Nowadays, investments seem to be the thing that everyone is talking about. Trading is a particularly hot hub and about 55% of the Americans invested in stock market trades over the past three years.
That being said, trading in Singapore is also gaining more and more popularity, and people are starting to become curious. But as a beginner, how can you start making some cash? Well, here are some tips for you.
1. Compare Trading Platforms
As a beginner, you need to reap the most out of the trading platform that you are using. There are countless platforms out there, so you might want to make a review of their ease of use, fees, and security. These fees aren’t always bad (they are charged for a reason), but make sure they do not eat from your profits. In Singapore, you will need to open a CDP account to trade in the Singapore Stock Exchange market.
2. Choose the Right Assets
Trading assets come in many shapes and forms, so you have to choose the one that matches the risk you can afford to take. Typically, higher risks come with the highest possible returns. Bonds are seen as the low-risk type of assets, whereas those willing to take a risk might want to consider Forex trading, equity or cryptocurrency.
3. Check Courses and Webinars
Let’s just face the facts, trading in Singapore is not something you can just do overnight. You need to do some research – to work for it. Webinars and courses can take you through the basics, and some of them may even give you some practice on the matter. Remember to do your own research before signing up! There are also free tutorials on YouTube which teaches you how to trade. Check https://www.liteforex.com/ms/blog/for-beginners/apa-itu-forex/ for details on Forex.
4. Limit Your Trades
When trading, you might want to create a limit and stick with it. There isn’t exactly a rule on how much you should trade to be successful, but you should not trade more than you can afford to lose. When the prices go up, even small trades can prove to be winning.
Find out how you can place a limit trade on DBS Vickers here.
5. Consider Diversifying Your Portfolios
A lot of people like to keep their eyes on the prize with just one asset, but if you wish to mitigate potential losses, you should consider multiple assets. One asset should act as a backup for the other. For example, if your assets were only in the travel industry, the COVID lockdowns could have caused significant losses for you. This is why you need to diversify your portfolio and invest in other sectors too.
6. Find Your Perfect Trading Style
Everyone has a different amount of time availability. For example, a retired individual might have more time to trade as compared to someone who works all day. Choose from the four types of trading (position trading, swing trading, day trading, and scalp trading), depending on the amount of time you have available.
7. Don’t Copy-Trade Blindly
As a beginner, it’s common for you to copy the trades of someone with more experience, but even that should be taken with a pinch of salt. Always research every move you are planning to make in your trading game. It’s best to come up with your own trading strategies after you have started to trade for a while. You will get better at it so don’t give up!
Here’s the Bottom Line:
Trading in Singapore might take a bit of practice, but with time, you’ll gain experience. Hopefully, our tips will prove useful on your trading journey.
(Contributed by guest writer)