We get asked a ton of questions about trading. Here are some frequently asked one’s put together.
I’m new to trading, where do I start?
Start with registering for an account at an online broker right away, because you can start using demo simulations of the trading platform to start learning. Pick one here and start reading our how to trade like a pro guide whilst practicing with the demo platform. The best way to learn is to do it. Once registered, you will also get £20 bonus money to start trading for real. Once a little prepared, you can also use this to practice for real money, without using a dime of your own. Also, keep on reading our trading blogs, for example: how to profit with CFD trading with only 160 euro.
How much money does a trader need to start trading?
Answers varies when it comes to how much money you need, from only £5 to £50.000. It all depends on how you want to trade, your personality, circumstances, trading strategies and goals.
You can also just sign up for an online CFD broker like Plus500, where they offer you demo money when you open an account. So it is possible to start trading real money without using a single cent of your own.
I started with only 50 euro and then I started practicing for real until I saved up around 2.5k. I had this amount of money set as goal and didn’t stop until I reached it. Now I set it apart as the only money I use for trading, nothing else. I don’t touch this amount and only use it to trade. If I lose, I have to add more in there. Anything up this amount is profit which I allow myself to freely use. Every now and then, when I think it’s time, I will up the amount of money I set apart.
How long does it take to make a stable income with trading?
Answers here also varies. People have been able to make a stable income within only 6 months, some people think you will never be able to do it. I and my fellow traders believe in the first, in being able to make a stable income. How long it takes? Hard to answer, because this also depends on how you are as a person and how much risk you are willing to take. I have been doing this for over 3 years now and I am finally starting to make a stable income from it. I still work besides trading, but I can work less with it.
Here are the steps that you should take when starting to trade:
- Set your own pace
For example: use a 3 month period where you read our articles and practice in demo in the 1st The 2nd month is for trying out trading with a small amount of money until you reach about 8/10 profitable positions. 3rd month is for setting your own trading strategy.
- Get experience fast.
In my experience you don’t learn until you start doing it right away. Learn by using small amounts of money first. Also, you don’t learn to stand up until you fall. So get ready to lose a small amount of real money, just to feel how it feels like!
- Stay active on trading forums like ours, share and learn from others
I could have never gotten this far without my trading friends, online and offline. Post your strategy in our forum, share your thoughts and welcome feedback, critiques, whatever people have to say about it. This is the only way to learn on how to profit.
Is trading the same as gambling?
No, it isn’t the same as gambling, as gambling has no educated arguments on whether you should open a position. As for trading you can educate yourself on which companies are worthwhile to start trading with. For us, trading is far from gambling. You can gamble without knowledge, but you can’t trade without a bit of knowledge on what you are doing.
Is it dangerous to trade with online brokers?
No, but you should find the ones that are regulated by the FCA to avoid scams. More information can be found on their website: //www.fca.org.uk/. The online brokers that we use are all regulated. Take a look at our brokers review to find out which ones is the best. My personal favorite is Plus500, for its ease and well-known credibility.
How difficult is it to trade?
It isn’t at all. Many people think that trading is only for people with profound knowledge of it, but you don’t. You can start at a young age and right away. Just make sure you don’t use more money than you need.
Can you lose more money than you deposit?
Mostly no, but you need to make sure you are using an online broker that has negative balance protection. There are not many CFD brokers that has this kind protection. The brokers that we are using are one of the few, look at our brokers review here. Negative balance protection means that if your equity goes to 0, your position in closed automatically, instead of going to a negative number. This means you cannot lose more money than you deposit. If this happens, this is called ‘margin call’. Be sure to check out your brokers terms and conditions for ‘negative balance protection’.
What brokers are good to start with?
I personally recommend Plus500. Why? Because their platform is easy to understand, they are regulated by the FCA, so your money is safe, they have negative balance protection and they are also one of the few that provides that many CFD stocks. So you can start trading in any company you like. Be sure to check out or other reviewed brokers too for good brokers to start with.