Where to start for a novice trader - 10 tips from professionals

The RUVDS blog on Habré has seen everything: the popularization of JavaScript and cool translated materials, yachting, issues of education and professional development, burgers, cheeses, beer and calendars with cybergirls. The idea to talk about the basics of trading and working in the stock market has been with us for a long time, and here’s why. Most companies writing about stock exchanges have a clear goal: to get clients for their instruments and brokerage accounts, which means that in their articles investing is an extremely attractive activity that should become a hobby for every geek. The only thing we can offer new traders is a VPS with trading platforms, and we have no incentive to present the world of stock market trading as a means to get rich. We decided to make a series of articles about the basics of trading and the most popular assets for beginners. Honestly, without appeals, take money to a broker or open your own account in a specific bank. Well, it’s up to you to decide whether this is your path or not. Sometimes it is much more profitable and even faster to master a new development stack and upgrade your salary and stable income to the level you need.

What is trading in simple words

The concept of “trading” refers to the trading activities of legal entities and individuals associated with purchase/sale transactions of various financial assets in order to generate income. In fact, this is legal speculation on price differences.

Where do they sell?

Trading transactions are carried out on specialized financial platforms - exchanges (stock, commodity, cryptocurrency) and the over-the-counter Forex market. The assets used are currencies, stocks, indices, bonds, precious metals, cryptocurrency, oil, etc. Trading instruments can be options, futures, CFD contracts.

Profession trader: what is it?

Modern stock exchange players have acquired a new “image”: today it is a popular profession of a trader, which, thanks to the Internet, has a multi-million army in all corners of the globe. A trader’s professionalism directly affects the amount of his earnings, which is a powerful incentive to master all the nuances of speculative investing - buy cheaper and sell more expensive.

How traders work

A successful trader is, first of all, a competent trading analyst. He devotes the lion's share of his time to studying patterns of changes in market prices, using technical (graphical) and/or fundamental analysis.

The technical part, the operational component of trading, is carried out through authorized brokers (for Internet trading, trading terminals are provided that can be installed on a PC or portable mobile devices).

Required skills and knowledge

Trading, like any other professional activity, is based on special knowledge of the “subject” and practical trading skills.

The list of minimum requirements for trading includes:

• trader terminology;
• types and principles of operation of exchanges;
• functionality of trading terminals;
• basics of technical and fundamental analysis;
• building individual trading strategies;
• deal management tactics;
• rules of financial risk management.

In the CIS countries there are no universities where trading is studied as a specialty, so you have to acquire the necessary knowledge yourself (self-education or full-time/correspondence courses). It is best to practice the practical skills of a trader on a demo (training) account, which most brokers offer to open for free, without registration.

Who can become a trader

The numerical composition of the global trading community is the main proof of the accessibility of the trading profession to a wide range of people who want to show their abilities in a new trading field.

History knows many examples when traders without special education in economics, finance or mathematics gained worldwide fame.

The main criterion for assessing potential trading opportunities is not diplomas, but the presence of a certain set of personal qualities:

• logical thinking;
• introspection;
• penchant for innovative solutions;
• rejection of evaluation “stamps”;
• psychological stability.

The most famous traders in Russia and the world

The list of the world's top traders is headed by billionaire J. Soros, who regularly appears on the lists of the richest people on the planet. But he is not the only one included in a kind of “Hall of Fame” for traders.

Historical “contributions” to the theory and practice of stock trading were made by:

1. C. Dow - The Dow theory is the basis of technical analysis. Invented the Dow Jones index.
2. D. Livermore - gained fame during the Great Depression in the United States, managing to predict the collapse of markets and earn $100 million.
3. J. Bollinger is an outstanding analyst, creator of the Bollinger Bands indicator. Came to stock trading after working as a television cameraman. For the first time I used neural network models in technical analysis.
4. W. Gann is a developer of technical analysis tools based on the methods of geometry, astronomy, and astrology (angles and Gann grid).
5. L. Williams is the first trader to introduce leverage into trading, the creator of a number of technical indicators, the absolute record holder of the world championship of traders Robbins World Cup (profit was 1100%).
6. B. Williams is the author of a number of trading systems and indicators that are still popular today - “Alligator”, “Three Wise Men”, Fractals, etc. He became widely known after the publication of a series of books on the theory of trading chaos.
7. S. Cohen - has achieved outstanding results as a hedge fund manager (personal wealth over $9 billion). Predicted the 2008 financial crisis.
8. L. Raschke is one of the most famous female traders. Received recognition from the master of trading D. Schwager (review in the book “Market Wizards”). Author of a number of works on short-term strategies.

The short history of Russian traders cannot compete with the trading achievements of world-class luminaries, but talents are emerging:

1. V. Safin is a practicing trader and author of a number of books on technical analysis.
2. S. Bernukhov - successfully trades in markets with different types of assets and conducts teaching activities.
3. A. Rezvyakov - specializes in trading futures on the RTS index, with an average annual income of 30%. In a record year, he managed to show a profit of 1427%.

Books that a novice trader should read

Books remain one of the main sources of knowledge on trading. Most publications by foreign authors have been translated into Russian.

