Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62.96% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
62.96% of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Important Notice - Fraud awareness
Important Notice - Scam alert
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. 62.96% of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
Important Notice - Fraud awareness
Important Notice - Scam alert
The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider.
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. The vast majority of retail investor accounts lose money when trading CFDs / Spread betting with this provider. You should consider whether you understand how CFDs / Spread betting work and whether you can afford to take the high risk of losing your money.
ATFX

FCA License No: 760555

Language
    rch
    Client Portal
    Start trading
    rch

    3 Fundamental Skills Every Investor Needs to be Successful - Trading Strategies for Beginners

    Traders tend to choose their investment strategies based on their different financial backgrounds. Most of us choose to invest in ways that match our personalities. Capital predators tend to rely on other companies or go to acquisitions and mergers to obtain wealth. The choices for the individual with limited funds to invest are savings, bonds, wealth management, and financial products such as shares, commodities, Forex, etc.

    Some people choose fixed-income investments because of their investment funds’ guaranteed income and safety, making such investments very reliable. Others choose to invest their funds in fintech companies that provide fund management services directly to clients with minimal costs.  In addition, some people will choose to invest in the stock market; as long as their investment choices do well,  they will make good returns. Finally, some people invest in the foreign exchange (Forex) markets. 

    Most investors enter the market intending to earn extra income and change the future financial direction of their lives. However, if they do not have enough investing experience, it becomes challenging to obtain a great result in the trading market.

     

    Here are the three skills every investor needs to be successful.

    1. Learn to obtain and update information

    The fluctuations in the financial markets and the comments made by politicians in various countries are also quite significant. For example, the impact of Donald Trump’s Tweets about stocks and Elon Musk’s Tweets about cryptocurrency and bitcoin. The Fed Chairman’s speech is also regarded as an essential market trend influencer.

    Each person has a unique understanding of the information provided about the financial markets. Investors who have more information are often in a more favourable position than investors who have relatively less information and are often at a disadvantage.

    The above scenario demonstrates the importance of information in investing. Investors need to accurately capture the impact of the relevant information on an asset and the positive or negative effect on the broader market.

    As a broker that has won the “Best News and Analysis Provider” and “The Best Educational Program” awards, ATFX provides customers with financial news sources such as Dow Jones, Trading Central and other news sources in more than ten different languages on its platform. In addition, ATFX also provides a real-time global economic calendar and indicators on its website. ATFX analysts also regularly hold live broadcasts and share market overview analysis videos.

    obtain-financial-information

    2. Learn to use the right trading tools

    In the financial markets, in addition to obtaining relevant and timely information, the ability to choose the right investment tools is also indispensable. Good tools can increase your return on investment in the financial markets. Whether it is an investor who has traded for many years or a "trading novice" who has just entered the market, good investment tools can interpret market information to the benefit of all investors. 

    ATFX provides customers with an MT4 trading platform. As we all know, MT4 is one of the most successful and popular trading platforms in currency market analysis and trading software. The MT4 platform allows users to freely write EA (Expert Advisor) programs and perform strategy backtesting on historical data using the created  EA. In addition, ATFX also provides customers with a trading analysis tool, Autochartist, which allows customers to try a variety of trading tools on the market combined in one tool, including chart pattern recognition, Fibonacci patterns, key positions, fundamentals Analysis, volatility analysis and macroeconomic analysis, among others. 

    mt4-trading-tools

    3. How to take profit and place stop-loss orders

    In the market, if the assets you buy end up in a bull market, I believe most investors will be happy, but just like a coin has two sides, whenever there is a bull market, there is also a bear market, and just as you make profits, sometimes you will lose.

    If you buy an instrument for a long-term investment, the market price of this product could rise slowly after the purchase. After reaching a high level, the price could fluctuate between gains and losses and drop over time.  You could end up booking a loss if you didn’t sell when the price was at its highs. Excellent traders can obtain considerable profits as they take profits and limit their losses using stop-loss orders. 

    take-profits-limit-losses

    Taking your losses early using a  stop-loss order is very important to prevent booking more considerable losses. Having profit targets is also crucial to protect your earnings and ensure that your profitable trades do not turn into losses. 

    Learn more about how to trade for beginners

     

    Download Metatrader 4 account or set up a demo trading account to start trading now!

    Last Updated: 21/12/2021

    This market commentary and analysis has been prepared for ATFX by a third party for general information purposes only. Any view expressed does not constitute a personal recommendation or solicitation to buy or sell as it does not take into account your personal circumstances or objectives, and should therefore not be interpreted as financial, investment or other advice, or relied upon as such. You should therefore seek independent advice before making any investment decisions. This information has not been prepared in accordance with legal requirements designed to promote the independence of investment research and as such is considered to be a marketing communication. Although we are not specifically constrained from dealing ahead of our recommendations we do not seek to take advantage of them before they are provided to our clients. We aim to establish and maintain and operate effective organisational and administrative arrangements with a view to taking all reasonable steps to prevent conflicts of interest from constituting or giving rise to a material risk of damage to the interests of our clients. The market data is derived from independent sources believed to be reliable, however we make no representation or warranty of its accuracy or completeness, and accept no responsibility for any consequence of its use by recipients. Reproduction of this information, in whole or in part, is not permitted.


     

    Recent Posts

    Trading Strategies for Beginners
    3 Factors That Affect the US Dollar Rate – Trading Strategies for Beginners

    What factors affect the value of the U.S. dollar? When investors decide to buy or sell U.S...

    Trading Strategies for Beginners
    Forex Trading vs Precious Metals Trading: What Are the Differences?

    Forex trading and precious metals are two trading categories that are popular in the finan...

    Trading Strategies for Beginners
    3 Crude Oil Trading Tips & 5 Factors That Affect Crude Oil Prices - Trading Strategies for Beginners

    There are many different techniques for investing in spot crude oil due to differences in ...

    Trading Strategies for Beginners
    What is Bitcoin? 4 Easy Beginner Tips & Steps to trade Bitcoin

    Bitcoin is the leading digital currency, which means that all operations and transactions ...

    Trading Strategies for Beginners
    Complete Forex Trading Guide - Trading strategies for beginner

    Forex trading is the exciting world of trying to profit from the price changes between the...