Trading is no mean feat. A lot of people go online, look at big trading success stories and think anyone can do it. They jump in, spend too much money at once and end up making huge losses- proving once again why trading is nowhere near as easy as it seems. People who make these huge profits and well trained, well drilled and know exactly how the trading world works. When you’re a beginner, you need to slowly learn the tricks of the trade and build up your knowledge of how it all works. Then, with a bit of luck, you can start to make some small profits and build these up over time. But how do you do this? Don’t worry, we’re here with some of the most basic and helpful tips you can get. Here’s what you need to know about starting trading in Singapore when you’re a beginner.
For a guide to Singapore investing, follow our link.
First of all when you start out trading, you need to set aside some time to do it. It’s not something you can spend 10 minutes on a day, and it’s certainly not something you can work on while on a job. It requires your full and undivided attention, which will allow you to focus better. You’ll be more likely to notice positive trading trends, take heed of better stocks to purchase and you’ll be less likely to make mistakes. These kinds of factors are some of the most basic in the trading world, but spending a good amount of time trading will help you get better results.
Like we mentioned before, you should make sure that you start out with smaller stocks. There’s no point jumping in with the big fish at this stage- you’ll get eaten alive. You’ll get to that stage in time, but right now you need to build up your skills and funds with the smaller stocks on the market. This will allow you to build up your know-how of how the trading world works, and you’ll reap the benefits of this in the future. It’ll also mean you’re less likely to lose money, as even if you do make mistakes (which we all do at this stage) it’ll be on small stocks not worth much. You’ll be able to learn from your mistakes and get better in the future.
You also need to keep a cool head. If you sit and get worked up over the most trivial of subjects and stocks, you’ll only go from bad to worse. You could end up making rash decisions and end up losing even more money than you already have. Remember, we’ve all made mistakes at this level and there’s nothing wrong with it. Keeping a cool head will allow you to learn from them and get better with time.
Make sure you’re realistic about your profits, too. You aren’t going to become a millionnaire overnight, so keep your trading sensible and keep your profits respectable. This will work much better for you in the long term and help you become a better trader in future years.
Share
Contributors