A novice trader’s library cannot do without the classics:

1. “Trader's Encyclopedia” by E. Nyman.
2. “Technical Analysis” by D. Schwager.
3. “Masters of the Market” and “Trading Chaos” by B. Williams.
4. “Elliott Wave Principle” by A. Frost.
5. “Japanese Candles” by S. Nison.
6. “Fundamental Analysis” by L. Kolmykov.
7. "Trading with Dr. Elder" by A. Elder.
8. “Textbook on Day Trading” by L. Borsellino.
9. “The Psychology of Trading” by B. Steenbarger.
10. “Economic and financial risks” by A. Shapkin.

The books are available in electronic form (you can download them for free).

What else to read and watch

Read my articles about the main investment instruments - stocks and bonds. I explain there how they work, how to compare their risks.

Also read the article about an individual investment account. I tell you there how to get a deduction of 13% on this account, even if you don’t invest at all or invest very small amounts from it.

Check out the course “Personal Finance and Investments” from Netology. It is led by professional investor and financial consultant Sergey Spirin. It was he who finally convinced me that making money from trading is a waste of time.

During the course, you will first understand what passive investments are and how they work, and then you will understand the main types of financial instruments, find out how to create investment portfolios from scratch, make changes to them, etc.

If you are not ready to purchase paid materials yet, here is a recording of a free webinar from Ak Bars Bank. It's about investing in ETFs. The bank has other webinars on investments, you will find them on the Ak Bars YouTube channel.

Check out three free e-books from the educational project City of Investors. I read them with pleasure, and Vasily Blinov, who created this site, took a course on investing through IPO in the City of Investors. The materials are very good, everything is explained in clear language.

1. How to become financially independent in 1 year. The book will tell you how to properly manage your income in order to achieve absolute financial independence. This is not at all as difficult as it might seem at first glance.
2. 5 ways to effectively invest 1000+ rubles. The author gives examples of real investments and analyzes them in detail. Although, the word “capital” is hardly appropriate here, because people invested very tiny amounts - from a thousand rubles. From the book you will learn that it is enough to use even small amounts for investment. The main thing is to start.
3. 6 steps to financial security. What steps should every person take to secure their financial future, achieve stability in terms of money and feel confident.

The project also has very cool webinars, check them out:

1. How and where to invest in 2021. Evgeny Khodchenkov, who has been investing for 13 years, will teach you how to choose financial assets correctly and spend only 3-4 hours on it every month. Explains how to create a portfolio with a return of 20% per year. This is not 700% per week from a PAMM account, but it is reliable and stable. The webinar is free.
2. Passive income on the machine 2021. This is a webinar workshop on how to make your first investment and not trust money to scammers. How to choose the right tools to manage risks and receive additional profits through deductions. The workshop lasts ten days. This material is already paid, but relatively cheap - 1,290 rubles.

Types of trading

There are several types of trading depending on the methods of analysis, the assets used and the methods of trading.

Financial

The concept of financial trading can include all types of operations on financial platforms; if we distinguish it as a type, then it is customary to talk about trading assets of stock exchanges (stocks, indices, bonds). The main trading participants are large investors, corporations, and financial holdings.

The algorithm for algorithmic trading was given in the USA when the Securities Commission allowed stock exchange trading on electronic platforms (1998). Thanks to the innovation, the execution time of transactions has been significantly reduced (down to microseconds). Stock traders who began to use the new technique began to be called quantum traders.

Algorithmic trading is based on an automated trading method, where mechanical or automatic trading systems are responsible for executing trades. A special feature of the ATS is the complete elimination of subjective market assessment - all decisions are made by a “robot”. In MTS, a trader can interfere with the work, taking over some of the functions of the trading system.

When developing algorithmic trading systems, historical quotes of an asset or combined data for several instruments are taken into account. The main task of the creators of “robot advisors” is the ability of their “brainchild” to control the algorithm for opening/closing positions, taking into account changing market trends.

To independently develop a profitable trading “robot”, a trader will need special knowledge in programming, but you can also use a ready-made “product” by choosing an assistant for strategic trading priorities (trend trends, scalping, Martingale, etc.).

Internet trading

Trading via the Internet occupies the main segment of the financial services market. For example, the over-the-counter Forex market, operating exclusively via the Internet, has surpassed in liquidity all the classic exchanges of the world combined.

To take part in the auction, you must:

• choose a broker providing online trading services;
• register with him;
• install the trading terminal on your PC (you can use a smartphone or tablet);
• open an account and top up your deposit (there are micro and cent accounts for Forex trading).

To master the first steps in trading, brokers offer beginners the opportunity to work on a demo account, as well as take a training course (usually free of charge).

Getting your first profit

It may seem strange, but working as a trader from scratch without experience at home quite often leads to the first successful transactions. This is due to the fact that, in fact, the price can only go up or down, that is, in each case the probability of a correct forecast is 50%. Therefore, a banal “guessing game” is quite capable of bringing some quick profit, which will just as easily turn your head, cause a feeling of euphoria and unreasonable self-confidence, and this inevitably ends badly. As experienced traders say: “It’s not difficult to make money on Forex, but it’s difficult to maintain profits.”

