Complete Guide to Basic Trading, Tips and Strategies for Beginners
Rancakmedia.com – We will try to review a complete basic trading guide for beginners what and why trading is done.
Trading/trading stocks can be a very rewarding experience, but it also comes with some risks. The good news is that trading stocks doesn't have to be difficult as long as you know what you're doing and how to manage your money.
Complete Guide to Basic Trading for Beginners
In this article, we will cover the basics of trading for beginners, tips for successful trading, how trading works from start to finish, and more! If you want to learn about trading in detail so you can trade on your own or just for fun, keep reading!
What is trading?
Trading is the buying and selling of securities or currencies with the expectation that they will provide an income, profit or other positive result. Stock trading can be profitable if you know what you're doing and how to trade wisely online.
What do I need for trading?
To start trading successfully, there are three things you will need – an account (or broker), some money to invest, and knowledge of investment strategies. The good news is that this process doesn't have to be difficult as long as you understand how trading works from start to finish and manage your money well!
How does trading work?
Trading involves buying at one given price point rather than selling later for more than the initial cost. To make sure trading goes smoothly, use a broker
There are many trading strategies, but for the sake of simplicity we will focus on stock trading. Stock trading is nothing more than buying low and selling high through trading shares in companies with or investors brokers other.
Types of traders
Some people trade stocks for the sake of getting rich quick while others do it as a real job. Each type of trader appeals to investors differently and is based on a variety of methods. Understanding your personal trading style can help make a choice finance who are smarter.
Fundamental traders
Fundamental traders are traders who observe market trends and data about stock values to predict future price movements. Fundamental traders often make mistakes because they rely on more than numbers to provide their predictions. This type of trade can be riskier, but also offers greater rewards when done correctly.
noise traders
Noise trader may sound strange as an investment strategy because it involves no real analysis at all. Noise traders are those who will buy or sell stocks whenever they hear good or bad news about a company's performance or a change in management. For example, when a merger announcement comes out for two companies, the two investors could have completely different reactions based on what type of industry each company operates in.
How to start trading
Choose an online broker To start trading stocks online, you will need to open an account with an online broker. Set a budget and stick to it! Don't invest in the stock market with money you can't afford to lose.
- How long have I been investing?
- How much do I want to invest per trade?
I'll use the $500 as an example for the following calculations:
If your broker charges you $25 in commission, then you are charged 0.005% (0.05%) on each transaction – meaning every time you buy or sell stock with this account, they charge half of one percent (0.0050%). So, if we make our average monthly buying and selling transactions equal to 125 ($250), then at the end of 30 months, assuming there was no value gain/loss on either side during that period, we would pay a total commission of around $75
Trading can be done from home
Currently, trading, both stocks, forex, commodities, futures, or options, can all be carried out online. Because there are developments in online trading technology too, you can make income from home. It's enough just to use a mobile phone such as a netbook, computer, tablet, even a mobile phone, without the need to go out.
Because there is an online trading feature, it will make it easier for you in many ways. The online trading program, in addition to providing price information facilities, contains information on market research, both for stock or forex instruments.
Trading can be easier with the auto trading feature
Trading is also an easy activity to carry out because there is an auto trading feature provided by the broker. This feature helps you trade shares based on orders automatically.
You also don't need to be bothered by constantly monitoring the price movements of your trading instruments, either stocks or forex. In this auto trading feature, you can pair the buying price and the selling price if you have reached a certain price. You can set buy and sell prices according to your trading plan.
Fairly cheap trading fees
With online trading, this task also has the advantage of being inexpensive. In online trading, trading systems are fully automated.
You have complete direct management as an investor, so you don't have to pay additional fees to the broker. The fees charged for security and safety are also not as big as when compared to transacting with broker solutions.
Flexible trading time
There are times when you're sick of working as a worker, and you're looking for ways to increase your income past your basic income.
One of the ways you can do this is by choosing the trading line as your part-time task in between busy working hours.
The forex market and products are energetic 24 hours a day. If you choose forex or commodities as a trading tool, then your trading hours can change flexibly. However, it is different from supply trading. New stock exchanges are opened according to business hours. In this situation forex is amazing.
