If you are new to the world of online trading, taking your first steps might seem like an intimidating prospect. But fear not: everyone has to start at some point, after all, and there are concrete things that you can do from the very beginning to help your cause.

In the sections below, we will provide some basic, practical tips for new traders to help you get started on the right foot and maximize your chances for success. 

Educate yourself

This probably sounds obvious, but it bears repeating nonetheless. The more you educate yourself about what you are getting into, the greater your chances for success will be. Particularly when it comes to something like trading, it is easy to get swept up in the fervor of it all and just start buying things that look good before you really know what you are doing.

If you’re not sure where to get started, look up basic strategies and principles for trading. Familiarize yourself with the principles of technical analysis, and learn the rules behind risk management and the psychology of trading. This is more important than you might think, but it is a major factor in doing it successfully.

Develop a plan of action

Of course, when you’re getting into something new you should be prepared to be flexible. But you should start out with a basic idea of what you want to accomplish and the steps you will take to get there. Your plan should include how you will get involved and how much you plan to risk on each trade. You should develop a larger strategy for risk management so that you can keep each of your investments in perspective. If you do this carefully, you can make necessary adjustments along the way and not be at risk of suffering a huge loss.

Find the right platform

Part of your preliminary research should include finding a platform that you will be comfortable working on and will be beneficial for you. If you are lucky, you will be able to find one that offers a no deposit bonus to help you get started. Other things to look for include low transaction fees, speed of conducting orders (some numbers can change quickly, after all), and the safety and security of your chosen platform. One way you can check this is by looking at third-party reviews and making sure that the one you’re considering gets high marks from other users.

Start small and work your way up

Like in any new endeavor – especially one that involves financial risk – it is a good idea to start out carefully and get a solid idea of what you’re doing before you charge ahead. If you see really profitable looking offers, you will probably be tempted to snatch them up right away. But remember that bubbles can be burst easily, and many assets start off strong and then become problematic for unexpected reasons.

Steer clear of “penny stocks” 

Just as the word itself is rapidly falling out of the English lexicon with inflation, so too should you avoid stocks that trade at less than $5 per share. They simply aren’t worth it. These kinds of stocks have a high likelihood of being delisted and will probably be a waste of your time. So while it is a good idea to start small, these particular stocks are too small. Invest in things that at least compensate for the amount of time you spend on them.

Pace yourself and stay connected

In investing, it is a good idea to maintain consistency and learn to take pleasure in gradual success. It is steady growth that will serve you best in the long term, even if it isn’t the most exciting on a day-to-day basis. And if you see one of your assets starting to go down, take a pause and look at the larger picture. Is this the type of thing that tends to fluctuate and then bounce back under certain conditions? Was there something in particular that caused it to become volatile that might later disappear? Learning to stay calm under challenging conditions is just as important as staying calm when you’re excited.