Therefore, at the beginning of your career you need to focus on stability. Even an increase of 5-10% to the deposit per month is much better than a one-time random income of 100%. When starting your journey, you need to remember the sad statistics, according to which the majority of those who achieve success lose more than one deposit at the beginning of their journey before achieving stable results.

Features of online trading

Online trading allows you to use almost all exchange trading tools - select any financial assets, analyze the market situation based on historical and current quotes, use margin trading, replenish your deposit and withdraw profits, use manual and automated trading methods, and use the advice of professional traders.

A prerequisite is the presence of a stable Internet connection and an agreement with a broker.

Advantages and disadvantages

According to statistics, 95% of traders work remotely from the main exchange platforms, which proves the global trend in favor of online trading via the Internet. Comfortable conditions (the trader himself chooses the place and time to work), the ability to choose a financial platform and broker (you can work with several at the same time), minimal costs for technical equipment - these are the factors that determine the positive attitude of Internet traders.

In contrast to the obvious advantages, we should not forget about the potential threats of online trading:

• high risks of trading with leverage;
• poor quality internet broker service;
• imperfect legislation in the field of protecting the rights of traders.

Advice for dummies from an experienced trader

I have been associated with stock markets for almost 7 years now. Of all the above methods, in my opinion, the best is the one where you do not risk real money. Why do I think this? I just believe only in numbers, not opinions.

The statistics are that there is a 99% chance that you will lose money in the first year, despite all your talents and intelligence. Whether you like it or not, you should be patient because trading is a highly competitive business.

In the first stage, your task is to practice and learn as many techniques and strategies as possible. This will help you identify what is right for you and effective in the current conditions. Working methods have already been repeatedly published on this site under my authorship. However, 50% of success comes down to following the rules and psychology, so you need to find the most comfortable way to work with assets.

My trading statistics for May 2021 are at the time of writing.

I recommend reading at least about:

— risk management; — graphic figures; - candle models.

Types of software for online trading

A variety of software has become an integral part of effective online trading. The software is used to create trading terminals, strategy testers and templates, and robot advisors.

Software for beginners

Novice traders, due to lack of knowledge and experience, prefer to use automated systems as much as possible. Their arsenal of trading methods is dominated by robot advisors, ready-made strategy templates and programs for receiving trading signals, and the popular MetaTrader 4 as a trading platform.

Rice. MetaTrader 4 terminal window

The trading process is helped by mastering training programs that are equipped with functionality with examples of transactions, terminology, principles of operation of exchanges, and other introductory materials.

Software for professionals

Programs for professional traders are aimed at deep analysis of the market using methods of fractals, clusters, quanta, volumes, etc. ATS and strategy testers are used as auxiliary tools in the preparation of individual trading tactics.

Examples of software for professional trading include the platforms ATAS (Order Flow Trading company), SaxoTraderGo (broker Saxo Bank) and trading engines, for example, QScalp for high-frequency trading in short-term strategies.

Rice. SaxoTraderGo terminal window

Automated trading software

Programs for automatic trading are used in all types of markets (stock, Forex, cryptocurrency) and occupy more than 70% of all transactions. Such software may be based on analytics based on technical or fundamental data.

Automated trading software features include:

• market analysis according to the conditions of the features and trading strategy used;
• automatic opening/closing of transactions, with placement of stop orders according to specified conditions;
• risk management - limiting the number and volume of transactions in the event of unfavorable price movements.

To create a mechanical trading system yourself, you can use a special terminal TSLab (trading systems laboratory), which allows you to develop, test and optimize trading robots even without knowledge of programming basics.

Main advantages of TSLab:

• an interface that allows you to compose a script using ready-made blocks;
• Russian-speaking technical support;
• the ability to use robots on different trading terminals;
• built-in risk module that insures against high risks (transactions at inadequate prices, an excessively large number of open positions for one asset) and technical failures.

It should be understood that there is no perfect software for automatic trading - market conditions are constantly changing and require regular adjustments in the algorithms that were originally included in the program.

Examples of independent trading

There are two types of trading: at market price and pending orders. Next, we will take a closer look at each of these methods of trading on the stock exchange.

Example 1: Market Execution

Market execution means that the trader opens his trades at the current price on the exchange. That is, he immediately enters the market, performing an operation to buy or sell a trading asset.

Example 2: Pending order

If the market execution of orders is clear, then with a deferred execution, the trader places his trading orders at the price he specified. In this case, there is a possibility that the price movement may not capture the placed order and, accordingly, it will not be opened. There are orders for breakout - stop pending orders (continuation of price movement) and rebound - limit pending orders (reversal of price movement).

What is social trading

Social trading is included in the “package” of options that make life easier for a novice trader. In essence, we are talking about one of the forms of trading - passive trading, where clients are offered the opportunity to use the experience of professionals to make one or another trading decision by copying transactions.

Unlike ATS, the role of advisor is performed by real traders who not only recommend, but also participate in the trading process. Naturally, this format of cooperation has a high degree of trust among users of “tips.”

Social trading scheme

The social trading service operates according to a simple scheme: a trader selects a “leader” (it is possible to analyze his activities over a long-term period) and subscribes to copying his transactions (a paid service).

