The financial industry can seem complicated and daunting for those that are not familiar with the terminology, but once you understand the basic terms and foundational concepts it’s actually quite easy. The rise in mobile banking and commission free brokerage apps like Robinhood has also made it easier than ever to place your first trade! However, without taking the time to learn about the associated risks, many eager traders fall victim to traps set by more experienced traders.

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Understanding the basics

Before making your first trade, it’s a good idea to take a moment and familiarize yourself with the basics of technical and fundamental analysis - this will give you insight as to when to buy or sell a stock and how to avoid bull and bear traps. You should also familiarize yourself with different order types, ensuring that your orders not only get filled, but get filled accurately. Little details like these make a huge difference in the price that you pay and can be the difference between a winning or losing trade.

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What is trading?

Trading involves the buying the selling of financial instruments on these markets with the goal of making a profit. These instruments come in a variety of forms, including a stock (a share in a publicly traded company), a bond (often issued by the government), and stock options (or equity option) etc. Due to the complex nature of the economy, and financial markets in particular, there are unique strategies that can be applied to every market and circumstance. Contrary to popular belief, trading is not about luck but about learning these strategies and when to apply them.

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educate yourself

The financial markets, the technology behind them, and the state of the economy is constantly evolving. The best traders in the world understand this and subscribe to a lifetime of learning. However, there is no shortage of beginner friendly resources available should you want to start your journey. The Marketmaster course is perfect for newbies because it takes a step-by-step approach to trading and clearly explains everything from the basic financial terms to how to place your first order.

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master risk management

One of the key concepts throughout the Marketmaster course is understanding and becoming comfortable with risk management. It cannot be understated how important this concept is and how impactful it can be to your trading performance and your mental health. Every trade carries with it an inherent level of risk, but being able to analyze and effectively assess each trade can drastically reduce any downside risk. If you find that investing makes you fearful, anxious, or you’re not sure where to start, you should consider registering for Marketmaster course today.