In today’s session we are going to see about the major issue in the world of financial markets. I can even say it’s one of the most debated topics between the trading world and the outside world. Now I am going to give a solid information on why you need to see the markets as a business platform rather than a gambling world.
Today we will see how to start up a business in the financial markets, whether it be stock markets, commodity markets or the Forex markets. Now let’s start with the basics that is getting the knowledge of the business.
1.Knowledge of the markets:
Before starting any kind of a business the important thing we need to understand is the nature of the business and how does the business works. Likewise, even in the financial markets getting the proper set of knowledge is very important. As that will be the foundation for everything.
So now what do we need to know in the beginning:
First of all, don’t come into the financial markets thinking that it is a money making scheme. Where you can make a hefty money just by clicking two simple button of Buy or Sell. Nope! It doesn’t work that way. It takes a lot of practice in analysing the markets, getting understanding of the scripts you’re going trade. Working out a consistently profitable strategies and sticking to the particular strategy without changing one by one.
2.Having a proper trading environment:
Now the next important thing you need have in the financial markets is a good infrastructure. Every business needs a good environment in order to work in peace and harmony. Now never mix up your personal time with the business hours. Try to be professional how you would be in a corporate office with proper set of mind set to do the work. In this way you can have a clear trading environment and a proper work atmosphere that allows you to get a pleasant trading situation.
What are the equipment’s you need to get started? Now traders have a wrong mind-set that when they need to start trading, it’s mandatory to have six monitors and high speed super computers. No! you don’t need that, a normal PC with a single monitor or a laptop is enough to start trading. But see to that it is dedicated only for trading purposes. Now I’m not against plenty monitors or super computers, you can buy that in the beginning to if you want. Only if u can afford them or else normal atmosphere is good enough. Once you have a good laptop or PC try getting a proper trading software like MT4 or Trading view which I personally think is most valuable for trading.
3.Building up a proper trading plan or business plan:
In any kind of a business having a proper business plan is very important. Same way having a proper trading plan is very important in trading the markets. So start analysing the markets and do demo trades before getting into actual real accounts. As the quotes say “Practice make a man perfect”. Even trading the financial markets needs plenty of practising to do. Try to work out a clean strategy and try to become a master of it. Get all the necessary add on you need to add for the strategy and make it perfect. Now nothing is perfect in this world but at least we can try to build a strategy that can make u a consistent profit without losing. In the trading world wining is not about making profits but on securing your capital.
Those who are having a trading plan survives in the market, they that overlook and start trading without a trading plan is the one who blows their account away. Always have a proper business plan before entering the markets.
4.Having a proper risk management:
Now like any other business you need a proper risk management in order to stop your losses. Well that’s why we have stop losses in trading. Now coming back to risk management, always know how much to invest in the growth of your business. Think about the investment you’re going to make whether it’s really a good profitable investment or a bad bet. So always think about the trades you’re going to take, whether the particular trader that you’re going to is going to be profitable or not. Always check whether the particular trade that your taking has a proper reason behind it. Not with assumption or some intellectualisms, because assumptions don’t make you money but a proper business plan does.
Now always have a backup plan when a trade is going against you. Let me give you small example:
“People take shelter when the rain is going to come, how do they know that because they have seen the dark clouds arising and you have seen it many a times. So automatically you run for the shelter”
Likewise, in trading always try to get to safety before the rain starts to pour or your accounts gets burned out. So in order to know when you’re going to get burned you should have the knowledge when the trade is going against you. That’s why always take plenty time to analyzing the markets and practicing it.
From this one can understand that trading the financial market is not gambling but a healthy business. Where people can setup business and make a fortune out it. Even many can make a career in the world of financial markets.