Money Matters
Many assume trading and investing is a risky business. It can be without the right setup, knowledge, and understanding of the markets. But, if you take it slow, trade and invest wisely, and understand what’s hot and what’s not, then you can make a sufficient income from trading.
If your business has suffered an economic downturn, trading to maximize your money may be an ideal solution. Or, if you are interested in maximizing your current savings pot, trading in specific areas of interest will help you make a profit and increase your savings.
For those who want to start trading and are unsure of the safe and effective steps to do so, here’s more.
Find A Reputable Trading Platform
Finding and comparing trading platforms can be a long process. You will want to make sure the platform makes trading affordable and offer some of the lowest trading fees and smallest spreads available in the market. This will help you put in a small amount of money and trade safely, as well as maximize the profits you make.
Ensure the company has a good reputation online. You may want to consider word-of-mouth opinions or speaking directly to the company to see what they can offer their traders.
Open An Account
The next step will be to open an account with your trustable company. You might want to ensure they have a free sign-up so that you can test out the system before committing a lot of money.
A company like Swyftx, for example, is a trusted trading platform that offers traders competitive rates and as well as a feature-rich platform with new features released regularly to continually enhance the trading experience for customers.
Setting up an account is as simple as giving your name, email, and password. From there, the next step is setting a budget.
Set A Stock Trading Budget
You will want to set a budget to ensure you do not suffer a loss. Even if you find talent for trading stocks, allocating more than 10% of your portfolio to individual stocks can expose your savings to too much volatility. But this isn’t the only rule to manage risk. Other do’s and don’ts include:
- Invest only the amount of money you can afford to lose.
- Don’t use money that’s earmarked for near-term, must-pay expenses like a down payment or tuition.
- Ratchet down that 10% if you don’t yet have a healthy emergency fund and 10% to 15% of your income funneled into a retirement savings account.
Practice Makes Perfect
There’s nothing better than hands-on, low-pressure experience, which investors can get via the virtual trading tools offered by many online stock brokers. Paper trading lets customers test their trading acumen and build up a track record before putting real dollars on the line.
Practicing what’s hot and what’s not will help you minimize risk and make a regular profit. There’s no need to cannonball into the deep end with any position. Taking your time to buy and helps reduce investor exposure to price volatility and will secure your money.
With the account setup, budget set, and practice in place, you will be ready to start trading and maximize your money and trading knowledge.
Sharni-Marie
Sharni-Marie is the owner of the epic new marketing company Forj (M)arketing. She is a passionate marketer and business consultant with a huge vision to help small businesses forge their own way to future success. She loves to read and travel, always looking for experiences that broader her perspective.
