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Are you a newbie in the trading space? Just starting out and you are currently looking for the right place to get information about the financial market? information overload got you scared and confused probably don’t even know where to start.

No need to fret as trading could be overwhelming. The financial market is a market where securities, stocks, currencies and valuables are traded. It generates a lot of returns with the right kind of attitude and strategy .

A lot of loss could also be incurred if you enter the wrong trade or make a wrong move especially when you don’t know what to do. I too started as a newbie in the market and every single time I made a loss, I learnt something. when you venture into the financial market, you will discover a lot of strategies and its left for you to choose which strategy is more adaptable to you. Before entering the market, it is important to get yourself prepared by studying the market, staying up to date on news and of course monitoring the stock you wish to trade. Reading and research is necessary for informed decision and staying current on information in the stock market.

How to get yourself prepared for trading.

Wanting to trade as a result of the numerous benefits attached is an entirely different game from trading itself. Before venturing into the financial market, there are a couple of things that you need to do, i. e prerequisites of trading, some of them include;

1. Take a course on trading;

This is the first step to trading, getting a full overview of the stock and trade market. it is very important to get trained before entering the financial market. Having the right understanding and in depth knowledge in order to be successful in this field. A lot of people invest money into the stock market with little or no knowledge of how it works because of greed and the desire to get rich quick. Thinking the trade market is a poverty alleviation scheme or a get rich quick process its important you take a course on trading so you understand trading from the perspective of someone who already does. Taking a course on trading helps you to understand the complete technique used in trading and tools that helps in the trading process. Providing you with an indepth knowledge of different strategies used so you can decide which strategy is most suitable for you depending on your personality, life style, and resources available at your disposal.

2. Register on a trading platform.

This is a platform where all your trades will be carried out, a trading platform is a software that helps you to manage opening, closing and market position through a broker. When deciding between trading platforms, traders and investors need to consider a number of factors.

(a)fees involved and the features available for traders usage

(b) the nature of stock you wish to trade on.

(c) Nature of your investment goals. If it’s a short or long term.

(d)customer reviews and guarantee

3. Define your goals and develop a plan.

Define your goals and what you hope To achieve at the end of a trading period while developing pathways to reach these goals. Setting goals helps you to see clearly , giving you direction while managing your reasources ( time and finances) in the best possible ways to reach these preset goals. Choosing a strategy that best suits your personality gives you a better chance to stay in profit as a trader. Your strategy should be tailored towards your goals Picking a strategy involves understanding your level pof risk and what you can stake, I find it helpful when I start by picking one stock and analysing it, using trading charts to arrive at an informed decision.

4. Practice with a demo account.

its necessary you practise your trading skills with a demo account to avoid unnecessary loss on your main account. But take note, not all trading softwares give that initial bonus to perfect your trading skills.

Having understood the prerequisites of trading, its pertinent we delve into the strategies that are beginner friendly.


Scalping involves taking very small profits, repeatedly. Trades last from seconds to minutes. Scalping is a trading strategy that attempts to make many profits on small price changes. Traders who implement this strategy will place anywhere from 10 to a few hundred trades in a single day in the belief that small moves in stock prices are easier to catch than large ones.

Day trading

Day trading is all about buying and selling on the same day, without holding positions overnight. Compared to scalping, this style calls for holding positions for minutes to hours. A day trader closes out all trades before the market closes. Most day traders use leverage to magnify the returns generated from small price movements.

Momentum trading.

In momentum trading, the trader identifies a stock that is “breaking out” and jumps on to capture as much of the momentum on the way up or down as possible. They focus on stocks that are moving significantly in one direction on high volume. The typical time frame for momentum trading is several hours to several days, depending on how quickly the stock moves and when it changes direction.

Swing trading.

Swing trading is the art of capturing the short-term trend. It is a style of trading that attempts to capture gains in a stock within one to seven days. Swing traders use technical analysis to look for stocks with short-term price momentum. These traders are not interested in the fundamentals or the intrinsic value of stocks, but rather in their price trends and patterns.

Position trading

Some actually consider position trading to be a buy-and-hold strategy and not active trading. However, position trading, when done by an advanced trader, can be a form of active trading. It uses longer term charts from daily to monthly in combination with other methods to determine the trend of the current market direction. This type of trade may last for several days to several weeks and sometimes longer, depending on the trend.