TMCnet Feature
February 23, 2021

Get Experience in Trading with Exinity

It doesn't matter in which financial market you trade and which brokerage company will provide you with Forex trading services, it is imperative to undergo training to get started. Only after completing the training course successfully, a trader has the necessary knowledge and knows how to register his trading account, which broker is the most profitable for cooperation, how to perform fundamental and technical analysis, etc. If learning the basics of Forex trading is of interest to you, then read this article carefully. We will share the most important information that all newcomers to the trading world should know and guide you on the prospects that await novice traders in the future.

What Kind of Trader Can You Become?

According to the preferred nature of trading, traders are divided into two classes:

  • Risky — Traders who consider the level of income as the most important thing. Risky traders are ready to acquire the riskiest and potentially more profitable financial assets.
  • Conservative — Conservative traders put income stability as their top priority. They are ready to receive a couple of per cents of income but know that the results of the trade are likely to be profitable.

If you are a fan of risky trading, experts of Exinity recommend that you keep in mind that you risk losing money regularly. The most profitable financial instrument is always the most unsecured. The following formula works here:

2% of the possible risk of losing investments = 1% of potential income.

According to the formula, having received 50% of the income, you are facing 100% of the hypothetical risks to lose everything.

Prospects for Making Money on Trading

It is wrong to think that having completed the training in trading successfully, a beginner conservative trader will immediately start making profits. It happens that for many months low-risk trading does not bring any results.

Trading specialists have determined the average percentage of earnings of conservative traders: 2-20% per month in case of continuous work throughout the year. Also, it should be understood that you will not see a profit of 20% for all 12 months. There will be many months when your income will be close to 2% or even zero.

When offering training about conservative trading, the vast majority of professionals hear the question — “how much can you earn by investing the minimum $100?” The answer is that the larger the initial deposit is, the more trading skills you must have, and the more you can earn.

Simply put, $100 will not make you rich if you stick to one style of work and do not make any adjustments to your trading strategy for South Africa. So do not be afraid to experiment, change your trading rules, test different trading platforms.

Consider an example: a trader always enters the market with two or three deals that are executed at the best price. This cannot last forever; this approach also does not give a lot of income. The exchange takes into account new asset volumes, executes some deals partially. As a result, the transaction does not bring any profit in terms of the main volume. For this not to happen, we recommend that you pick a reliable trading environment like Forextime, which comes with all the necessary instruments and analytical tools for successful and risk-free Forex trading.

Different Training Methods

If you think that theory is unnecessary, and you can start trading immediately, then it is a wrong approach. You should at least know the basic terms and processes. Here are some possible formats of training about stock market trading:

  • Online — Finding video tutorials and all kinds of webinars is not difficult. They are available online, including on the websites of brokerage companies. This training format is really convenient. You can view training materials at home or work in whatever free time you have.
  • In-person — If you live in a big city, finding a trading school will also be easy. The essence of full-time training is that group or individual classes are held in offices. A qualified trader is engaged in teaching. The disadvantage of the solution is the need to adjust to the lesson schedule, and the need to spend some time on the road.
  • Independent — In this case, you need to view materials on the global network (lessons, webinars, articles, etc.), read books. Even terminology can be difficult to figure out on your own.

To understand which trading training format is right for you, consider the features of each and find an approach that is the most effective and comfortable for you.

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