Then everything happens automatically - the system connects your account to the trading platform, transactions will be opened in compliance with all parameters - asset, lot size (scaled to the trader’s deposit), stop order levels.

Social trading services can be used to trade on any financial markets.

Top best platforms for social trading

The social trading service is not available from all brokers, so the service has been developed on specialized platforms (you must register to receive the service).

In the ranking of the best:

1. Zulu Trade is one of the world's largest platforms. Works simultaneously with several brokers, offers interactive communication between traders through social networks.
2. eToro is a broker with a developed social trading network. In demand among beginners, because... offers a number of training programs, a fully functional demo account and a user-friendly terminal interface.
3. Tradeo is a specialized social network for traders. Has the function of simulating transaction copying.
4. Who Traders - the platform from FINAM offers social trading using a variety of assets, incl. leading US exchanges. Registration cost is $10, subscription to connect to the accounts of 10 traders is $50. Unites more than 1 million clients.
5. ATON Space is a platform for “moneybag” traders (access with a minimum deposit of $100 thousand).

Advantages and disadvantages

Social trading will be an excellent assistant for new traders, because... does not require immersion in analytical market research, provides invaluable practical experience, and minimizes risks. The price of the service is comparable to the broker's commission.

There is also a flip side to the trading “coin” - the effect of getting used to ready-made trading solutions slows down the formation of an independent trader.

Transaction costs

One of the main reasons many traders fail is that they do not pay attention to the cost of transactions. And this can be the difference between a profitable and a losing trader.

Imagine that you have a deposit of $10,000. The transaction cost is $10 per trade (buy and sell). You are a day trader and place 500 trades per year. Some simple math will show that you will need a return of 50% just to break even.

But what about trading on the daily timeframe?

You have a deposit of $10,000. The trade cost is $10 per trade. You place 50 trades per year. Now you just need 5% to achieve. breakeven. And that's a big difference.

Now do you understand how transaction price is a killer of traders? If you want to increase your statistical odds, trade less.

Ways to gain trading knowledge for a beginner

The pilgrimage to the online trading market has also forced the market for services aimed at serving a rapidly growing clientele to become more active. One of the most popular trading segments has become the education sector.

Newbie traders who got burned while trying to conquer Forex and other exchanges without appropriate preparation, but did not give up, made the only correct conclusion - they need to “arm themselves” with knowledge.

The first to respond to the request were brokers who were not going to lose clients. A “trading training” section was promptly included in the set of trading conditions, and in most companies the basic course is offered free of charge (at the request of clients, various forms of classes can be selected).

Self-study of trading basics

Mastering the intricacies of trading is not an easy task, but it is not at the level of mandatory lectures from professors - this is confirmed by the experience of successful stock exchange players who do not have diplomas in the trader specialty.

Independent training of a trader may well compete in effectiveness with training “under the supervision” of professionals for two main reasons:

1. On the Internet you can find enough information on the “material parts” of the item.
2. The role of teachers is most often played by theoretical traders who have never risked their money and are unable to convey to students the state of “market nerve” - a feeling without which one can only trade on a demo account with virtual money.

Online training

This type of training is offered in the form of webinars and video courses on trading, and has its advantages:

1. There is no need to waste time traveling to the place of classes.
2. The training program is systematized.
3. It is possible to work in the form of “questions and answers”.

Attending in-person classes

Hospitality lovers will have to look for specialized trading courses, because... brokers rarely have their own representative offices and organize on-site training. In Russia, only some bank brokers provide such training.

Full-time training is often aimed at an advanced contingent of traders, where tasks from the “highest aerobatics” of trading are considered, and classes are taught by practicing traders with a name, sometimes even worldwide.

How to make a profit every day?

What is needed for this? Best trading strategy? Risk to reward ratio? Profitable trade ratio? No. Want to know the secret? In reality, it is the frequency of your trades.

If you want to make money every day, you must have a high frequency of trades. The law of large numbers should work in your favor.

Imagine that you have a special coin in your hands. If it comes up heads, you get $2. If it's tails, you lose $1. However, you can only toss a coin once a day. Do you think you can make money every day? Of course not.

Why? Because in the short term, your coin toss results will be random - you can get losses many times in a row.

However, if you could flip your coin 1000 times a day, how would the outcome change? Now you'll roughly get about 50% heads and 50% tails after 1000 flips - meaning you're guaranteed to make money every day.

So the point here is not your win rate or risk to reward ratio, but your trading frequency. This concept also applies to trading. If you want to make money every day, you must have a high frequency of trades. But is this possible for a retail trader?

In my opinion, the odds are absolutely against us here. Short-term trading is dominated by high-frequency robotic strategies, and only they have a chance. Read about the hedge fund Virtu Financial, which had only 1 losing day in 1238 days - https://www.businessinsider.com/virtu-hft-only-one-losing-day-2014-3?IR=T.

If you have a statistical advantage in the market and have a higher frequency of trades, your advantage may end within a shorter period of time. If you have a lower trade frequency, it may take longer for your statistical advantage to be realized. However, you will be able to accumulate income over time, experience less stress, and have the freedom to do what you love.

