How to start investing completely from scratch?

Today I want to focus on the first steps you must take so that you can start investing from scratch, without any experience. At the same time, I will give you tips that you must take into account to invest efficiently. 

In addition, we are going to talk about the most typical or common mistakes that traders make when starting to invest.

Choose the right broker

A broker is like your bank. In order for you to invest in the markets, buying or selling stocks, cryptocurrencies, currencies, or any instrument, you will necessarily need a broker who will act as your intermediary.

The moment you want to buy, the broker will find a seller to close the transaction, and for this activity, the broker will take a commission.

Taking into account that you will deposit your money in a specific broker, it is important that you take certain care when choosing it. Below I will name some suggestions for you to choose your broker correctly:

• Regulations: Brokers must be regulated by the laws of the country where they reside and it is important that your broker has approved regulations. These laws protect your capital and ensure that your broker is trustworthy.
• Years in the market: A broker must have at least 10 years of experience in the market, to ensure that they have the strength and solvency necessary to survive and that it will not disappear overnight.
• Available markets: Some brokers focus only on a specific market; for example, the Stock Market or currencies. Make sure your broker allows you to operate different markets; for example currencies, stocks, cryptocurrencies, goodies, commodities, and so on. This will allow you to have a diversified investment portfolio without having to use different companies and have different accounts.
• Low commissions: Every time you interact in the market, you will have to pay a commission. Some brokers may offer you discount vouchers when you open an account with them, but the safest thing is that they will later charge you high commissions when investing. Today there is a high number of brokers available, which allows you to choose competent and affordable commissions so you can get your money back quickly.

Learn technical analysis

Investing in the markets is a profession that requires education. If you just want to have fun and have a moment of adrenaline, I recommend that you go to the casino or an amusement park and get on a roller coaster.

As in any profession, if you really want to succeed and be a professional you will have to train. Technical analysis will allow you to observe the markets and find trends and behavior patterns.

Here is a list of concepts about technical analysis that I recommend that you study and learn:

• Japanese candles
• Elliott waves
• Moving averages
• Support, resistance, and trend lines
• MACD

There are actually hundreds or perhaps thousands of techniques for investing in the markets. The list that I have given you above is just a small number of areas of technical analysis that I use on a daily basis.

If you use other techniques or indicators and feel comfortable with them, keep using them. You may have preferences over other indicators, but in the end, what matters is that you know how to use them and lean on them to make a better decision Portable Badminton Racket.

Be realistic with your goals

Many people approach the world of financial trading with the intention of making easy money or becoming millionaires in a short period of time. 

Although the stock market and investing is a world where almost anything can happen, the chances of you becoming a millionaire in a short period of time are very low, almost like winning the lottery.

However, you can create a realistic goal plan that allows you step by step to achieve everything you set out to do. If you have never invested in the markets, before thinking about luxuries, mansions, and sports cars, I recommend that you think about generating an extra income, an income that allows you to complement what you already earn in your work.

It's not just about making money, it's also about building self-confidence and feeling comfortable and familiar with the markets. 

Investing in the long-term markets will bring you the peace of mind of being able to work from home and be able to generate income constantly, but first you have to study, learn, get the experience and prove to yourself that you can generate an income constantly. If you have a family, think twice before you quit your job and depend on investments 100%.

Making a profit of 6% per month is realistic and achievable for anyone who is investing in a solid part-time strategy.

If you have already been generating partial profits for more than 4 months, maybe it is the moment when you consider dedicating yourself to the markets full time. Think of the markets as if you were doing a university degree, you must first graduate and then get the experience in the field before becoming a professional.

Don't make these mistakes

Below I want to name you some of the most common mistakes that future traders make when they are starting to invest in the markets. 

Avoid these mistakes and you will achieve success much faster than you imagine. I must tell you that the vast majority of traders have made these mistakes at some point in their investment careers.

• Use stop loss: It is impossible that you do not always win in the markets. Accept that sooner or later you will lose money and you should keep those losses small.
• Choose a small number of indicators: Reloading your screen and your head with many indicators and technical analysis techniques will not make you have better decisions when entering or exiting the markets.
• Use a clear and simple strategy: It is not necessary to be a physicist or a mathematician to apply a highly effective strategy and achieve good results in the market, choose a strategy that is simple and easy to apply to several markets at the same time.
• Do not "over trade": When you are not clear about your goals and financial possibilities for profit, you may begin to overexpose your investment account and risk a large part of your capital at the same time. Be cautious and don't use more than 15% of your account at the same time.

Be patient with yourself, you have a great opportunity in front of you and once you master the techniques of the markets you will be very happy to have chosen this profession for the rest of your life.

The markets have been and will be available for many years, now it is in your hands that you train properly, invest in your education, and start living the life you always dreamed of.