If you are looking for the easiest way to begin trading, then you have come to the right place.
Everything you need to know about what trading is and how you can begin trading to earn in the financial markets will be covered here.
Trading is risking money in hopes of earning more money from that investment at a future point in time.
This is where skill and experience come into play because not many people know how to trade and make money doing it, so make sure you follow the advice about doing your own research.
So if you are looking for an easy way to begin day trading, then this post will help you out greatly!
You can put your first trade (or paper trade) out onto the market today!
The stock market, forex market, and cryptocurrency market are all very different from each other. However, they all have one thing in common: trading.
Trading is the act of buying or selling an asset for a price that you think will go up or down. It is important to understand how trading works in order to become a successful trader.
When you trade, you can make your money grow faster than if you just put it in a bank account or buy stocks with it. This can help you increase your wealth without having to wait until retirement age when you want to start enjoying life more than worrying about money all day long.
Trading is an intricate craft so don’t go into it blindly, make sure you know what you’re doing, many people have lost a lot of money, but many have also earned a lot.
Anyone can trade although it requires skill, emotional control, and knowledge that everyone can build.
To make money in trading quickly, you need to know how to trade.
The first thing that you need to know is how to read charts. You can use any charting software or just use the charts on Tradingview or even the charts on your broker’s website. The best charting site is Tradingview, and the second best is just to stay on your broker's local chart.
Charts will show you the price action of a stock, currency pair, or other assets that you may be trading. The different time frames you can trade on are also crucial, these timeframes include day trading, scalping, swing trading, investing ad more.
There are many ways to make money in trading, but one of the easiest ways is to use a trading strategy that gives you a high probability of winning.
The first thing that you need to do is find a market that suits your personality and style, which we cover in depth in the “Which trading style is best for you” section of this article.
Some ways to begin learning are through courses, although much is available on YouTube. Ultimately, the best way to learn is of course practice.
How much you can realistically earn trading, is a hard thing to pin down. Although we will cover it in short here.
The average successful trader makes 10% on their account year-over-year, so if you have a decent sum of capital, some good emotional control, and technical understanding, this may be the result for you.
There are many reasons why trading can be so profitable for many people and how much the average traders earn.
The average trader will earn around $10-$15 per hour of work depending on their skill level, how much time they spend practicing and building up their knowledge base until they feel confident enough to start trading with real money on their own without any help from someone else who has already been successful at doing so themselves before going solo as well as learning from reading books, articles online or listening to podcasts about what works best when choosing which stocks or other assets (like cryptocurrencies) that might have potential returns over time.
Trading is not gonna serve as a get-rich-quick scheme for most people. If you think you’re gonna be successful immediately without effort, you’re mistaken it’s gonna be hard to get into, but has proven to be very lucrative for some individuals.
Nonetheless, you can start trading today! A process of setting up a broker account etc is marked below. On top of that, you can start paper trading first to try that out and follow some courses or YouTube videos while doing so.
Try it with a small sum of money, or even better try paper trading. Paper trading is trading with fake money, you can test your skill in.
Any time is a good time to start trading if you think you like trading, just take care and manage risk.
Most people who want to become traders should start by learning about what type of trading is best for them such as stocks, forex, and cryptocurrency markets so that they can understand how each one works and how they differ from each other.
There are not just different markets to trade in, but also different trading styles.
Trading styles are defined by different time frames and different types of chart patterns that a trader tends to trade.
The different time frames you can trade on are also crucial, these timeframes include day trading, scalping, swing trading, investing ad more.
Some different types of traders are momentum traders, breakout traders, pullback traders, and range traders.
The easiest place to begin to trade is going to be trading ranges in forex. This is because in general, it is less volatile in comparison to stocks and crypto. Admittedly this has recently quite changed in the global economic turmoil where we find ourselves now.
Another reason why Forex is usually a bit easier is that it provides many range trades. In range trades, all you need to do is buy at support and sell at resistance since breakouts are rare. Breakouts certainly happen, but it often takes quite a long time.
On top of that forex is usually not so volatile in comparison to stocks and crypto. Admittedly this has recently quite changed in the global economic turmoil where we find ourselves now.
Most people who want to become traders will start by learning about the different markets such as stocks, forex, and cryptocurrency markets so that they can understand how each one works and how they differ from each other.
Each of these markets has different Trading hours, so finding which type of market has the best trading hours for you will be central to being able to trade the market at all. Especially as a Day Trader.
The forex market is open from Monday-Friday 24 hours a day.
The US stock market (most traded) is open from 9am EST- 4pm EST every weekday (Monday-Friday)
In contrast to Forex and Stocks the Cryptocurrency market never closes, it is available for day trading globally 24 hours a day 7 days a week.
Just find which trading style is best for you by experimenting with them all and not risking too much without knowing what you’re doing during this experimentation faze.
