5 Expert Trading Tips You Must Know Before You Start

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Here you will find some good online trading tips and essential rules to avoid making mistakes. In this lesson of the trading course, you will find concepts that you should keep in mind, among which are important ones from Warren Buffett, one of the greatest investors in history, if not the greatest. To put into practice the advice you will find, open a trading account and start trading with a trading platform that allows you to practice with a dummy account without making deposits and therefore without risk. 

  1. Buy low, sell high

The first slogan you can start with is the one you hear most frequently: “buy at low prices and sell at high prices.” The sense is to buy shares at an affordable price, perhaps looking for companies that offer products that the market will begin to need in the future (or very soon) and buy them.

As we have seen, in addition to buying shares, you can trade with CFDs. However, if you prefer to buy stocks to avoid paying overnight fees, you can do so with eToro, which allows you to buy stocks, as well as trade with CFDs. This way, if you want to buy stocks to hold them over the long term, you won’t pay any fees for the purchase and maintenance.

  1. Do not trade with emotions.

There are three main enemies of the trader/investor’s action on the market: “greed, ” “fear,” and “hope. “

The first postulates that we can “be” on all price fluctuations. The second does not allow us to “be there” at the right time.

Fear often turns into panic and sells at lows; greed often pushes to buy back close to the maximum. In this regard, we recall a famous sentence by Warren Buffett: “To be successful on the stock market, it is enough to be afraid when others are greedy and be greedy when others are afraid.”

In fact, what does the mass think? He hopes when he has to be afraid, and he is afraid when he has to hope. Investing and speculating is an unnatural activity!

Also Read: How is an Online Share Trading App Profitable for Traders?

  1. Don’t look for complexity everywhere.

Often people fall into error and are not on the right side of the market because they do not make simple things “easy things. “

This means that sometimes, although the current situations are easy to interpret, there are those who try to make them very complex, thus wasting precious time for negotiations. While a strong trend is underway, in fact, every second can make you gain or lose tens of euros (or hundreds, if you make very high investments).

  1. The trend should be your friend.

One of the mistakes in trading that are committed the most is not following the market trend or following it by entering with the so-called park-oxen. In this regard, we quote the following slogan: “trend is your friend!” In fact, complexity can be seen everywhere, even in well-marked trends, but here we are only talking about trends that you should follow once you open a trading account.

Must Read: The Most Powerful Bitcoin Trading Robots and Platforms

With the phrase “the trend is your friend,” we want to highlight that trend analysis is the most precious thing for those who wish to trade online on the financial markets and obtain financial results. In general, this advice is a bit more complex, but the summary is that each market has an underlying trend, which can have pauses that you can also potentially take advantage of. 

  1. The market discounts everything

The market discounts everything: this slogan indicates that all the fundamental aspects known by the operators (and also by the insiders trading) are already incorporated in the prices of the shares.

In conclusion, each investor carrying out the various operations must be independent of brokers, newspaper articles, and company news: it is essential to rely only on your methodology once you open a trading account.

Must Read: The Impending Future of Trading Referred to as Cryptocurrency Trading

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