Creative professionals often have several plates spinning at once. It’s the nature of freelancing. With the global economy in a state of flux at the moment, it’s reasonable to assume you’ve thought of trading as one of these spinning plates, and a viable way to supplement your income. Start off on the right foot by considering the starter tips below.
EDUCATION IS KEY
As a creative professional, you’ll know the importance of developing some background information before diving into a project. It can make all the difference to the outcome, and trading is no different. If you set off without some learning behind you it could be an expensive experience.
When you decide to start trading it can be tempting to sign up for a platform and start right away, but hold off going live. Firstly open a practice account and begin your learning journey with videos and articles.
SET FUNDS ASIDE
Investing in the stock market or learning how to trade cryptocurrency, is a form of gambling; even if you have more autonomy over where the money goes. As with gambling you need to ensure you understand the risks and know how much you’re willing to lose.
To avoid losing huge sums trading on the stock market, employ a strategy called stop loss. A stop loss is when your trade is stopped at a certain amount to prevent you from losing any more. It can be set up on most trading platforms.
SET TIME ASIDE
If you think that trading is an easy way to earn money while you do other things then take care. Maybe on certain trades, you can leave for large periods of time, but in most cases, you will have to monitor and know when to make the changes.
Trading on stocks can be very unpredictable so you will have to observe your trades regularly. As a creative professional, you may be working at a desk in a home office, this is a perfect situation to set up a trading platform and keep an eye on it.
If you are new to trading you don’t want to put large amounts on trades, even if you do get a tip or some reliable information. You first need to learn the platforms and the nature of trading before you can make confident and reliable trades.
It is very easy to lose your money when trading, especially if you don’t know what you’re doing. The best strategy is to open a practice account and learn the ropes, slowly build up to your first trades and make the amounts you trade small and responsible.
Many professional traders only win 50% or 60% of their trades. However, the money they earn on these wins more than makeup for their losses. This tells you that you not only need to know how to trade, you also must expect to make some losses.
On your practice account learn about losses as well as gains. Often stopping a trade at the right time is just as important as placing one on an excellent commodity.