals to inform you about the necessary techniques.

Make a fund deposit

In order to start your first investments, you must credit your account. But it should be kept in mind that trading beyond the benefits that can be derived from it involves a good deal of risk. As much as you can win as much it is possible for you to lose everything. It is therefore necessary to avoid investing money that you have lent to a financial institution for example, to invest all your savings… In general, it is advisable to invest “what you can lose “. Brokers very often offer you a variety of payment methods so that you can fund your account. Bank transfer, bank card (VISA, MasterCard…), electronic payment (Paypal, Skrill), crypto-currency… Crypto-currencies are not necessarily for the general public since they are not like the traditional currencies that we use . It is also possible that you have a minimum amount for your deposit. It all depends on the broker you have chosen.

Make your first investments

Now that you have credited your account, you have the opportunity to act on the financial market. Depending on your skills or preferences, you can invest in forex, the stock market, cryptocurrency or other assets. Be aware that some brokers like eToro offer you the purchase of FDJ, Google, Amazon, Netflix shares…

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