How to start trading? First steps for beginners

The path to understanding trading

Trading in the financial markets often gives the impression that it is only for experts and experienced investors. Many have encountered stories of large gains and losses, which can give the impression that trading is a risky business. In fact, it is a methodical work with financial instruments – stocks, commodities, currencies – with the aim of making profits in the short term. Unlike traditional investing, which focuses on long-term value growth, trading requires a proactive approach and quick reactions to market movements.

What is trading?

Trading is an active form of investing where traders buy and sell various financial instruments, often in short time intervals. The main objective is to take advantage of short-term market movements to make a profit. Unlike traditional investing, which relies on long-term growth in asset values, trading focuses on quick trades and requires careful analysis and quick decision-making.

The difference between trading and investing

One of the main differences between trading and investing is the time horizon. Investors hold their assets for the long term, sometimes for decades, which allows them to benefit from long-term market growth. Trading, on the other hand, relies on short-term profits from frequent trades. Success in investing depends on a long-term perspective and resilience to market downturns, while trading requires a quick reaction to market changes.

How to become a trader?

Becoming a trader is not an instant process. It takes time, patience and determination. Here are some basic steps to help you get started.

Familiarity with the trading platform: Learn how to work with time frames, enter trade orders and analyze trade history.

First steps: Learn to perform technical and fundamental analysis, plot trend lines and S/R zones. Learn how to manage trading positions and calculate trade volume.

Business strategies: Create your own business strategy or learn an existing one. Gain practice, perform backtesting and optimization, identify the strengths and weaknesses of your strategy.

Junior trader: Verify your first prop trading account and start trading with microlots. Train your psyche and learn about the pitfalls of trading, such as cognitive dissonance or FOMO (fear of missing out).

Experienced trader: Review your knowledge and experience over the long term. Maintain consistency in profits, minimize losses and maximize gains.

Pro trader: He has confidence in what he’s doing. It can gradually afford to increase risk, diversify its portfolio and apply its knowledge to different trading instruments.

Pros and cons of trading

Pros:

  • Unlimited income
  • A large number of business techniques and approaches
  • Possibility of shorting (speculating on a price drop)
  • Flexibility to work from anywhere, anytime

Cons:

  • More demanding on the psyche
  • The need for initial investment in education and business capital
  • Risk of loss of capital
  • The amount of poor quality information available on the internet

How to really get started with trading?

Trading is a fascinating and potentially profitable activity that offers financial and time freedom. However, success in trading is not free. It requires thorough preparation, patience and strong nerves. You will go through several phases of development, during which you will learn both the technical side of trading and your own psyche. The key objective is long-term consistency in profits and the ability to minimize losses.

If you are prepared to invest time and effort in your education and practice, trading can provide you with not only financial gain, but also valuable experience and skills that will last a lifetime. Follow us on Instagram and join our Facebook page where we keep you up to date with interesting trading opportunities.

Start trading with EverTrader

If you don’t have enough capital to start trading at a professional level, consider EverTrader. We are a Czech prop company that has been operating on the market since 2021. We offer the opportunity to start trading on accounts starting at $5,000 after successfully passing their Evaluation. Evaluation for a $5,000 account costs just $35, making it an affordable way to raise capital for trading.

EverTrader provides support in English from 10am to 10pm and offers an intuitive trading platform, EverStation Pro, which is integrated with TradingView. This platform will provide you with cutting-edge analytical tools and educational materials for your further development. Join our global network of over 3,000+ satisfied traders and take advantage of our fast payouts, which also take place at 14 day intervals.

Choose the program of your choice, go through the Verification and start trading for EverTrader. Trading is a skill that can be learned with practice and persistence. Get started today and take your trading skills to the next level!

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