Becoming a trader: Step by step

By The Standard and Newsday | Feb. 3, 2022 | 4 Min read

While Wall Street can’t figure out what 2022 will hold exactly you can certainly begin to figure you’re your personal plans.

Are you interested in setting up a trading account so you can take advantage of the current economic situation and securities markets? If so, there’s never been a better time to begin. After making a basic plan, take some time to understand how software works, find a reputable broker, and study strategies to maximize potential profits. Here are five steps that offer a solid overview of where to begin and how to get involved in the exciting market action of 2022.

Make a Detailed Plan

While Wall Street can’t figure out what 2022 will hold exactly you can certainly begin to figure you’re your personal plans. Figure out what your general goals are. That often entails deciding how much capital you have available for trading, deciding which markets in which you’ll be operating, and what your definition of success is. Don’t worry if your plan is general. It should be.

However, make a point to write down your future trading budget, what kinds of things you’ll invest in, and what your short-term profit target is. For example, a typical plan might say your budget is $500 per month for trading purposes, that you’ll be working in the forex markets, and you intend to earn $200 in profit per month after a six-month training period. There are endless variations with these plans, but the point is to put all the essential facts down on paper and know your general direction.

Understand Software

Manual trading is possible, and it’s good to learn the basics of how to place orders, get out of positions quickly, set stops, etc. However, in today’s fast-paced digital world, nearly all new and experienced traders use software after a few weeks. How do software products work? You can either purchase a stand-alone product off the shelf or use one provided by your broker. The most intelligent way to proceed is to work with a brokerage company that lets its account holders use the very best software.

You can download metatrader 4 from AvaTrade and immediately begin taking advantage of all the product’s features. MetaTrader 4, abbreviated as MT4, is one of the world’s most beloved trading platforms and is currently used by many all over the globe. What does it do? First, it’s designed for forex trading primarily, but you can trade other asset classes with it, like cryptocurrency, commodities, CFDs (contract for difference).

Know What MT4 Can Do for You

There are dozens of trading platforms for new and experienced practitioners, but MT4 remains the most popular by far. There’s no mystery behind that fact. MT4 has three unique benefits: simplicity, automation capability, and worldwide accessibility.

Simplicity: Even though the software is highly sophisticated, MetaTrader 4 is ideal for beginners who want to experiment with various fundamental and technical approaches to investing. All the charts are easy to read and can be customized to suit your personal preferences. Finally, it’s easy to develop your own strategies because the software gives you access to a huge amount of data and real-time information.
Automation: The software within MT4 is entirely customizable. In addition, if you’re willing to learn the basics of MQL4 (the software’s proprietary language), you can set up a fully automated account. There’s also a news feed and an alert setting so that even 100 percent auto traded accounts will warn you when important events take place. That way, you can manually change the settings of the auto features to suit the new situation.
Accessibility: Not only is MetaTrader 4 quick and reliable, but users can choose to download the program to their computers, phones, laptops, tablets, and other enabled devices. That means you get 100 percent around-the-clock access to your account.

Find the Right Broker

It’s your money, so treat it wisely. Don’t waste time on small or very new brokers. Stick with reputable providers who have been around for a few years and come highly recommended. Read as many online reviews as possible and spend time exploring the brokers’ websites who make your short list. Be specific in your search and align your broker with you trading style. There are things to know about trading bitcoin that a day trader might not excel in and you want to give yourself the best possible set up for success.

Study the Strategies

Review the educational materials on your chosen broker’s site. Learn how fundamental and technical strategies can help keep your profit target within reach. For instance, most beginning traders employ moving averages to determine when to enter or exit positions. One popular technique is to watch for the point on a chart when the 50-day moving average crosses above the 200-day average. This change often, but not always, is a good indication that prices will rise. There are dozens more technical indicators you can use to hone your overall strategy. Take time to learn several and use them in your daily decision-making.