Nathaniel Glas, financial trader
Nathaniel Glas is a major financial trader in the investment world. However, he did not get to be where he is in a day. It took time and hard work. Here are some tips on how one can become a successful financial trader like Nathaniel Glas.
How To Become A Trader
• You Need to Gather Knowledge
Besides basic trading knowledge, you also need to ensure you keep abreast with what is going on in the financial world. In some cases, you might need to keep up with geopolitical news as well since it might also affect stock prices. You should mainly keep up with things such as interest rate plans by the Federal Reserve, the economic outlook and much more. Have a wish list of stocks you might want to trade in and inform yourself about these companies.
• Have Some Funds Set Aside
As part of your financial trading, you will need to have some capital that you can risk on each stock. Ensure that you know how much you can realistically risk. It is important not to invest all your money in one stock no matter how good it looks. Keep in mind that while stock trading is not gambling, there is always a chance of things not going how you expected.
• Have Time Set Aside
Trading in the financial markets is time-consuming. You need to give up a lot of time for you to make the right trades. This is something that you need to do full time and not as a hobby. You need to track the market and see opportunities early. The main issue with these opportunities is that they do not usually last long.
• Always Start Small
If you want to go big like Glas, you need to start small. For beginners, the focus should be on about two trades daily. It is now possible to trade in fractional shares, which means that you can trade even less money. Today, there are brokers that allow you to buy as small as just a fifth of one share.
• Stay Away from Penny Stocks
While you want to start small, do not go as low as penny stocks. The penny stocks are usually illiquid, and the opportunities to hit the jackpot are usually nonexistent. When stocks go below $5 a share, they are usually delisted from major exchanges. They are often only accessible on OTC trading desks. Unless you can see a good opportunity after a lot of research, they are not worth your time.
• Time Your Trades
Most orders placed by traders usually start to execute when the market opens. This leads to a lot of volatility in the morning. A seasoned player can see the pattern even early in the morning and make the right moves. This might not be the case for a newbie. It is important to wait for a few minutes, such as 30 minutes before you start to make any trades. The least volatile time is in the middle of the day. At this time, it is easy to read patterns and make the right choices. Though the rush hours offer you great opportunities to make trades, it is crucial to avoid them as a newbie. Take baby steps in the middle of the day for you to understand how things work.
• Limit Orders to Reduce Losses
Limit orders are a great tool for minimizing losses. With a limit order you set when to buy and when to sell, this way, you can avoid being left with duds. With time, as you experience in the markets grows, you will be able to make better trades with limit orders. This is a strategy that some of the biggest names have mastered. Start early, and you will get good at it with time.
• Have Realistic Profits Targets
Your strategy should not be all about winning. In most of the trades, you will only succeed in about 50% of them. The aim is to ensure that you are making more on successful trades than you are losing. Ensure that you limit the risk of each trade. You will also need to have clear entry and exit strategy that helps you to avoid losing money.
• Be Calm
Financial markets can be testy. When they really push you, try to stay calm and avoid any rushed decisions. Ensure that fear, greed, and hope are kept at bay. Never make any decision based on your emotions. There should always be logic to each move.
• Have a Plan and Stick to It
Good traders always move fast, but they do not always have to think on their feet. This is because they have a track laid out that lets them run fast. The goal is to organize a strategy and stick with it even in the hard times. You can analyze it and switch it up occasionally. However, during trading, you must have a plan that is guiding your actions. Otherwise, you might end up losing everything you worked so hard to attain.
With these simple tips and a bit of financial training, you can be as good as the top traders in the world. Read them and try to utilize them when you immerse yourself in the financial markets.