- Home
- All Modules
- Introduction (The A,B,Cs of Trading)
- How to Trade the Financial Markets
How to Trade the Financial Markets
Okay, so you’re probably wondering how one can trade the financial markets. Well, you’ve come to the right place because we have all the answers!
Very simply put, when trading you gotta “buy low” and “sell high”.
Let us give you an example!
Let’s say you would like to buy Apple shares, and they’re currently at $10. So, after you buy shares worth $10, you wait for the shares to go up to let’s say $50. Now, if you sell it for $50, it means you’ve just made a $40 profit!
But when is the best time to buy? Now that’s where the “follow the trend” comes into the picture. We’ll tell you more about this in the next article.
**Now, what happens when the price goes down rather than going up? **
So, even though you bought $10 shares of Apple, it went down to $5. Well, in this unfortunate scenario you need to “get out” with the smallest possible loss. So, don’t wait for it to go all the way down to sell it.
Of course, you’ll hear us saying this pretty much all the time, use a protective stop loss! This way, even if you lose, the damage can be somewhat “tolerable”. Remember, trading is not always full of rainbows and unicorns, it also comes with risks!
Additionally, you also need a good trading strategy. Don’t worry though, you can practice on a demo account until you’re comfortable experiencing the “real deal” with real money. (We don’t mean to brag, but NAGA’s one is pretty awesome!) In the meantime, we can give you tips and tricks that will hopefully help you evolve!
Welcome to the trading world!
