Having decided to take up trading, a beginner must, at a minimum, answer 2 important questions for himself: How much time are you willing to devote to trading? And are you theoretically ready to lose the funds invested in trading?
If you think that you can make good money on Forex without effort, you are mistaken. Many successful traders lost their deposits more than once before delving into trading and learning how to make money.
Trading in Russia - where should you start?
If you decide to trade on the stock exchange, then know right away that it will not be possible to combine trading with other types of active activity. This is work, in the full sense of the word, and by engaging in trade, you will have to exclude other attempts to earn money. The only exception is your main job, preferably not related to a computer, as your main income for “eating”.
Touching upon losses in trading, I will say this, you can believe the market axiom: the probability of stable, long-term earnings will be inversely proportional to the number of transactions you make.
To put it another way, it should be understood this way: the less you trade, the more likely you are to engage in trading for the long term.
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How much money do we need for online trading at first?
To start, experienced traders recommend having about $1000 in reserve. Why exactly so much? Working with such an amount, you will be able to comply with money management and, finally, analyze large time frames (time periods).
And then, taking into account the fact that you are still learning at the same time as trading, and somewhere from your own mistakes, experienced traders recommend immediately preparing for large expenses and having a small amount in your pocket, at least for reinsurance.
Where should you trade in Russia?
Since trading is done online, you can trade anywhere. Your chances of becoming a successful trader in Russia or Ukraine are the same.
The only thing that is really important here is to choose the right DC or broker, and we will talk about this below.
When will trading in Russia begin to bring you profit?
Let's just say that there is no specific time frame for when you will start trading consistently with profit. However, much depends on the level of training and skills acquired during the training process.
Below is a series of steps that any new trader who wants to achieve stable results in Forex trading must go through.
Price Action and VSA vs Fundamental
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Is it true that in stock trading Price Action and VSA analysis is an order of magnitude more effective than fundamental analysis? It is this question that I wanted to discuss with you in this material. But to be more correct, today...
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Types of trading
Another advantage of online trading is complete freedom of action.
You are not tied to a strict algorithm of actions, and you have the right to choose how to conduct your trading.
Conventionally, trading can be divided into 5 categories:
- Discrete. This is independent trading without a clear plan of action. More precisely, you choose the plan yourself and follow it or not. That is complete freedom. The easiest option, often chosen by beginners, but you should understand that this is the most risky trading, especially if at this stage you do not have a clear understanding of the market and its laws.
- Algorithmic. Trading with strict adherence to the rules of the chosen trading strategy. You choose ready-made tactics and make deals according to the algorithm. The most preferred option, especially for beginners. You do not need to evaluate the market and make decisions on your own. This will be done for you by a tactic that is already bringing profit to the author.
- Investments. Don’t want to trade yourself or just don’t have time for it? Entrust your finances to an experienced manager who will trade and receive a percentage of the profit for this. Such accounts are provided both by brokers themselves and by third-party companies, and the main difficulty lies in choosing a manager who is not insured against errors.
- Copying. A popular type of trading that has been gaining momentum over the past few years. Its essence is to copy the transactions of successful traders. You choose someone whose signals are interesting to you, or coincide with your vision of the market, and enter into transactions at the same time as him.
- Auto. Trading with the help of advisors and special robots. Such programs are installed in the terminal and conclude transactions on your behalf. The problem is that automatic robots are not able to evaluate a number of factors, and are guided only by an internal algorithm. Errors and drawdowns are inevitable when using such systems, so you need to work with them as a crane operator. You can’t lift the load without a crane, but it won’t move it anywhere without you.
Soberly assessing all 5 types, you understand that the second point is of greatest interest. Algorithmic trading, both manual and using robots.
The strategy is developed by a professional and tested by him, and you just have to follow the rules.
In addition, there is a division according to the duration of trade:
- Scalping. Trading on short time periods. One transaction often lasts no more than a minute, after which it is closed even with minimal profit or loss.
- Intraday trading. Transactions are concluded within the trading day without being carried over to the next session. This allows you to save on broker swaps and avoid gaps that often form at the opening or closing of the day.
