Why becoming a daytrader is easy
Becoming a daytrader is easier than ever! In this article you will read how you too can start trading in a few simple steps. By learning how to trade you will discover how to make more of your money: even with smaller amounts like one or two hundred Euros you can easily make money through trading in for example stocks and Forex.
Trading is easy with user-friendly software
As more and more user-friendly software is available, it is easier than ever to trade and invest. A good example of such software is the software of Plus500 which is available in more than 30 languages. Plus500 is a large broker where it is possible to place orders to buy or sell stocks, commodities, indices and currency pairs.
Below is a screenshot of the software. Within the software it is very easy to find and choose a trading security in which you want to invest. Once you have chose the security you wish to trade you have to decide whether you want to buy or sell. If you buy the security you make money when the price increases and if you sell or go short you make money as the price decreases.
Getting started? Click here to register for a free Plus500 account >>
Trading is easy … how about trading successfully
Many people ask me why so few people trade or invest if it is that simple. Well, this is because becoming a trader is easy, a wrong mindset however makes it difficult for many people to become a successful trader. From my own experience and the experience of many other traders it turns out that people who succeed do so not because of their amazing strategy but because of their way of thinking and acting.
If you give a great trading system to ten random people it will result in ten different results. This is because we all have to deal with other emotions and character traits. Once you figure out what your strengths and weaknesses as a trader are you can become a consistent, profitable trader.
The best traders know how to lose
An important feature of the successful trader is that he or she dares to lose. By regularly taking your losses you ensure that your capital does not evaporate because of one wrong decision. On the other hand, it is important to hold profitable trades as long as possible in order to obtain the highest possible yields.
To do so you have to determine in advance at what point you are going to take your profits and losses. For example, you can use the highest and lowest price of the previous day to determine your take profit and stop loss. You should never move stop loss farther away from the current price, only towards the current price to decrease your maximum losses. A stop loss is key in maximizing your profits without higher risks.