If you are a new trader, then the chances are you have a lot of questions. So here are the common FAQ new traders ask for.
New Trader FAQ to Get Started
Less than you think. Yay!
Technically most platforms have a minimum of £100 (or $100). However, this wouldn’t be enough to earn a full time income. You can find detailed answers on exactly how much money you need to start trading here.
The answer is simply it depends on what you want to trade and how you want to trade. Stock markets are usual open ‘office hours’ if you want to buy and sell traditional stocks. As examples the NASDAQ and S&P is open 9:30am to 4:00pm, the DOW Jones is a bit later closing at 4:30pm. Alternatively the FTSE in the UK is open 8:00 to 4:30pm. You can see a full breakdown here. You can also trade CFDs which are open extended hours.
Once again, it depends! It depends on how much money you start with, how much money you will risk, how much time you put in and above all how good you are! You can learn about average stock trader salaries here.
Technical Trading FAQs and Questions
When the market is high or in times of uncertainty, you’ll hear a lot of people saying “to short”. But what exactly does it mean and how do you do it?
In short, it means betting AGAINST the market. You are betting that it will go down. I’ll let you read all about how to short the market.
Knowing the type of trades you want to do and your style is often one of the hardest battles. I can’t answer that in a simple FAQ so hopefully these articles will help you. Try Swing vs Day Trading and What Type of Trader Are You.
Great question! In short, bonds are a form of debt whereas stocks as you own part of the company. You can read a detailed explanation on the difference between stocks and bonds.
What FAQ for New Traders would you like answered?
If you’re new to trading or have other questions you’d like answered, let us know. We’d love to get them answered for you.