If you have just jumped onto the bandwagon of innumerable traders across the globe and if you have earned proceeds from trading, you would surely know how exciting it is to receive the first profit. This is a natural phenomenon for any amateur trader. But how many amateur traders have you actually seen that could prolong the thrill of trading? Perhaps, not many and the main reason is that they are not aware of the tricks of the trade.
Most of the time, it has been observed that traders that do not seek professional guidance end up quitting the market. But with ETX Capital, you can be rest assured that you have a long way to go. Remember, there is no umbrella solution for all traders. If a particular trading strategy works for you, it might not work for another trader. Professional guidance is essential because even veterans are not able to predict market conditions accurately at all times.
Here we will explore few tips that can help you to trade wisely so that ROI or Return on Investment is much better than the other traders.
4 Ways to trade wisely and judiciously
Given below are the measures you can take prior to taking the plunge.
- Signing up for an online account – This is perhaps the most important step that you are required to take. And if you have a reliable service provider to bank upon, half your battle is already won. There are many such platforms operating, one of the prominent ones being ETX Capital.
- Analytical tools and online assistance – In order to trade intelligently, you cannot just depend on your own instincts. It is of utmost importance to refer to analytical tools and online tutorials in form of webinars and expert guidance. Most importantly, you could also refer to the infographic in the trading platform website to get a better insight into trading.
- Take baby steps – It is not wise to start trading by investing a fortune in the initial stages. You can take baby steps and invest only a little of your hard earned money, study the behavior of the market, observe the trends and patterns of trading, and then decide whether it is time to take the next step.
- Don’t ignore taxes – Often, what first time traders do not know is that the proceeds of trading attract taxes. However, the amount of tax that you have to shell out would differ from one trader to another. You are required to pay Capital Gains Tax on profits you earn from trading regardless of whether you are selling or buying shares or if you carry out any other investment transaction. You are required to pay taxes for units (unit trust), bonds that do not include Qualifying Corporate Bonds and Premium Bonds, and shares that you have not invested in ISA or Individual Savings Account and PEP or Personal Equity Plan.
Trading is an emotional affair!
Trading is not just about investment, there is an emotional side of it too. Repeated failures cause stress and compel you to leave the race but not if you have an expert by your side.