Top tips for when you’re learning to trade

Trading the stock or forex markets can seem like a panacea for all your problems; you can set your own hours, work from wherever you like and theoretically make as much money as you want. However, it’s important that you understand the reality of the risks involved, have realistic and attainable goals in mind, and develop a clear plan of action for when you’re starting out. By following these tips, you can avoid unnecessary financial risk and let your money work for you.

Start with achievable goals

There is a steep learning curve involved and new traders often underestimate how difficult it is to be successful. Don’t leave your job to commit to trading; you need to be realistic about how much money you will make, and have a safety net for if anything goes wrong.

Consider your long-term goals — if you are clear about how much capital you will need and when, you can then calculate how much you need to invest and what return you need to produce the desired result.