What do you need to get started in trading?

Spreadbetting Trading

Imagine that next week; you will put up a new garden fence in your back yard. What will you need to accomplish this task?

At the simplest level, you will need the materials, the right tools and of course a plan or a set of instructions. Without these necessary ingredients you will find the task seemingly difficult.

To be successful in trading you will also need Tools.

Many traders make the classic mistake of saying to themselves “I will invest in some software or training once I have made some money.” Or, “If I win on the next trade, then I shall buy the software that I need.”

Have you ever been in a similar situation?

A professional trader’s thinking is quite the opposite. “I shall invest in setting myself up with the right tools and some training before I put on a trade.”

Having the right attitude and the necessary tools will help make your spreadbetting trading easier and more manageable. Let’s take a look at some components that you should consider for your trading business.

Firstly, make sure that you have adequate capital to trade with. Do not trade with scared money. Spreadbetting allows one to start trading with small amounts of money and build up to higher levels when you are more confident.

You should also have a trading plan that clearly states what your aims and objectives are before you put on a trade. Consider whether you will invest in a trading system or a trading method to determine your entry and exits for your trades. This will be covered in more detail over the next few articles.

Ensure you have a reasonable spec personal computer with the right software and a reliable Internet connection. This is not expensive and is a must for day traders. We shall also cover various software platforms that are available to you as a trader in further articles.

Consider a trading course to help get you started. ODL Markets provides a foundation programme for traders. Trading should be taken seriously and serious traders educate themselves to help become more successful. Trading is an ongoing education process and it is never too late to start learning and one should never feel that they know enough.

I highly recommend the following trading books, which can be of great help and inspirational for you.

Market Wizards by Jack Schwager. (Brilliant).

Reminiscences of a stock operator by Jesse Liverore. (A classic).

The day trader - from the pit to the pc. Lewis Borsellino. (Must read).

A beginner’s guide to day trading online by Toni Turner. (An easy read).

Remember, by investing in ourselves we are investing in our future.

In the next article, I will talk about how being prepared and taking a low risk trade made 450% on a recent trade on the Dow Jones.

Until then, I wish you safe trading.

Sandy Jadeja | Chief Market Strategist

sjadeja@odlmarkets.co.uk