Trading can give you extra money
It's undeniable, trading really guarantees additional money, it can also make someone abundant quickly.
Trading is of course a simple method of earning money, but if you want to be an investor, then you have to understand the ins and outs and by means of the tools, you are trading.
If you want to find forex trading, then you have to understand the tools of forex with the ins and outs. Also with supplies. If you want to find supply trades, you also have to understand the ins and outs of supply tools.
If you currently have sufficient knowledge and understanding, you can start trading for additional income.
Trading Learning Can Be Started with a Demonstration Account
For stocks and forex, trading can be started with a demonstration account at first. This demonstration account serves as a knowing tool before you dive right into the world of trading.
Today, many brokers and monetary media, especially in the forex and supply market, offer demo trading account simulation centers, which allow us to quickly register and try demo trading on a demo account, the money used is only claimed as money.
To try the demo account you don't need to have any cash, because you can enjoy the demonstration completely free and until you are satisfied.
Nevertheless, be careful. Trading is not without danger. Also if you believe you can make modest income on demo account it doesn't mean you can do the same with real account. This is because the demonstration account and the actual account have some technological and mental differences.
Choosing a Trading Tool
Trades can be made in a variety of financial investment tools. In choosing a trading tool, there are several requirements that must be met to ensure that you as an investor can work comfortably:
- Pay attention to the liquidity of the trading tools. Tools that have high liquidity, will be traded frequently and easy to resell.
- Pay attention to changes in the cost of trading tools. Trading tasks are tasks that take advantage of changing costs to earn income. If the costs are much more volatile, the higher the earnings opportunity, the higher the risk.
- Note the benefits of trading tool levels. There are a number of specialized trading tools brokers that offer to avail as much as 1:100. the higher the degree of utilization, the higher the commercial opportunity obtained, besides that the higher the prospective danger.
- Pay Attention to Initial Funding Advances. While trading tasks have always been considered expensive, now, trades can be completed with very cheap funds. Supply trading can also be started with only IDR 100,000, while forex trading can currently be done with only US$10.
The following are examples of trading tools you can choose for your trading assignments.
Stock Trading
The first is stock. Shares are proof of ownership of a company. Companies that need capital will sell some of their shares on the Stock Exchange, to be subsequently traded according to the trading process that runs on the stock exchange.
In Indonesia, stock trading is regulated by the Indonesia Stock Exchange (IDX). Stock trading on the IDX also follows the terms and conditions of trading decided by the IDX, such as price fractions, trade jams, unit lots, and several other matters relating to stock trading in Indonesia. There are clear provisions and a variety of guarantor agencies to make stock trading in Indonesia attractive.
Trading Forex
The second trading tool is forex. Forex stands for international trading or international money trading. In Indonesia, forex is known as international trade or international trade. In forex trading, the tool being traded is international money.
What is the difference between forex and money changer trading? There is a slight difference between the two because the transactions that are carried out coincide, in particular they trade money. The difference remains in money changer transactions, usually carried out in response to money exchanges, whereas in forex trading, it is not necessary.
Forex tools have a large capitalization value, so they are not easily played by big players, as is the case with stocks. In addition, the forex market is open 24 hours throughout the working day, giving investors more flexibility to choose trading times. This is what makes forex trading interesting.
Trading Futures / Futures
Apart from stock and forex instruments, there are also futures instruments that can be used as trading facilities. Futures or referred to as futures, as a standard contract that runs on futures exchanges, to buy or sell assets of financial instruments on the date of the period to come, at a certain price.
Assets that are used as a reference in futures trading, can be in the form of commodities such as gold or oil, can be in the form of foreign currencies or forex, can also be in the form of global stock indices, such as the Nikkei, Hang Seng, and so on. Futures contracts have a trading process similar to forex, this makes futures trading just as exciting as forex trading.
Fundamental Differences in Trading and Investment
There is a fundamental difference between trading and investing. Trading activity is trading investment instruments in a short period of time. The timeframe in trading can be calculated in days, hours, minutes and even seconds. This is of course different from investment activities that have a long time.
