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Trading Education

Coin Dealing - The Crypto Portal is honoured and proud of the partnership with The Trade Academy™, and thankful for the educational material delivered by Blagoja Pazarkoski, the experienced trading mentor of  The Trade Academy™.

 

I. Introduction

 

Is it really possible to be a successful Trader?

From my experience in trading and investing, more than eleven years in the business, the answer to the question above is: Yes! But how so many people are losing their money and most of them end up in a complicated financial situation, or worse. There are three major variables that actually influence to come to unsuccessful trading:

1. The appetite for more money: whether it is pure greed, addressing gambling needs, people wanting to retire, young people wanting more cash to buy things they at the end don't need, people to get out of poverty this leads to borrowing money they can not return, and many more different reasons.

2. Lack of knowledge, not understanding how the financial markets and trading works, and leaning on other so-called signal groups on social media and messaging apps: here we have a situation that is alarming regarding how people lightly and with joke take on trading. No one is thinking of first preparing themselves, learning, taking a demo account, go on a course, or reading a book, they just go in and lose everything most of them in the first day of trading. Moreover, we have the so-called signals providers, which are nothing more than most of the time affiliates of brokers, or, people that do not have a clue about trading and analysis (here are not considered signals providers that have proven to be genuine), so beginners, unfortunately, stick to the non-proven signal providers and the end result to their account is not different, they end up with zero just after a couple of days.

3. Ever growing number of non-loyal competition in the brokerage business: as we can see we have thousands of brokers whit aggressive marketing which unfortunately many of them are not taking care of their clients to educate them enough or restrict of what the clients can do at start with their real account and how much risk they can bring. This leads to losing the clients from start, losing reputation and losing licences.

Going through a process of learning will bring a lot more awareness to the beginners in trading what they need to do, and if it is not going good after, they should stop trading. I do not write this to say people must go and take courses, of course, if they can afford it why not, it is even better, but for most it is enough just to start learn step by step on the demo account with more scenarios and strategies that can be found all over the internet, if they think that this can be their another source of income or a profession it is good to take part in a course and gain more knowledge delivered from experienced professionals working in this business.

 

Finally, here three tips from The Trade Academy™

1. Learn to control your greed for profits and fear of losing.

2. Start developing and testing strategies that suit your style and personality foremost.

3. Keep a trading diary or notebook and write down everything you have done day by day, trade by trade, every situation marked with date and time.

 

The steps above are the basics from where you should start if you want to be a successful trader.

 

Author: Blagoja Pazarkoski, mCMI. Owner and Mentor at The Trade Academy™

 

II. Investment platforms and brokers

 

Before starting to invest, it is necessary to know the system that is used to buy shares or invest in financial instruments.

Online Brokers

The most common is to use an investment platform or also called online brokers.

The investment platforms are intermediaries between companies and investors, who in exchange for a small commission, are responsible for the IT infrastructure and intermediation. There are some banks that have investment platforms, such as the ING bank or the BNP bank. 

To start investing, you need to register in an investment platform or have a bank account, in a bank that has a platform available. There are investment platforms that accept income with a card, with transfers and online payment methods. It is necessary to know how to use online banking or go to the bank to make a transfer of money to the investment platform, intermediary bank or online broker.

Generally the most common is to buy them by bank transfer or in the case of small investors, by credit card.

Differences between broker market maker and ECN.

Not all brokers and investment platforms are the same, you have to check that they have the licenses that ensure their reliability, such as the FCA (Financial Conduct Authority) license.

    • ECN broker: they are the most recommended, but usually have higher commissions. Investments enter the real market and there are usually no scams in this type of broker. They usually have licenses to operate.
    • Broker Market Maker: they have fewer commissions but there are usually more scams in this type of brokers. The operations of the investors are in a kind of "negotiation table" so that they can invest against their own clients. Not all market maker brokers are scams, but they are the least safe.

You can also earn money when the stock goes down.

 

Keep in mind that you can also earn money, with contracts to sell shares and not only with purchase contracts. If you buy a sales contract and the shares fall in price, you will earn money. This is used in unstable moments of stock exchanges or in negative news of a company. The contracts CFD's are often used for this. In the case of bullish investing, we recommend buying official degrees and not CFD's. When the stock market falls, you can also use binary options, especially those that are stipulated certain hours or days, investing in a value that will go down at a certain time.