Building a trading plan is the beginning of becoming a consistently profitable trader. Without a trading plan, you are just winging the markets and have no rules for yourself, which is a recipe to lose money.
Trading rules will be crucial to your trading plan. The rules of your trading plan should provide you with a checklist of requirements that you should check before entering a trade. There are thousands of rules from which you can pick. What your rules/requirements are all comes down to your preferred trading style.
Managing risk will be absolutely central to your survival in the trading market. Whether you want to day trade, swing trade, or scalp, you’re going to need to manage risk, so do some good research on trading plans and risk management.
Position size, account size, and risk all influence one another but are not the same thing, read more on that here.
The first step to trading cryptocurrencies would be to study a bit of what cryptocurrency is. This can be done through the study of such things as Web 3.0 and Tokenomics.
An easy thing, to begin with, is understanding what Bitcoin even is and going deeper into the cryptoverse from there.
Trading the crypto market is easily the most volatile and the most difficult place to learn to trade due to that volatility.
Trying to learn to trade in the crypto market will mean constant liquidations due to the small market cap of the currencies, making them easy to move up and down with small sums of money.
The volatility also provides the quickest gains out of all three markets, and therewith the quickest losses in all three markets.
You can start trading crypto on the following exchanges that are very user friendly and the opening of an account is effortless:
You can trade the stocks market online at most stock exchanges. A list of stock/forex exchanges is listed below in the “Best Trading App for Beginners” section
Stock trading involves buying and selling shares in companies in an attempt to make a profit on the changes in price that occur for stocks of a company.
Stock price fluctuates decently throughout the day since it is quite a large market and has quite some volume.
Forex trading refers to Foreign Exchange trading which is the trading of international currency pairs.
Out of the three types of markets that will be listed here, the forex often is often the least volatile marketplace to trade in.
For the same reason trading forex often yields the least financial gains for small accounts.
Although, the forex market makes the most ‘predictable’ and small moves it for the same reason yields the least financial opportunity for small-scale market participants according to anecdotal experience.
Forex brokers are different from stock exchanges and cryptocurrency exchanges. Yet, many stock exchanges also offer users to trade the forex market.
Before you start trading Forex it is recommended to study the economical pairs and the economies of the countries to which the currencies belong.
Inflation and the economical state of a country largely influence the currency’s price, so if you have no understanding of global events it is a hard market to trade.
Where should you start trading stocks?
The first step to trading stocks, crypto, or forex, is to open an account at a broker or on a trading app.
There are a lot of trading apps where you can start trading. Some trading brokers only provide you with one or two of the markets in which you can trade. Whether that is Stocks, cryptocurrency, or Forex.
Although, there are some brokers that have all three markets available on their platforms, like Trading 212, which provides some of the most well-known crypto names such as Bitcoin, Ethereum, Solana, and Dogecoin.
There are different things you want to look at when looking for a trading platform. These things include:
Here are the best online stock trading sites for beginners:
Just open a trading account (also called brokerage accounts) at any one of these trading platforms and begin to trade.
Most trading platforms provide warnings and tutorials on how to trade. When starting it will be emphasized to not RISK TOO MUCH.
Don’t think you’ve mastered trading and risk all your money, take good care of your money, and don’t make big bets.
How much money do you need to start with day trading? Well that depends on your skill level. There are such things as Futures trading, Leverage trading, and options trading (all referring to a very similar or even the same concept).
Just be really, really, really, careful with leverage. As a beginner it is 100% not recommended. We would advise you to stay far away from leverage at all times.
I’ve been asked before how you can “Start trading with 1 dollar,” “Start trading with 100 dollar,” or even how to “Start trading with no money.”
Unfortunately, that is practically impossible unless you have an immense amount of skill and have been trading for many years.
The reality of trading is complicated. One thing is for sure, it’s not a get-rich-quick scheme. If you think you’re gonna be successful immediately without effort, you’re extremely mistaken.
You have to ask yourself what you want and why you even want to trade. If you think it will be quick money in comparison to investing, you’re wrong. In investing you’re waiting for the returns, while in trading you’re waiting to learn, both take time.
Trading and investing are very similar concepts. Trading requires a trading plan just like investing requires an investment strategy. Trading also works with alot of similar tools.
So pick whether you want to do trading or investing wisely, investing will be better for most people who don’t have the time and effort to put into trading.
In conclusion, any one can trade at any time. You just have to set up a brokerage account and begin trading.
But certainly beware, that trading is no easy thing at all, so don’t be fooled. Do the work that is required to become good before you risk a lot of your hard-earned money.
Take some courses, get an education, and ask professional traders and investors their plans and their advise, here at boomish we just relay the information so that you are better informed at what trading even is and how to begin the process.