- Medium term. Trading lasting several days or weeks. Intraday trends are not significant here, and it is easier to predict the market, although the income from such trading will be lower.
- Long term. Transactions with a future perspective. This could be a month or even several years. In fact, long-term is one of the types of investments; the main thing is to choose the right asset.
As you can see, there are a lot of nuances and varieties of trading, but if you are a beginner, you should not make a choice right now.
It is better to try your hand and experiment, and later make a decision and choose the type of trading that is most convenient for you.
The history of GameStop and the bankruptcy of hedge funds
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How much and how did I lose on the stock exchange?
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Just imagine, friends, how many dislikes and hype there would be if I released a video clip “How much do I earn on the stock exchange”. It would be something with something! However, on the agenda, material of a completely opposite nature - “How much I...
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Investments in trading. Detailed analysis. What is the best way to make a profit on Forex?
Do you want to become an investor? Do you have spare savings that you want to invest profitably? Then this article will help you. A detailed guide for investors in trading. Financial, stock markets, futures or currency trading are great. All of these sites have high risk, as well as high return.
PAMM account
I am categorically against all types of PAMM accounts for Forex, as well as against any offers to invest money coming from brokers and market analysis centers. There is no truth in this, and with a high probability they will simply try to take your money. Because everything you put in there will inevitably be lost. No recommended portfolio manager will make you a profit. Often these managers themselves are victims of deception.
There are tiny chances in the PAMM system; I personally know a person who raised his deposit from a couple of hundred dollars to two million rubles in less than a year. But, dividing capital into different companies and coming out with such a profit is the exception, not the rule. The PAMM system lacks transparency and works against all its participants, one way or another.
Start trading Forex with the trusted brokers listed below |
Invest in a trader
The only possible way to invest in the financial market is to invest in a trader. Take your money directly and invest it in a trading trader or perhaps a specialized traders fund.
The best thing in this case is to trade on your account. This means not sending money to someone unknown, but having an account with your own name. The trader involved only has access to it to trade directly on it. In this case, you are protected from deception. After successful trading, withdraw your profit and transfer the percentage to the manager.
This will work if you have relatively large capital. But, even if this is not the case, then with small amounts you can negotiate with talented traders who simply have not yet had time to rise. Many managers have several investors like you and successfully trade on several accounts at once.
In Europe or America, this practice has developed well, and, as a rule, one trader manages several million dollars from different investors, where he later creates his own fund. Such a system also has its own nuances, frauds for deception, which you need to be able to circumvent. But, we live in Russia or the post-Soviet space and everything is simpler here. And it makes no sense to talk about sums of millions of dollars, because people simply do not have such funds.
In any development of events, all issues are resolved by personal contact. You need to know your trader. His location, whether he has a family, his work experience. You need to know this in order to understand whether he is a reliable person or not. You need to constantly be in dialogue with each other, know his trading style. How and what he risks, what instruments he uses, trades manually or with the help of a robot. And if it’s a robot, what kind of algorithm is embedded in it?
Systematically analyze his transactions. Investing directly in a trader is precisely a trusting relationship. This is the only way to achieve profit in the long term. Proper control, but without pressure and anxiety. In cases of failure, give him the opportunity to continue working calmly after he returns to normal. Disturbing the manager every day with or without reason, or worse, directly interfering with trading, means the risk of losing all your money due to this pressure.
You should be close, but at a distance. But, if you find out that a trader has problems in his personal life, this is a reason to withdraw your investments or close the trader’s access to the account. Only after the situation normalizes can we continue to work together.
Start trading Forex with the trusted brokers listed below |
How much profit can you expect?
There is a very high investment risk here, so you can rely on a gain of more than 100% per year, and in some cases tens of times more than this. The initial amount of capital matters. The higher it is, the lower the profit increase, because risks are intelligently reduced.
The percentage of profit withdrawn also affects. The more we leave on the deposit, the faster it increases.
And, of course, the percentage that we give to the manager. A golden mean is needed here. A small percentage reduces his incentive to trade actively and effectively, a large percentage logically reduces the investor’s profit. On average, the manager receives from 20 to 30% of the profit. In some cases, he may receive half. Depends on the size of the initial investment and the professionalism of the selected trader.
