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Advice for Trading if You’re a Beginner

Oct 12, 2021

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After all that talk and hype about trading in forex, stocks, and cryptocurrencies, you finally caved in and wanted to get a headstart on trading, right?

However, you must be wondering if it isn’t too late to get started on this journey now?

It’s never too late. And you’ve landed just on the right page and NSBroker is the perfect platform for all the legitimate advice you may need to get started as a beginner.



Whatever the class of asset may be, there are some general rules of thumb that you need to set in stone before you enter this battlefield of bulls and bears.

  • Demo trading


The first and the most basic step would be to get your hands dirty by trading on a demo account. You can get the feel of how the markets work in real time, except that you will not be working with real cash. So even if you make a loss, you’re just practising and sharpening your skills.

However, in any case, if you end up making a massive profit, don’t get too overconfident. You’re still in the learning stage and trading is a gamble between luck and pattern recognition. You need ample experience to understand what’s on your side.

  • Choosing a Stockbroker


Choosing a stockbroker is one of the most crucial decisions you'll have to make at the outset of your trading career. All over the world, there is a multitude of stockbrokers to choose from, making it tough for newcomers to make an informed decision. To make a decision, consider aspects such as the broker's reputation, trading portal or software, and brokerage.

Pay close attention to the brokerage because you will be compelled to pay it whether you make a profit or a loss on a deal. A flat fee or a percentage of the trade value can be charged as a brokerage fee. This is especially significant for stock traders because the brokerage fees for repeated trades can soon add up.

NSBroker is one of the most prominent brokers in the European market. Get a feel of our broking website and procedures, today!

  • Start small.


It is probably the most basic advice we could give, but it is relevant. Start with a small amount to test the waters and experience trading for the first time ever. When you have real emotions attached to something, you tend to be more careful. The emotions attached to our hard-earned money are way too strong.

Even if you lost that small amount, you would make sure you found a way to earn it back. That is the beauty of trading.

  • Say no to short-selling


If you’re mildly familiar with some common terminologies of the financial market, short-selling would be the most common trading technique that would come up.

A word of advice: even when a stock's price is declining, you can make money in the stock market. It is the polar opposite of placing a buy order and is known as short-selling.

Short-selling is placing a sell order at a specific price and then purchasing the same at a lower price. Your profit will be the difference in price multiplied by the number of shares sold. While short-selling allows you to profit from a collapsing market, you should avoid it while you are still learning the ropes.

Before experimenting with sell-and-buy, master the art of the most basic buy-and-sell order.

  • Get acquainted with the jargon


Once you are clear on the technical terms, understanding the markets and your investments becomes much easier. Alpha, Beta and so on are some of the most common terms that you need to be aware of, to comprehend your returns better.

There are different types of trades as well, that can be executed to protect yourself from massive losses. Stop-loss is the most popular one. This allows you to limit your losses at a certain price point. Therefore, getting acquainted is imperative.

  • DIVERSIFY


The importance of diversification cannot be overstated. It's crucial to note that some assets have an impact on one another, therefore it's preferable to diversify between asset classes (stocks, commodities, indexes, and so on) and even within asset classes.

The concept of diversification is as old as the adage "don't put all your eggs in one basket," and diversifying your investments will also help you manage your losses if one stock fails.

  • Don’t violate your risk appetite.


We’re squaring back to where we started from, like on a demo trading account, when we see a profit, we get too carried away! This can happen with your actual trade as well.

You may get too overconfident in your abilities and may end up exceeding your investment threshold. Invest way more than you would’ve otherwise.

And on a bad day, if the market crashes, you lose everything.

Don’t let that happen to you. Trade wisely and never exceed your risk appetite.