1. Educate Yourself:

Before venturing into the markets, arm yourself with knowledge. Read books, articles, and take online courses to understand the basics of trading, learn about various financial instruments, and market dynamics.

Familiarise yourself with trading and market terminology such as bull and bear markets, risk management, CFD’s, futures and short selling.

2. Understand the Markets:

Different markets offer unique opportunities and challenges. Whether it’s stocks, forex, cryptocurrencies, or commodities, choose a market that aligns with your interests and financial goals. Learn about the factors influencing each market and how they respond to economic indicators.

3. Set Clear Goals and Define Your Risk Tolerance:

What do you aim to achieve through trading? Whether it’s supplementing your income, long-term investment growth, or active day trading, establishing clear goals is crucial as this will determine the ‘time frames’ in which you operate. If you are a day trader for example, your reference time frames will be much different to those looking for long term investment growth. Determine your risk tolerance – the amount of risk you are willing to take on each trade – and shape your trading strategy accordingly.

4. Choose a Reliable Broker:

Selecting the right broker is a critical step. Research and compare brokers based on factors such as fees, available assets, user interface, and customer support. Ensure the broker is regulated by relevant authorities to guarantee a secure trading environment. A simple Google search will give you a long list of brokers and their offerings – just make sure you do your due diligence first. 

5. Fund your Account:

David Bowden, the Founder of Safety in the Market, tells us in our first training manual, the Smarter Starter Pack “Have a set amount put aside to open the account. Do not use money borrowed from banks or friends.”

David goes on to tell us:

“Do not open a trading account with any more than the specified amount. The specified amount ensures that there is adequate capital to prove the system and your interpretation, with an in-built percentage to ward off anxiety and panic. Don’t be pressured into opening a larger account. Wait until you have more trading experience. Also, don’t be swayed into adding to this amount until your results show a pattern of consistent profits, that is, profits consistent with your trading expectations.”

Mat Barnes, the Lead Trainer here at Safety in the Market, tells us that you can learn equally as well, if not better, with a small account than you can with a large. It’s something he covers specifically in greater detail in this video – How Much Money Do I Need to Start Trading?

6. Create a Trading Plan:

A well-defined trading plan is your roadmap to success. Develop a strategy that aligns with your goals, whether it’s trend following, day trading, or value investing. Establish rules for entering and exiting trades, and incorporate risk management techniques to protect your capital. If you need help developing your Trading Plan, this is something we teach in our Trading Plan Tune Up. Over the course of three hours, we cover a lot of the basics and you’ll learn the importance of the Reward to Risk Ratio of your trades, how to calculate it and we’ll show you how many of our students are achieving 10:1 or greater returns on their trades. You’ll also get a copy of the exact Trading Plan our students use so that you can integrate it into your own trading routine – AND the best part is, for a limited time, it’s FREE. Get your copy here – Trading Plan Tune Up.

7. Practice with a Demo Account:

Most brokers offer demo accounts, allowing you to practice trading with virtual money. Use this opportunity to familiarise yourself with the trading platform, test your strategies, and gain confidence without risking real capital.

8. Stay Informed:

The financial markets are influenced by a myriad of factors. Stay informed and utilise research tools and analysis techniques to make informed trading decisions.

9. Start Small and Scale Gradually:

As a beginner, start with a small amount of capital to minimize risk. Use this initial phase to learn from your experiences, review your trades, and refine your strategy. As you gain confidence, consider scaling up your investments.

10. Build a Trading Routine:

Establish a disciplined routine for your trading activities. Stick to your plan, avoid impulsive decisions, and maintain a level-headed approach during both winning and losing streaks. Regularly monitor your trades and adapt your strategy as needed.

11. Seek Continuous Learning:

Markets are dynamic and constantly evolving. Engage in continuous learning to stay updated on new trends, strategies, and market conditions. Join trading communities, attend webinars, and seek insights from experienced traders.

Embarking on a trading journey requires dedication, education, and a commitment to continual improvement. Remember that losses are a part of the learning process. Approach trading with a disciplined mindset, manage your risks wisely, and enjoy the exciting and rewarding journey of becoming a successful trader.

If you want to start out with a solid foundation, then this is something we teach in our Active Trader Program. 

From risk management principles to market analysis techniques, our Active Trader Program equips you with the knowledge, skills and confidence needed to navigate the unpredictable terrain of stocks, forex, indices and commodities.

With Safety in the Market as your trusted companion, you can approach the markets with confidence, embracing the thrill of trading while safeguarding your financial well-being. Explore, learn, and master the art of trading with Safety in the Market, your gateway to a secure and successful trading experience – you can find out more here.