My main recommendation is risk diversification. If you have free capital, allocate 20% interest to invest in trading, and invest the rest in real estate, for example.
Read useful sections of the site for successful trading: |
Knowledge
And now it’s time to talk about the most important thing. Something without which it is impossible to make a profit.
This is knowledge . You must understand what you are investing in. How it works, what types of analysis exist, methods for managing open positions, trading psychology. You need to understand this in order to speak the same language with your manager and, of course, intelligently assess his potential and abilities.
If you do not understand the topic of the issue, you always lose money. There is simply no room for not knowing or missing something. The market does not forgive mistakes.
I am a professional trader, but I am also an investor. Because I found talented traders for my investments. My relatively small deposit is distributed between them to reduce risks. This gives me a nice increase in interest per year. The amounts are not huge, but no bank will give such an increase.
I have no difficulty investing because I understand trading. I know who you can trust with money and which people you should avoid. I am able to independently analyze the entire trading history of my manager.
Therefore, every potential investor should study trading to the maximum extent possible. Only in this case will all investments lead to the desired goal.
Read useful sections of the site for successful trading: |
learn more about Forex trading and binary options trading on our websites!
Triangles in trading. Why are they dangerous?
Aleksey Russkofff 2021-05-162021-05-19
2021-05-162021-05-19
How to trade triangles? In which direction will the breakout occur after the triangle ends? What does the triangle portend? Questions of approximately this nature can be found in the test for the certificate of a qualified investor from the Central Bank. I know this for sure, because I myself have...
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How to start trading
It's simple, here are five steps.
Complete training
Take a look right now at these two collections:
- Trading courses - a general selection with training programs for all instruments: securities, currencies, futures contracts, raw materials.
- Forex trading courses – only on the foreign exchange market.
I made both selections. I tried to collect as much free materials there as possible. It seems to have worked out, so don’t pass by.
If you are too lazy to go there, here is the first lesson of the “Basic Course” of Forex trading from Alpari. It is taught by Eduard Sungatullin, I studied with him myself. Click “Play” and watch it right here.
He sometimes strongly scolds those who watch online and remain silent in the chat, do not pay attention to it.
Choose a broker
You will not be able to buy and sell financial instruments yourself. The broker will do this for you. A broker is a company (Russian or foreign) that, on your order, sells or buys something.
The Finam broker is most suitable for trading on the stock market. This is a large, serious company with a license from the Central Bank of the Russian Federation. He has offices in different cities, where you can go to study.
I have a separate article on how to choose a Forex broker, go ahead and read it.
Open a demo account
A demo account is a practice account with fake money. You can train on it, test trading strategies, and set up a trading terminal.
To learn how to use demo accounts as efficiently as possible and which broker to open them with, read the article about demo accounts.
Open a trading account
When you are comfortable with educational trading and feel confident, you can open a real account and deposit money into it.
Start trading
The courses are completed, the training is over, there is money in the account - start real trading. I’ll tell you how to avoid losing money in the next block.
16.11.2019
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Flats for most beginners seem to be something like Eldorado. Where you can rake in money, just in batches. However, behind this feigned simplicity, hidden are quite complex market mechanics. Often, without understanding which, novice traders get disappointed time after time...
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Is it possible to live from trading?
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In this article I will answer the question; “How to live from trading”? At least I’ll tell you which strategy is best to choose to develop yourself as a professional trader. Hello dear colleagues, investment traders. My name is Artem Zvezdin, and...
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Variety of trading
Today, there are several types of trading activities. This is explained by different criteria for their classification. Based on the form of ownership, professional and private (independent) trading are distinguished.
Professional trading is carried out by highly qualified professional traders and analysts (often with appropriate certificates). They, as a rule, are employees of large financial institutions (banks, insurance and investment companies). They carry out operations on behalf (application) of clients at their expense or at the expense of their companies.
Private trading is carried out by independent, non-professional traders. They act at their own peril and risk, in their own interests and at their own expense. It is private independent trading that has become widespread due to the global computerization of exchange activities. Now anyone from anywhere in the world can take part in the auction.
