The markets hold so many opportunities for new traders, but it can be tricky to know where to start. Nadex is here to help you tap into the markets and find the right opportunities with 8 important tips to help you kick off your trading journey.
8 quick tips for new traders
Start off on the right foot – this is great advice for life, and great advice for trading. But what about when you don’t know where, or how, to start? Here are 8 quick tips to help you start trading with confidence:
1. Do your research
We know you want to get started, and that’s great, but you need to be prepared. If you dive into trading without knowing anything about the markets, you’ll probably have a negative experience, and that is enough to put many traders off. Trading should be fun and enjoyable. As trading can be closely linked to current affairs and world events, getting started could be as simple as:
Watching the news
Following politics and current events
Doing some preliminary reading on markets you can trade
Looking at an economic calendar
Then you’re ready to start thinking about how you can use this information to start trading.
2. Manage your risk
Never trade with more capital than you can afford to lose. Make sure you’re comfortable with all positions you enter and never exceed your maximum risk. Nadex products are very helpful for new traders because they’re all limited risk, so you can see exactly how much you could lose or how much you might profit at a glance. This information is clearly displayed on your order ticket before you decide if you want to move forward with a trade.
However, this will depend on your own trading plan and risk management strategy. As a trader, the goal is to minimize risk while maximizing the probability of success. Learn more about trading binary options based on probability.
3. Set yourself targets
How will you know if you’re a successful trader if you don’t have any targets? Start off by setting yourself a daily profit target that is easily achievable. When you’ve achieved this, it’s time to stop trading for the day. No ifs, ands, or buts about it – you need to exercise discipline as a trader.
4. Take a test drive first
You wouldn’t buy a car without test driving it first. Trading is the same – before you put money into it, take the opportunity to try it out. Open a Nadex demo account and try all the features of a live account, but in a virtual environment. You'll get $10,000 in practice funds to trade with.
5. Keep a log
It’s important you keep an accurate log of every trade you place, as well as the outcome of it. Then at the end of each trading day, record whether you achieved your profit target. If you find yourself continually falling short of your targets, it may be time to rethink your strategy.
6. Invest in yourself
It’s easy to be harsh on yourself when learning something new like trading. But unless you invest in your own education and take everything you need to know on board, you will be at a distinct disadvantage and will set yourself up for failure. Spend time attending webinars, reading educational articles, and putting what you learn into practice with your demo account – it’s more rewarding this way. If you immerse yourself in trading and absorb new knowledge, you’re far more likely to succeed.
7. Learn what makes you tick
Trading can be fast-paced. Trading can be intense. Markets move. Capital is at stake. These are exciting yet testing situations and you won’t know how you’ll react until you actually do it.
You might find yourself getting excited by an opportunity, which is great, but this could also encourage you to risk too much capital. You might find that you get frustrated easily. In this case, it’s probably best to walk away from your trade and come back to it with a fresh pair of eyes. Trading is a major learning curve and you’ll find out a lot about yourself in the process. In the meantime, manage your risk carefully and take the time to learn more about trading psychology.
8. Have fun!
Trading is challenging but that’s part of its appeal. When you start out, treat trading like a project and invest in yourself. Continue the hard work, and you’ll start to see your investment paying off. This is where you can find a real sense of enjoyment in trading.
Starting your trading journey
Starting is the hardest part – but Nadex is here to help you. We have lots of resources for new traders and we’ve designed a simple trading experience to help you access the markets quickly and successfully.
Take a look at some of our resources to get you started:
Get the low-down on trading with Nadex. Check out our YouTube channel.
Sign up for a webinar and delve into the platform with a Nadex expert.
Create your trading plan.
Learn the basics of binary options so you're ready to dive in.
Take a look at our platform walkthrough.
If you need to talk to someone directly, our customer service team can provide personalized support.
Open a Nadex account
Learn to trade on Nadex with a risk-free demo account and $10,000 in virtual funds.
Ready to day trade now? Sign up for a live account with no minimum deposit required.