For most retail traders who trade manually, this means that you will not be able to make money trading every day. However, this does not mean that you cannot remain in the black every month or every year.

How to complete trading training for beginners: step-by-step instructions

Beginning traders should not try to immediately “take the bull by the horns” - this applies to both trading and the learning process. The best option is a “step by step” tactic.

Choosing a learning method

Of the training options listed above, you can choose any one or even combine several if you have the desire and opportunity. The only “hard” connection is the mandatory study of the basic trading school.

Mastering the market and the main concepts of stock trading

A trader needs to start with the basics:

1. Master the trader’s “primer book” - terminology, without which further training is impossible (for a beginner, such concepts as swap, margin call, take profit, gap, trailing stop, ECN account, etc. are a secret “closed seal”) .
2. Understand the types and mechanisms of functioning of the main financial platforms - who, where, when and what trades.

Studying the trading terminal

The trading terminal is the main tool for conducting operational activities, so a trader must thoroughly master all its functionality and be able to quickly carry out the necessary manipulations (sometimes the issue of making a profit/loss is resolved in a few seconds). Practical skills are acquired on a training account.

Brokers’ trading conditions must contain information about the type of platform offered, which will allow you to first familiarize yourself with its capabilities and determine whether it is suitable for you (beginners are not recommended to use “overloaded” terminals and opt for the universal options of MetaTrader - version 4 or 5).

Learning the basics of risk management

Issues related to risk minimization are united by the concept of “money management trading” and are included in the group of knowledge on which the outcome of not only a specific transaction, but also the entire deposit depends.

Common truths, ignoring which leads to fatal losses:

• excessively high lot size;
• opening many orders simultaneously for different types of assets;
• trades without setting a stop loss;
• attempts to hold unprofitable positions in anticipation of a price reversal.

The basic rule of trading is that the total size of open transactions should not exceed 2–5% of the total deposit amount.

Introduction to the basics of fundamental analysis

Common types of analytical studies of market fluctuations are fundamental and technical analysis. Despite the ongoing debate about their priority, a trader should master both.

Fundamental analysis is based on data from economic indicators (published in the economic calendar on brokers’ websites). Relevant for traders working on stock exchanges (in Forex it is more often used for forecasting long-term strategies).

Study of technical analysis

Technical analysis is based on the study of graphical trading models, which include market research methods using various indicators and patterns (figures). The tools used are the set that is equipped with the trading terminal.

Opening a demo account and applying the acquired knowledge in practice

A training account (demo) allows new traders to acquire practical trading skills and test individual trading strategies. Work on a “demo” can be carried out in parallel with trading on a real account, without which it is impossible to learn how to manage emotions and risks (responsibility for the loss of a virtual and real deposit are two big differences).

How to build a portfolio?

There are three main investment parameters: profitability, investment period and risk. Accordingly, each portfolio is determined by the relationship between these factors. Here, as in the old joke: choose any two. In the chart you can see the ratio for different types of investors.

I think the most optimal ratio for investing: diversify - invest at least 40% in reliable instruments, 10% in high-risk instruments, distribute the remaining 50% based on liquidity and your main strategy. The optimal investment period is up to three years (including due to tax laws). The easiest option to start is to open an IIS (individual investment account, we will talk about it later).

Where to start as a trader

When deciding to start trading, you need to decide on several key points that are associated with choosing a broker.

Firstly, on what platform and what assets to trade. For example, if the choice fell on binary options, then you should select a brokerage company that specializes in this instrument.

Secondly, acceptable trading conditions.

Here it is important for a trader to consider:

• minimum deposit size;
• leverage range;
• type of trading terminal;
• size and type of spread;
• volume and “step” of the minimum lot;
• set of available financial assets;
• order execution speed;
• the ability to use automated trading;
• conditions for depositing/withdrawing funds.

Choosing a broker

The class of a brokerage company will become one of the determining factors in the effectiveness of trading. Competition in the brokerage services market is very high, but this factor does not always influence the quality of service. Information about unscrupulous brokers regularly appears on trader forums, which makes you think about the criteria that a reliable partner must meet.

Guidelines for choosing can be:

• length of service of the company;
• availability of a license from a well-known financial regulator (for example, the British FCA, the German BaFin, the American SEC). In the Russian market, control is exercised by the Central Bank and the Center for Financial Markets, which issues a certificate to members of this organization;
• presence of representative offices in the country where services are provided;
• customer service adapted to local conditions (multilingual website, technical support);
• rating published on independent resources;
• traders' reviews.

Rating of the best brokers for new traders

More than 200 brokers work on the Russian Internet trading market. Many have 10 or more years of experience, licenses from respected regulators and positive customer reviews.

The top list, according to estimates from various specialized resources, includes:

1. Alpari. 20 years in the online trading market, min. unlimited deposit, MetaTrader trading platforms, leverage up to 1:1000, more than 100 trading instruments. FCA regulator.
2. Forex4You. Operating since 2007, min. unlimited deposit, leverage up to 1:1000, spreads from 0.1%, trading platforms MetaTrader, Web Trader, financial assets - currency pairs, shares, cryptocurrency. FSCM regulator.
3. AMarkets. More than 10 years of experience, leverage up to 1:500, MT4 trading platform (there is an application for portable devices), financial instruments - currency pairs, precious metals, shares, CFD contracts. FCA regulator, MiFID member.
4. InstaForex. Registration in 2007, min. deposit - $1, leverage up to 1:1000, market spreads from 0%, MT4 trading platform, wide range of financial. assets for trading.

