How to Start Using Advanced Tool Sets for a Trading Platform
Modern online trading platforms provide advanced tool sets so that you can trade Forex, stocks, equities, bonds, options, futures, and other financial instruments from any device connected to the web. Read this guide to learn how to use trading platforms and benefit.
Picking the Right Platform
As the market is overflowing with trading platforms (TPs), it’s important to know how to identify a reliable middleman and select the one that offers the best conditions for your trading needs. Here are the essential considerations:
- Fees – lower fees are preferable for traders but not if they mean poor functionary, so it’s important to find a balanced solution.
- Intermediary or broker reputation – some TPs are designed to work with particular intermediaries and brokers, which means you should assess their reputation amongst professional traders before creating an account.
- Qualification requirements – TPs may apply specific entry filters, such as a minimum account balance or other types of trader eligibility approval.
- Operating packages selection – a TP must provide different account types and operating packages for certain types of traders.
- Data charges, tools, and research – the more real-time information, quality educational materials, and screening tools are built into the platform, and the lower their cost is, the better.
- Extra fees – you should always be attentive to extra costs for alternative trading options (such as mobile trading) to avoid overpaying. If your routines require specific features, you are interested in finding a platform that offers them without extra costs or keeps them minimal.
Developing a Strategy
Starting without a trading strategy is equal to financial suicide. It’s essential to make logical decisions when emotions start melting your brain during rapid positive growth. A good strategy includes:
- Ideology – a specific goal that motivates you to move forward;
- asset allocation and diversification moves – don’t spend over 5% of trading capital on a trade regardless of its risk level;
- Loss limits – the best result is to keep it as low as 1% of your capital.
- Fundamental analysis – the more you know about your niche, the better.
- Create a trading Journal
Using Beneficial Technologies
It’s highly recommended to apply as many automation features as possible to “declutter” your brain’s “processing memory.” This will boost your focus on items of top importance. You learn to control trading bots, apply algorithms, etc.
Learning The “Don’ts”
Here are the top-3 “don’ts” to remember:
- Strategy negligence – your strategy is your program, and violations would result in impulsive actions and, most probably, losses.
- Trading journal underestimation – record everything you do to keep track of your progress and master the markets faster;
- Frequent strategy swapping – don’t jump from one strategy to another until you master at least one.
Cold Blood & Attention
Having a reliable platform and broker, you should focus on mastering the market bit by bit until you achieve a sense of its trends and movements. It’s a business where learning never ends, and the early start can be painful.