9 essential tips to successfully start your trading adventure
Only trade with money you can miss
Lesson one might be the most important: you only trade with money you can miss. So not your grocery, rent or utility funds. Nor do you invest your backup stash for emergencies or the cash you’re supposed to take your dog to the vet with. You also never borrow money from banks or loan sharks. You’ll need your fingers in the future.
Determine your trading budget
The BOTS app made trading available to everyone. Everyone that has €50, that is. You can decide to trade by topping up every month, or just give it a go with a €50 start and see your investment grow in the months to follow. Do, however, determine your trading budget before you start. Knowing how much you’re able to invest gives you peace of mind and allows you to adjust your budget without stress if your situation were to change.
Practice makes perfect
You don’t throw a kid in the pool before you let him take swimming lessons, right? Nor do you start trading without practising a bit. Start with low investments, or even better: follow the bots in the BOTS app before you let them work with actual money. When you think you’re ready, start with a small amount of ‘practise money’, pick a bot that suits you, and see how it goes. It gives you a chance to see how well you manage your impulses during fluctuations in the market and help you determine a risk level that suits you.
You are in it for the long run.
Trading comes with ups and downs. Literally. One moment the market goes up, the other it drops. The shorter the period you are trading for, the less time the market has to recover. Give it time, and don’t panic during the first drop. The market will most likely recover, as it always does!
Be aware of the costs of trading.
With traditional trading, you pay a certain amount per transaction. This can either be a fixed charge or a percentage of the value of the transaction. If you trade regularly, these costs can turn out to be very high. We at BOTS by RevenYOU strongly believe that you should not be the one paying for your broker’s new car. That’s why we charge 0.0002 x your investment per transaction. Part of this goes to the bot developer, and part goes to us to maintain the BOTS trading platform. Fair enough, right?
Determine the risk you are willing to take
Not everybody is suitable for dealing with high risks. How would you respond if the market drops 10% overnight? Would you have trouble sleeping and bite your nails to the bone? Or would you just get on with your day as if nothing happened? Take a good look in the mirror and always take your own reaction into account when you start trading. To help you on your way, all bots on the BOTS trading platform have a risk score. This can vary between 1 (low risk) to 12 (high risk). After a good look in the mirror and a glance over the risk scores, you should be able to determine what risk level suits you best.
Spread your risk
There is no such thing as risk-free trading. It always involves some risk. However, you can reduce these risks by spreading your investment. With the BOTS app, you’re able to choose between a wide range of bots. So why not select three bots instead of one? By investing in multiple bots, you are, you guessed it: spreading your risk!
Start trading every month.
As explained before, you are in this for the long run. After you’ve practised, it’s time to start investing every month. Always keep the first tip in mind though, and never use money you can’t miss! The good thing about trading monthly is that your investment will grow each time you make a deposit. And with increasing investment, you might just see increasing returns!
Ask for help if you need it.
If you are new to trading, lots and lots of information will come your way. Like, a loooooot of information. Even though it’s essential to keep yourself informed, you could quickly get stuck with doubts or questions. So, do you have unanswered thoughts wandering through your mind? Check the internet, browse through our YouTube channel, join our Discord, or contact us! One phone call, and we’ll help you on your way again.
There is no such thing as risk-free trading. It is possible to lose (part of) your stake.