Opening a trading account

When a partner broker has been identified, you can proceed to the registration procedure and opening a trading account.

On the company’s official website you need to fill out a form asking you to indicate:

• surname, first name;
• passport details;
• year of birth;
• residential address;
• citizenship;
• phone, email mail.

Gaining access to start trading

After processing the data, the broker sends an email. email a link to activate your account, which opens access to the trader’s personal account. Some brokers ask you to go through a verification procedure - you need to send a scan of your identification document.

Having agreed on the formalities and signed a brokerage agreement (can be done electronically), the trader has the opportunity to register the selected trading account, replenish the deposit and start trading.

Download and install special software

All operational activities are carried out using a trading terminal provided by the broker. Its installation is extremely simplified and takes a few minutes (does not require additional software). You can download the trading terminal using the link on the broker’s website (most terminals have applications for installation on mobile devices running Android and iOS).

To form individual strategies, you may need tools that are not included in the basic equipment of the terminal (for example, proprietary indicators, templates and strategy testers, trading robots). In such cases, additional software tools are used.

Analysis of information about exchange rate dynamics

The trading terminal allows you to analyze the market situation, thanks to the flow of price quotes that are reflected online. The forecast can be built using graphical research methods - using indicators, levels, channels, trend lines, patterns, as well as based on information about changes in economic indicators - fundamental analysis.

Generating a request to open a deal

Positions are activated based on trading signals, the truth of which is determined by one or more analytical methods. Professional traders are guided by data obtained as a result of complex analysis - the generalized values ​​of technical and fundamental analysis are taken into account.

Fixing the financial result of the transaction

Closing a profitable or unprofitable position can be done manually or automatically (if stop orders are set - take profit, stop loss). When for some reason it is not possible to manage a transaction through a trading terminal, the trader can give the appropriate order to the broker by phone (a mandatory option that must be specified in the contract).

Several ways to start trading

If you just opened the terminal and made your first trade, then congratulations - the approximate chances that you will save your money and make a stable profit are only a measly 1%. Don't think I'm trying to scare you, but the statistics don't lie.

The pyramid was built on the basis of a foreign study by Barber, Lee, Odean in 2010.

What can a full-time teapot do in trading:

depositing real money into a classic account and testing yourself is the most popular and ineffective way to start a career; trying your hand at a demo account is a relatively good option, but it is often misleading when a trader manages to decently promote a virtual deposit without any strategy; try your luck with low risk on cent accounts - this is closer to the truth, here at least you won’t lose so much money, while gaining an emotional experience; taking part in competitions for traders is one of the best ways to start trading without any capital; Going to learn from a guru and forget about real deals is generally a good, but not ideal, option.

Obviously, each point is complemented by reading books, studying educational videos and other information about trading. Without this, you will be completely “swimming in the ocean on a flimsy raft.”

Trading Strategies

The effectiveness of trading is determined by the choice of the optimal trading strategy, which depends on:

• deposit size;
• trader skill level;
• time devoted to trading (main job, additional income and other factors).

Scalping

A favorite trading strategy for novice traders that gives quick results. It is based on high-frequency trading - opening a large number of transactions in short time intervals. Profit goals are limited to a few points in the hope of accumulating a decent positive balance due to the number of transactions.

Trading is carried out on TF M1, M5, with any financial assets (preferably with high volatility). Scalping uses a variety of forecasting tools, primarily technical ones.

The main disadvantages of this trading trading strategy are the high emotional load and a large number of false signals caused by “market noise” on small time frames.

Intraday

Intraday trading can be a variant of scalping or a more cautious approach in which one or two trades are opened during two trading sessions (European and American). Compared to “pure” scalping, intraday trading is distinguished by a more balanced approach to analytics, lower risks and uncritical psychological pressure.

Intraday strategies allow a trader to work with a small deposit and focus on several proven patterns of price movement - opening/closing of a trading session, changes in volatility for specific assets.

Medium term

Medium-term trading is designed for time intervals from several days to several months and is considered the “golden mean”, because free from the disadvantages of short-term strategies and uses the advantages of long-term ones:

• the main TF for analytics is H1 (does not “suffer” from inexplicable price jumps);
• any financial assets (without reference to the level of volatility);
• a large selection of forecasting methods;
• profit goals of 100 points or more.

Long term

Long-term trading is more like investing than speculative operations:

• trading takes place on large TFs - from H4 and above;
• trend and channel strategies are used;
• profit goals reach several thousand points.

A prerequisite is the presence of a sufficiently large deposit that is able to “reflect” the threat of significant corrections.

Prop trading

This type of trading involves trading carried out by financial companies exclusively at their own expense. The income part is formed by profits from transactions (no commissions or other sources of earnings). Stocks, currencies, bonds and derivatives on them are used as trading assets.