Briefly, here are the differences between trading and investing:
Time Period and Profit Source
Time period is the biggest and special difference between trading and investing. The following inequalities will later give rise to other inequalities.
If an investor buys an investment instrument, then he hopes for the long term. In concept, investors only do buying status when they get an investment instrument that they think is good. It also won't sell its artistic origins, until investors profit from its long-term price increases.
On the other hand, traders make purchases to resell at short notice. Profiting big from a short time is a sought after source of profit in trading.
The short period of this business transaction is because traders listen to short period price music in trading their investment instruments. This is what causes the retention of the short slant. Can be calculated in months, weeks, days, hours, even minutes.
Basic Trading Analysis Tool
The difference in thinking between traders and investors also makes the analytical tools they use also different. In making investments, either stocks or forex, investors have confirmed that they will use essential analysis.
On the other hand, a trader who trades, will often use analytical techniques, with various signs that are more responsive to short-term movements.
Concentration and Strategy
If investors concentrate more on the essential investment instruments, traders therefore concentrate more on price fluctuations. The tactics used are also different.
In making an investment, investors only need to buy investment instruments that are considered good, then they are considered to be sold until a certain time or at a certain price. If the price hasn't gone up while there's no essential song on the investment instrument, then it won't be sold.
In contrast to trading, in trading, traders buy an investment instrument by following price movements. If the trend of price movement goes up because it is bought, if it starts to decrease, because it is sold.
Trading is Not Betting or Gambling
Trading activities are of course different from betting. The difference is in the depth of analysis that has been done when carrying out the status of a business transaction.
Gambling is akin to making a chancy business transaction, without the frequent analytical basis and no theoretical basis. Betting in buying an investment instrument, can be ascertained as a bet.
In contrast to trading activities. When you as a trader carry out a status of a business transaction, then everything has been carried out based on careful calculations and monitored analysis.
Good traders always account for price reductions by setting cut loss limits. In addition, traders who can control themselves set limits on taking profits, and are not greedy.
If a trader enters into a business transaction status with 60%-80% probability of making a profit, it is said to be a trade. Meanwhile, if a trader carries out a trading transaction status with a possible profit that is unclear or may not be calculated, that is what is said to be a bet, and tends to be a bet.
If you want to trade, you can't go wrong between trading and betting. The lack of knowledge regarding the difference between trading and betting is what in turn makes some investors fall.
Trading as a Business
Trading is a type of business that can provide time and energy freedom for several actors. In this case seek freedom which is admirable because there are no conditions similar to yours, and you need to study by office hours.
There is considerable power of profit in a short span of time, making trading a great endeavor. But it must be remembered, trading is no risk. There is a risk that comes with not knowing the instrument you are trading.
When should I start learning to trade? If you want to earn income from home or anywhere you can, the goal is: As soon as possible!
Complete Guide to Basic Trading Tips for beginners
The Tips for Beginners blog post has been written to provide a useful introduction to the world of Investing. The authors hope this will enable those who are new to trading and investing in general or just want some practical tips, so that they can feel more confident when trading in their own portfolio with stocks, bonds or other assets.
First Tips:
Research the company. This is a great way to learn about what they do and how successful their business model has been over time. You'll be able to find information about past years, current customers or clients, number of employees (and comparison with competitors), and much more. The goal here is not only to understand whether this would be a good investment but also to learn as much as you can about the opportunity itself so that it's easier when deciding whether you want to invest or not.
Second Tip:
Know your risk tolerance level – there is no point in investing money where you will lose meaning be careful before investing your money in which broker to invest it in.
Conclusion Complete Guide to Basic Trading
Trading is now more accessible than ever with the invention of the internet and online trading. Basic Trading for beginners online is an easy way to make a living because it can be done from anywhere. Online trading makes it easy for you to make money from home.
well, that was a little explanation about complete basic trading guide those who know little, friends can use this guide as initial capital to become a reliable trader, hope this helps, thank you.