If you are new to trading & investing with no prior experience, you’re probably looking for tips for new investors because you find it daunting to discover profitable investing & trading opportunities.
The biggest challenge of being a new investor is determining where to start and what to learn. There is also a problem with plenty on the INTERNET. The amount of data available is too much & most new investors find it overwhelming as to where to start & what to learn first.
Let’s simplify your life with some Tips
Let’s start with Dos, Donts & where to start
First & foremost it’s important to know, what you want out of your investing career & why? I will go in a Q&A flow to better explain.
Let me ask you what do you want from your trading & investing career? Why are you here? What’s your prime objective?
When searching for tips for new investors, you may have different agendas that may include:
- To create a supplementary side income.
- To replace your 9-5 job & give yourself the freedom to be your own boss.
- To make millions of dollars by taking high-risk gambling trades.
- Or maybe you are here purely for fun with no agenda
Now what you need to do from this point onwards depends entirely on your objectives. What you need to do to create a side income by trading part-time will differ from what you need to do to achieve a full-time career replacement vs gambling to make millions.
I believe gamblers who are here to make millions don’t need any tips for new investors considering their sole objective is gambling. At best they win, worst case they fold but either way, all they are doing is gambling and that requires very little formal training. Its all about their gut feeling & bit of luck, so if you are into that category this article is not for you from here onwards. Similarly, if you are here for only fun & time pass, there is nothing much for you either.
Now let’s come back to the other two categories. You either want to create a supplementary side income or you want to replace your 9-5 job & adapt trading as your full-time career. If you fall into these 2 categories we need the following answers:
What kind of time commitment you are willing to give to learn tips for new investors? Are you a part-timer or already a full-timer?
If you are a part-timer, the learning curve will be different vs a full-timer. So let’s assume you are a part-timer. And you want to create a supplementary side income & if you really make it big than someday you want to replace your current job/business with a full-time trading career.
Well, now we need to choose the asset class that better fits your situation. The choice of asset class depends entirely on your local regulatory environment as well as the size of your initial & ultimate investment. Some of the asset classes include:
- Commodities & CFDs
- Derivatives Trading
- Fixed Income
- Real Estate
- Art & Alternative Investments
Your choice of an asset class entirely depends on your Risk: Return profile. The rules of the game are absolutely & entirely different for most asset classes. And therefore each one of them needs an article of its own with regards to Dos, Donts & Where to Start for the New Investors. But for the purpose of our discussion, we are assuming you have chosen Cryptocurrency as an asset class to create a side income opportunity that may convert into a full-fledged career someday.
So what are you supposed to “Do” & Don’t like someone who is looking for tips for new investors?
Here are some steps that I recommend
Do: Open an Account with a reputed Exchange!!!!! You must stay away from dodgy & shady exchanges with low liquidity. Deposit a small amount. Do not start with big capital yet. Make sure to stay away from exchanges that offer Leverage Trading. If someone is offering you 100x Leverage, they are essentially offering you a gambling opportunity. they will allow you to take a 100,000$ position on a 1000$ deposit. It will take only a 1% move in the asset price & your entire capital will be liquidated. So nope, absolutely no for Bitmex at this stage yet. You aren’t ready yet
Don’t: I do not recommend paper trading to new investors. Trading is all about psychology & you can never learn the psychology of managing risk with Paper Money vs Real Money.
Do: Figure out the best free charting platforms for Cryptocurrency. Follow the Tutorial for that platform & learn how to open & view charts on that platform. I recommend TradingView.Com for simplicity. Start with the following topics to find essential tips for new investors:
- How to open & View a Chart
- How to set a Watchlist
- How to plot an Indicator on a Chart
- What is Moving Averages & Exponential Moving Averages
- What is Fibonacci Retracement & how to use it for trading
- What is Horizontal & Trend Line Support & Resistance
- How to trade Support & Resistance Zones
- How to spot & trade Price Action?
- What is Trend Trading?
- Whats is Risk Management?
- What is Money Management?
Don’t: Do not randomly start trading based on some Twitter / Telegram / Discord message randomly. Try to spend some time learning the basics of trading. You won’t be an expert overnight but at least you will learn to know what you are getting into.
Do: Find a Mentor if you can. There are plenty of good traders who offer free telegram & discord groups. Some of them also offer tips for new investors for free including regular webinars. Try to attend them & keep focusing on Support Resistance & Price Action Trading. That’s all you need to learn to begin with.
Dont: Do not complicate your life by trying to learn too many things. Absolutely stay away from Eliott Wave Theory in the initial period of your learning curve. What we don’t want is overtly complicated techniques that will harm your growth.
Do: Now start following good quality people on Social Media & slowly try to decipher their charts & see what they are trying to do. You already have the basic knowledge of the charts. Now try to replicate their strategies and see if you can find some kind of a repetitive pattern in what they are trying to do.
Dont: Don’t blindly start taking tips for new investors from random Twitter shills yet. Try to learn what they are doing & why, rather than closing your eyes & jumping into the trade. Learning is more important than earning at this stage.
Do: Keep it absolutely simple, Don’t try to overlearn.
Dont: Do not try the exotics stuff like mining, master nodes, or ICOs yet. You first need to get the hang of this market.
Do: Slowly start taking smaller trades based on the knowledge you gathered so far. Your next step as an advanced trader will be to create a Trading Plan. We will address that separately in my next article. We will also compile a list of free resources to learn the basics.
Dont: Don’t be in a rush to leave your full-time job/business until you learn the tricks of the trade.
So in nutshell, this is how you can start your trading / investing journey for cryptocurrency. Your buzzwords to learn technical analysis is: How to trade Support & Resistance Zones? How to spot & trade Price Action ? & What is Trend Trading.
You don’t need to bother much about fundamental analysis for cryptocurrency because irrespective of whoever claims whatever there is nothing fundamental about crypto at the moment. It may change in the future but for now its all about pump & dump for the most part but luckily even they follow Technical Levels which does give you a window of opportunity to learn & master Technical Analysis which can be used across other asset classes too in future.
Tips for new investors last advice
Stay away from dud coins, dodgy exchanges, shady influencers & negative haters. Try to be in the company of positive people. Try to help others if you can, if not stick to your own business & focus on improving your knowledge. If you like this article, pls do share it with your friends on Facebook & Twitter using the following sharing links.
Legal Disclaimer: This is not financial advice. Trade ideas are provided only for educational purposes.
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