Computerization has also affected the timing of transactions. This, in turn, has increased the variety of types of trading. Depending on the terms of transactions, the following are distinguished:
- day trading (day trading);
- scalping (high frequency trading);
- positional (short-term) trading;
- medium-term trading;
- long-term trading.
During day trading, operations are carried out over one trading day. At the end of the day, the trader closes all operations. The work is carried out with little capital.
With high-frequency trading, operations last from several seconds to several minutes. The profit from one transaction is insignificant. But the trader receives income due to a large number of transactions (high frequency). This type of trading is especially popular in online trading among modern youth.
Short-term trading involves making transactions over several days. With medium-term, only a few transactions are made per year (but the amount of income from each transaction increases). Long-term trading is also called investing. It can last for several years.
The spring principle in trading
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What is the spring principle, and what does trading have to do with it? In fact, this is a quite apt comparison to the market. Because the very structure of market movements is constantly compressing and decompressing. Reminding us of the same spring principle. Dear Colleagues,…
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Skills a trader cannot do without
Government institutes and universities do not train traders as such.
You can get an economic or legal education at a prestigious university and it will certainly play into your hands.
But in fact, most modern traders do not have it, and are generally far from such topics.
Anyone can become a trader.
Do you want to become a trader?
Not really
It is much more difficult to become a “successful trader”, and here you will already need certain knowledge and skills.
Let's start with simple, human factors, without which it will be very difficult to achieve success:
- Perseverance . Get ready for the fact that you will spend long hours behind a computer monitor, especially at the initial stage, when you do not yet have a clear strategy and understanding of the market.
- Self-control . The desire to make money here and now often becomes the main cause of collapse. There is no rush in trading. Every decision must be balanced, and emotions are a direct path to losing your deposit.
- A clear understanding of the goal . Don’t think that if you shell out $200 today, you’ll wake up a millionaire tomorrow. This won’t happen, but you can become poorer by these 200 bucks easily and in just a couple of minutes. A trader always sets goals and goes towards them, and most importantly, they must be real and not illusory.
- Patience . The path to the pinnacle of fame is long and thorny. Yes, there are striking examples of quick gains in trading, but this is rather an exception to the rule. In fact, it can take years to master the market and achieve a stable profit, and you should be prepared for this.
As for special knowledge, these are economics and mathematics.
Only this knowledge does not have to be deep.
In fact, a basic understanding of how the global financial system works is enough.
What influences the price, and what factors can change the balance of power in the market.
By the way, all this knowledge does not have to be absorbed in large quantities at once. They will come with time and experience.
Believe me, once you start trading, you won’t even notice that within six months you will recognize John Powell and Benoit Care by sight.
Volume levels - trading methods.
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What are volume levels on the stock exchange? What do they mean for the market, and how can you best use them in your trading? I will answer these, and many equally important questions, in this lecture. A…
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What is trading
In short, trading is trading on a currency or stock exchange.
Such exchanges are the basis of international economic relations, and not everyone can get directly onto the trading platform. This requires special accreditation, and brokers have it.
It is brokers who carry out all transactions, but they do so on the orders of traders.
Previously, in the pre-Internet era (yes, yes, there was that too), orders were given by telephone.
The trader called his representative and received current stock quotes from him, after which he made a decision to buy or sell an asset.
Today everything has become much simpler, and to access global quotes it is enough to have a personal computer or any other device with Internet access.
Trading is carried out through a special application (trading terminal), which is linked to an account at a brokerage company or dealing center.
The trader replenishes the deposit and starts trading through this terminal, that is, selling or buying assets.
Here one involuntarily recalls the word speculator, and in fact that is what it is, only without the negative connotation that this word received in the post-Soviet space.
Trading is speculation in exchange-traded and over-the-counter assets in order to profit from price fluctuations.
Blocking the account for overclocking. Central Bank initiative.
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The Central Bank came up with the initiative “Blocking the account for market manipulation.” Of course, this formulation is on my behalf, very conditional. Therefore, in order to understand in detail the next restrictions from the Central Bank. I'm afraid I'll have to put everything into pieces...
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