Trading is all about making a quick buck - but "becoming a trader" also requires good preparation. Read here how you can become a profitable trader in nine steps.
Compared to traditional forms of investment such as savings accounts, checking accounts, or even building society savings contracts, shares are seen as an object of speculation by just under half of Germans. According to the study by "Aktion pro Aktie", 40 percent of those surveyed have thought about investing in shares - only about a quarter of them have actually bought shares as a result. The reason for this is simple: a large proportion of respondents fear losing money or buying the wrong shares.
Almost half of the participants in the study who do not yet own shares also said they had no money to spare for this. Yet investing in securities is possible even with small monthly amounts. The risk of shares can also be controlled to a certain extent. One thing is true: Trading has to be learned. However, it is not as difficult as many think. We will show you nine steps that will help you get started.
What type of investor are you?
The reason why many Europeans put their money in savings accounts or call money accounts is the low risk. However, with these types of investments, your money can lose value over time: Low interest rates coupled with annually rising inflation devalue money over the long term. In contrast, stocks, ETFs, certificates and warrants offer the chance of higher returns - but at the same time there is a certain risk.
To ensure that you have a good start in trading, you should weigh up your personal risk tolerance beforehand. As a rule of thumb: The more speculative the investment form, the greater the prospect of high profits, but also possibly corresponding losses. By reflecting in advance on your own expectations with regard to profits and losses, you can select an appropriate form of investment in a targeted manner. In the case of shares, for example, you can select individual companies that you expect to perform well. If you invest in shares with https://exnesslatam.com/cuenta-pro/ of several companies, a broad diversification of shares usually reduces the risk of loss. Diversification means that the companies you invest in should be as far apart as possible, e.g. from a completely different industry.
Approach with realistic expectations
Making money in the stock market permanently requires perseverance, diligence and self-discipline. You need a lot of time to learn and practice before you can achieve lasting success. In general, the better your know-how and the more experienced you are, the better your forecasting quality and profit probability. And: The more confident and experienced you are in the necessary trading and information tools, and the more you know and understand the available order types and trading venues for the ideal management of your trading activities.
Tip: You feel unsure whether you have enough time? Start with "Paper Trading". (See point 6). When trading with fictitious money you will quickly notice how much time you need and how much time you have. Because in general you can say: the more you want to trade, the more time you have to invest.