In 2022, more people than ever are dipping their toes in the water to learn the art of trading, with the explosion of cryptocurrencies like Bitcoin largely credited with piquing the interest of younger generations.
While trading was once considered a pastime reserved solely for seasoned professionals and those who had studied the stocks and shares market extensively, technological advances have transformed the sphere entirely and made it accessible to a whole new cohort. Digital platforms and apps have made it possible to sign up and make your first deposit in a matter of minutes, and thanks to artificial intelligence, software providing free signalling has meant that even complete beginners can give it a go with little to no knowledge or experience.
But although anybody can now buy cryptocurrencies and other assets with just a few clicks on their smartphone screen, those who see the greatest success in trading are still the people who spend time learning, reflecting and honing their skills.
Trial-and-error is a great way to get some hands-on experience, but if you’re past the point of trying things out and want to polish your skills and up-level your strategy, then here are five ways to do just that. If this little lot whets your appetite, then there’s plenty more to learn on the topic – visit Immediate Edge for a deeper dive.
Start a trading diary
If your trading journey thus far has involved mainly making uneducated stabs in the dark in the hopes of turning a profit, then it’s time to get serious about your journey, and that starts with organisation. Making notes of the moves you make and the results they yield is key if you’re to learn as you go along, and will provide valuable data to look back at and reflect upon to see where you can do better next time.
Keep a chronological list of all of your past activities and all of the assets you currently hold, and make note of all of the data you draw upon to make each decision going forward, keeping screenshots of the relevant charts for reference. You’ll be surprised at how useful you’ll find your journal moving forwards, and may be impressed at just how far you’ve come when you look back at it later on.
Invest in trading software
With such a plethora of great trading software now available to make every trader’s life that little bit easier, it would be silly not to take advantage of them. Have a look at what’s currently on offer, and see which one suits you best – features like technical analysis and research functions will make your life far easier when it comes to making educated decisions, and can be a great time saver if you have a busy lifestyle.
Trading software isn’t just designed to provide you with data, but also allows you to test out your future moves through virtual tests before making them in real time, thus enabling you to make better informed decisions and minimise any potential losses – as well as maximising potential long-term gains.
Take inspiration from top players
One of the best ways to up your game when it comes to trading is to study the strategies and techniques used by those who have gone before you, and who have already achieved the kind of long-term success you dream of. When starting out in trading, it can be easy to get over-excited and tempting to go all out in pursuit of quick cash, but almost all of those who have successfully built a fortune by investing in crypto or trading stocks and shares will tell you that patience is a virtue – and willingness to play the long game is essential.
There are plenty of resources out there charting the meteoric success of super successful traders like Warren Buffett and George Soros, so make use of them and gain an insight into the approach they took and you may well gain some valuable insights.
Assess your risk tolerance
New traders tend to go one of two ways: all in, with big money investments and trades, or with caution, risking only tiny amounts until they have a better understanding of how the process works. The latter is generally the wisest approach when starting out, and will protect you from any huge financial losses while you learn the ropes – as a general rule of thumb, you should only take risks you can afford to.
If you already have billions in the bank you’re not afraid to lose, that doesn’t mean it’s a good idea to make eye-watering trades from the off – but once you get to grips with the markets and are comfortable with your strategy, you can increase your investments accordingly.
Trading – particularly when it comes to cryptocurrencies like Bitcoin – requires tolerance for market volatility, and dramatic peaks and troughs are common. At this point, you’re likely already familiar with this phenomenon, so increase your investments when you’re ready, but do it carefully.
Learn to spot a rumour
The world of trading is subject to assumptions and suppositions on a daily basis, which can make it hard to get a clear picture of what’s really going on in the markets. For this reason, it’s imperative that you take the time to assess real data and do your research before making any bold moves on impulse, as these can often turn out to be misguided.
To keep abreast of current goings on and any potential rumblings in the market, follow updates from a reputable stock market news source, and do your own research to verify what’s being said. Don’t rely on Twitter, or even the word of other investors, to confirm current movement or predict the future of trading, as these are not always accurate.
