Although it is commonly assumed that trading is all about stocks and shares, this is not necessarily the case. There are many other things of value which can be traded from wine, to art to animals. While some people make most of their income from trading, others do a bit on the side to supplement their income.
Of course there is an enormous amount of helpful information on trading, but if you're a beginner, where should you start? It can be perplexing. You may feel that you have put some of your savings in
Bullion Vault and feel they are secure there, but you want to make a little faster money. Here are some tips for beginners.
Know your limits
Of course you can - and should - profit from trading, but you might not always do so, especially at the beginning. It is best to know your limits and set a certain amount of money aside for trading. If that increases good, but if you lose it or part of it, then you know that you haven't broken the bank (or your bank accounts anyway).
Read and learn
Don't forget to read as much as you can - read the financial newspapers, magazines and the financial pages of the ordinary newspapers. Set yourself up with email alerts so you receive emails telling with the latest updates.
Learn from the pros
Or if not the pros, at least those with more experience than you. Find a mentor, someone who can introduce you to trading and steer you clear of mistakes. Reading is invaluable, but actually learning face to face, or over the phone or internet is even better.
Remember the power of the Stop-loss
The stop-loss is the low point at which you set your trades to be sold. This will prevent your trades from sinking too low and you losing even more money than you should.
Don't quit while you're ahead
Learning when to sell is a significant part of what trading is (as well as identifying good investments), but often selling too early is one of the best ways to limit your profits. Think twice before you sell.