Why ETF Trading is Hard for Beginners

ETH Trading

Most people believe ETF trading is designed for pro traders as it requires significant trading skills. Newcomers can’t take the right decision at the beginning level. For this reason, they fail to deal with the complexities of the market. That’s why the experts suggest the newbies start ETF trading by getting the proper experience. On the other hand, professionals don’t face any problems to trade as they have proper theoretical and practical knowledge about the market. They don’t feel hesitation to take the right steps at the right time.

In this post, we will discuss why beginners face problems to trade the ETF. As a newbie, you must know about this. So, let’s discover these together.

Analyzing the major stocks

To make decent profits, you need to analyze the major stocks. However, newcomers face difficulties to analyze the major stocks. But, if they don’t choose the profitable stocks to trade, they can’t get the expected result. That’s why they should improve their analytical skills which will aid them to do better. Bear in mind, if you can trade the major stocks, you might face several winning streaks and increase your account balance. As long as you trade with discipline and aim for a high risk to reward ratio, you should not face any big problems with trading.

Lack of knowledge

According to the statistics, 3 % to 4% of traders can make profits regularly. So, you might understand, by only investing money, you can’t earn money. So, the best way is to gain the proper knowledge. You need to know about the fundamental and technical analysis of the market which will aid you to do better. Otherwise, it’s not possible to make continuous profits. Remember, without gaining knowledge, you can’t manage the risk exposure. For this reason, experts can easily manage the risk. On the other hand, because of a lack of knowledge, newbies can’t make money. That’s why smart traders at Saxo, always emphasize proper education.

Aggressive approach

Newbies can’t easily accept the changes in the market. For this reason, they face problems to cope up with the market. That’s why they start to act aggressively. Bear in mind, being a newcomer, if you think, by adopting a plan, you might be able to beat the market, it’s your wrong assumptions. If you react to the market, you will get the worst result. Pro traders always try to go with the trend of the market. They become calm during the trading hour. Because they know the aggression will destroy their trading career.

Lack of knowledge on chart pattern trading

As the newbies have a lack of knowledge of chart pattern trading, they can’t trade the ETF properly. Chart pattern trading helps the traders to trade with great precision. As a result, they get the chance to make huge money. But, being a novice trader, if you can’t interpret the chart patterns properly, you might face a big loss. So, try to develop your technical skills which will allow you to interpret the chart properly. On the contrary, experts have proper knowledge about chart patterns. That’s why they can gain the rewards.

Lack of courage

If you are not courageous, it’s not possible to trade properly. Because. Trading is uncertain and without having enough courage, traders can’t survive. However, to get the courage, they need to do practice more and more. For this, they need some time. But, as a newcomer, you will not get much time. That’s why before starting trading, you should focus on gaining knowledge about the market, which will aid you to do better as an ETF trader.

Keep in mind, to secure a good future, you need to make yourself better. Otherwise, it would become tough to sustain in this tough competition. So, prepare yourself for giving better performances. You might see the goo changes in your professional life.

Understand the Financial Market before Starting your Trading journey in just a few minutes!

One can find many financial markets across the globe if proper research is done. While some of them are major in this field, some others are small with only a few people.

In case you are a beginner and do not know what a financial market is, do not worry. It is a place where many buyers and sellers go ahead and trade their positions in stocks, currencies, commodities as well as any other derivative that is defined by basic regulations of trading which actually casually consists of one transparent pricing, cost and fees along with the market forces that determine the prices of securities.

These financial markets are used for different things, some of them are bank loans/mortgages and most commonly to trade shares and stocks.

The way financial markets work is fairly simple; many different business parties are brought together to do business and whenever a company needs to raise capital for future expands in business, some of the shares of the company are sold to investors which allows them to get some capital. The capital earned then goes towards the expansion of the company which most of the time results in increase in company income as well as the share price, if the company fails to do so, they go in debt which may later result in bankruptcy.

One of the most well know financial market is the New York stock exchange market, it is also one of the largest which is used by many investors for trading stocks. It has been estimated that almost 3 trillion dollars worth of trades happen every single day.

Now obviously, being an investor involves a lot of financial risk. This is also something that everyone wants to avoid, which is why you obviously want to do the right investment in the right companies at the right time for future profit. To help you avoid any future risk in market, here are a few tips that you must consider:

I know financial decisions can be hard sometimes, even though these risks are not usually apparent, people may take an extreme approach which does not actually match up the risk profile in other areas of life.

To help you understand this even better, let us take an Investor A, who invests all his funds in a safe investment which makes him a small amount of profit.

Whereas an Investor B goes ahead and does the opposite and invests his entire funds into a high-risk company that actually promises 100% return within the next few months.

Most of the investors that you will find in the market will either be A or B types, which is why you should consider the middle ground to get the grip with risks in financial trading.

You should know that trading in financial market is not like the one it shows in tv shows which Is why you should try Arya Trading, it is one of the best trading softwares available on the internet and is the ideal one for risk avoiders as you get the option to choose the risk level of your investing.