A trader who trades for a prop company uses its financial capabilities and shares the earnings. The amount of a trader’s income (pay-out) depends on the results of his trading and personal financial participation (can range from 10 to 95%).

Technical

Technical trading is based on assessing the market using graphical analysis - indicators and non-indicator methods, for example, Price Action (pattern forecast). Technical analysis is indispensable for short-term strategies, when price fluctuations have virtually no correlation with macroeconomic indicators.

Fundamental

For traders working in the stock market and preferring long-term planning, it becomes mandatory to study the basics of fundamental analysis, which is based on market patterns based on economic and political characteristics that can affect market conditions:

• GDP data;
• inflation indicators;
• unemployment rate;
• changes in Central Bank interest rates;
• elections of presidents and parliament.

Swing trading - swing trading

Swing trading tactics are based on the characteristics of price behavior along a trend and can be used by traders who are proficient in wave analysis. The calculation is made to open a trade in the direction of the trend when the correctional wave ends.

It is recommended to trade on medium-term TFs and be sure to duplicate the trading signal with several analytical tools, for example, rely on current support/resistance levels.

Moment

The essence of this trading method of trading lies in the name - to use the moment (it’s difficult to call it a strategy, rather a tactic). A trader looks for profitable trading signals for an asset using different timeframes. If such are identified, then transactions are opened at once on all time intervals. In fact, all types of trading can be used - from scalping to long-term trading.

Where do traders trade?

If you choose to trade securities, you will be speculating in the stock market. If you choose a currency, then on foreign exchange or Forex. If raw materials, then on commodity raw materials.

Most traders speculate in the stock and foreign exchange markets. Securities and currencies change in price faster than commodities, so trading them is more profitable.

Today you don’t need to go to the stock exchange to make deals. Everyone trades easily via the Internet. You need to download a special program to your computer - a trading terminal and start earning money.

You can trade:

1. At home.
2. At the broker's office.

There are companies like United Traders that not only train traders, but also provide them with office workspaces. Once you have learned it, you come to the office every day, sit down at the computer next to other traders, open the chart and work.

How to make money from trading: expert advice

The primary task of a novice trader is not to “lose your deposit.” If this stage is completed successfully, then you can think about making money.

Pros recommend focusing on the following “pillars” of trading:

1. Don't trade without a strategy.
2. Do not rush to increase the volume of transactions and always adhere to the rules of money management.
3. Avoid stress and keep your emotions under control.
4. Don't stop practicing and learning new trading strategies (use a demo account).
5. Increase your knowledge in technical and fundamental analysis.
6. Follow your trading plan.
7. Analyze your actions.

How to increase your capital?

If you earn an average of 10% per year on a $5,000 account, then after 20 years you will have $33,637. This figure will probably seem too small to you.

However, if you trade part-time, you have a job and can fund your trading account regularly. Let's deposit $5,000 into your trading account each year (which is less than $420 per month).

Again, you earn an average of 10% per year with an initial amount of $5,000 and add $5,000 to your account each year. After 20 years, you will have $348,650. It looks much better now.

But what if you can earn 20% per year? You earn an average of 20% per year on an initial $5,000 and deposit $5,000 into your account each year. After 20 years, you will have $1,311,816.

Will $1.3 million give you financial freedom? Will 1.3 million allow you to retire and have the freedom to do what you love? Will $1.3 million give you peace of mind knowing you can better meet your family's needs?

In other words, if you have a starting capital of $5,000 and can add $5,000 to your account every year, then you have everything you need to create serious wealth.

Real reviews

Alena D.

“Modern Forex covers almost all the traders’ “wants” - trade either gold or Apple shares.”

Gordey

“I studied 3 courses for traders, from basic to advanced level, but only personal practice on a real account gives real effect.”

Phil

“Brokers cheat at every step, so at the first trading “signal” you should leave without regret - it will be more expensive to seek the truth in trading.”

You are not a trader. Are you a salesman

If that's true, then the hedge fund guys are the best salesmen in the world. They collect billions of dollars by managing other people's money and make a profit without losing money. At the same time, we call them real traders.

So let's stay realistic. Think about what you want to get from trading? Why do you want to trade? What is your ultimate goal?

• Financial independence.
• Escape from boring work.
• Peace of mind and an alternative source of income.

In other words, trading is just a means to an end. Therefore, only you decide how you will achieve your goals. Faster or safer. With less or more risk. It all depends on you.

Attitude towards mistakes

The only way to gain invaluable experience is constant practice, which consists of making mistakes and analyzing them. Of course, you can thoughtfully study the development path of other traders, but, as a rule, each of us learns lessons only from our own full-fledged cones. Therefore, initially you should take the right attitude, preparing for shocks, and not leave the market after a couple of mistakes, as many people do in general. They form the deplorable statistics according to which only 5% of all beginners will eventually develop into experienced traders.

Step 5: It's your job

Brushing your teeth, drinking coffee, petting a cat, opening a deal – these are phenomena of the same order. You do this unconsciously, automatically. You repeat actions that you are used to repeating too many times to even remember.

