When you decide to try your luck at trading, no matter if it’s crypto or fiat, the first challenge is to find a reputable broker. Then choose your strategy. And, finally, get your money. If you find your best trading platform India is as good for making money on trading as any other country. Here are some steps to follow for a beginner with ambitions.
Choose the Platform
First of all, you need to find a trustworthy platform. The signs that the broker is reliable are the following:
- It operates legally in your country. In the About section, there must be a mention of the national body that regulates its activities. Better if it’s regulated by the authorities of your country. But if it’s the authorities of the country of its registration, it’s also good.
- The reviews are not all unicorns and rainbows and are obviously written by various authors. If they are written in the same style, with similar mistakes or none at all, and all within a certain short period of time, they are probably fake. Otherwise, you may trust them.
- There is a local phone number and the office address, so you can contact the company officially in your country.
- The policy regulates withdrawal terms clearly.
If the platform you choose has all of it right, you can try trading on it. Don’t invest large sums, but don’t give in to delusions from your successes on the demo platform. Trading is different with real money, so some investments are necessary to get the taste of it, but not much until you are confident.
Watch the Events
Each good platform offers educational materials. Pay attention to them: they explain the techniques and give some examples. But what matters even more is how real-life events influence the currency market. If you deal with crypto, real-life events that you should pay attention to are governments’ policies in various countries, news about exchanges hacked or closed, new cryptocurrencies emerging out of nowhere, and, of course, tweets by Elon Musk. In fact, there are more factors, but you will discover them as you learn.
Build Your Strategy
Most traders go broke in a matter of months, and one of the reasons they do is they cannot embrace a certain strategy and hold on to it. There is no need to invent one from scratch: there are many popular strategies already described and tried. The most popular Forex strategies, for example, include:
- Scalping. This means that you invest in short-term (minutes or even seconds) price changes and make lots of deals with small benefits. This requires choosing a good time (when at least two exchanges are open) and high leverages, which may result in high losses.
- Day trading. This is great if you only start and spend your day at your primary job. At the beginning of the day, you predict the price dynamics for some currency pair and place your order. This takes little time on the platform, but you must stay aware of news and trends.
- Swing trading. This is for more confident traders who can predict trends for several days by indicators and news. Place your positions and wait until the price changes as you have foreseen.
- Carry trade. This involves more than one currency pair, so you find an opportunity to benefit from interest differences in various pairs. This requires some experience and cannot be recommended to beginners. Still, look at this direction, so when you are ready, you are ready.
Each of these strategies has many variants, so you can choose yours according to your lifestyle, knowledge, and temperament. They have proven their worthiness with fiat currencies, so they will work with crypto as well.
It’s a good move to play a few chess or checkers games with someone you know and record all the moves (well, you can even play against an AI), and then analyze the style with a pro. They will tell you how methodic or spontaneous you are, whether you are a better long-time or short-time thinker, whether you prefer aggressive attacks or consistent defense. According to these conclusions, you may choose the strategy that fits your nature.