Your minimum amount per trade is now disproportionately higher than when you started. The deposit is more than enough. Money management has been around for a long time. You have an absolutely violet perception of successful and unsuccessful transactions. A month in the negative is just a reason to sort out the mistakes again. This is a normal workflow. Nothing special happens. The market has nothing to surprise you. You've already seen everything.

You look at beginners on forums who are looking for the best strategy and signals, are worried about a lost deposit of 300 rubles, are discussing indicators and robots, are waiting for help, want to be shown “how to trade” on Skype. They fuss, jump, scream, make noise and be stupid.

None of them have patience, nor the slightest understanding of where they are. There is no established system. No effort. No diligence. No discipline. Some, due to clip thinking, are no longer able to read a basic article, much less draw conclusions from it. Nobody has been reading books for a long time. Doesn't know English. They all have no... prospects. This is just fodder for brokers.

Smiling, you remember yourself. Once upon a time, a long time ago, you were exactly the same, an absolutely hopeless and naive idiot.

The questions you are asked immediately show what stage a person is at. You know - it is useless to explain that there is no best indicator or indicator-free strategy. The person asking has not yet passed the necessary stage, he will not understand and, most likely, will never understand. Market statistics are against him. Calmly repeat the same thing:

• in trading, everything is individual : there are no and never have been the best markets, currencies, strategies, indicators, expirations, timeframes;
• there is no need to use the words “won” and “lost”, trading is not a game;
• there are no schools or gurus that can help or make a fairy tale for you while you sit and wait for something;
• no need to worry about lost deposits;
• trading can break you;
• you are not special, exactly the opposite;
• it is critical to learn how to manage money, risks and time;
• There are no guaranteed working signals, robots or copy services, paid or free.

People listen to you and sometimes even agree, nodding their heads. After which they continue... to do absolutely the same stupid things. It's like they're deaf or in another dimension. It's as if they completely ignored everything. But you understand them - after all, it was absolutely the same with you. They hear, but they just... don't understand. They do not perceive what they have heard. There is a gap between understanding and awareness. It’s just that their thoughts and emotions are many times louder than any advice. They lack the understanding of thousands of hours of practice. Most will never understand.

The market is ruthless. Thousands of people of any gender and age who are losing money fly past in a blurred background; you cannot distinguish their faces. They are the fat for the market engine, they simply perform their function by feeding liquidity to brokers. The same one that you take yourself.

Dozens of people are beating you on telegram. You friendly and calmly continue to repeat the same thing to everyone, then it will get boring. You know - they will not even reach the second stage, few will reach the third, and a few will reach the fourth. You are not bothered by hundreds of identical questions. You have long since created a website or forum where you answered them, and then went into the shadows.

You have plenty of free time. Trading rarely takes more than an hour a day. Now there are a lot of interesting things in your life besides charts.

On the other side of the rainbow

You have long had your own social circle in which experienced traders communicate. You will learn that trading is a very small world and everyone knows everyone. After all, there are few of them. Sometimes you meet them in person, sometimes in different countries. Nobody brags about their cars, houses and apartments. This is considered bad manners. You are measured by charitable contributions to orphanages and nurseries. You are market veterans, covered with ugly scars that have gone through many years of pain of defeat and the exhilaration of victory. You joke and laugh, remembering what happened to the franc last month.

Sometimes you remember another guy who went too far, succumbed to greed and lost an amount that would have been enough for someone to last his entire dull life. Someone drank himself to death, someone became a drunkard, someone died on the sidelines of life. Someone committed suicide. Someone killed his family before this. This is trading, it happens here and not like that.

Sometimes there is another chat in which there are promising guys who are really ready to learn, and whom you occasionally want to help. Ordinary trading forums and chats are not interesting to you - there are only those who are forever stuck in the second stage. It’s very rare that you come across a truly interesting, promising person with whom you can communicate. Everyone else will be discussing the same issues in circles for years from the first and second stages. Time after time, again and again. They will randomly go through indicators and Googled strategies. They cannot get out of this vicious circle.

Trading has long been a routine. You build up momentum very smoothly. You are not chasing money or specific numbers - you are only interested in stable profits and minimizing drawdowns. Your trading method is polished every day. Your trading is a business. He's not perfect. The ideal does not exist and will not exist. Never. This is the road to perfection, and you understand that it will take your whole life. But this does not bother you - you have long understood what the market really is.

You don't brag about your income. You don’t tell anyone how much you earn and what you do. Everyone earns something, that's life. Trading is just like any other job, and money loves silence.

It is no longer only currency transactions that make up your income. You've mastered everything a long time ago - stocks and funds, indices and metals, cryptocurrencies and option spreads. At the same time, we started a business, maybe it’s a cafe for my wife, maybe it’s a hotel, or maybe it’s a car service center. You actively invest in residential and commercial real estate. You have realized your dreams of a house by the sea and an apartment with a cozy and soulful renovation. You look at the passing clouds, the waves rustle and you feel peace in your soul.

The neighbors don't know what you do. There are almost no friends left from your past life, your social circle has changed dramatically. The market can't hit you anymore. It becomes nothing more than an ordinary element in your business structure. You spend a year without opening the terminal, just to relax and enjoy life. You travel a lot and often.

All this is just your job - and you know that you will continue to do it in old age. Now this is your life.