When people start with their stock exchange journey, it is customary to read everything available online and in print about the markets. Generally, having a firm command over financial management is crucial to succeeding in the stock market but there is only so far that an inexperienced trader or student of the markets can go. Ultimately, it boils down to the experts of the field who can help both beginners and veterans up their game and change the direction of their market success. They can help to maximize gains and minimize losses. Igor Cornelsen, the Brazilian businessman, is one such expert.
Counteract Inexperience With Safe Play – Beginners must have read this statement over and over again – higher the risk, more the gains. To a certain extent, it is true, at least in theory. However, Igor Cornelsen has an interesting point to make – people should also focus on the inverse of this statement. This part says that higher the risk, greater the losses. As risk increases, people have a greater chance of making big bucks but there is also a very real chance of losing everything and more. This is why it is the advice of Igor Cornelsen to play it safe in the beginning, at least until novice traders understand how the market works.
Understand The Value Of Demo Accounts – Most online brokers offer their traders a demo account which comes free of cost. In this account, beginner traders can try their hand at the stock exchange without involving real money. Basically, the conditions used in the demo account are the same as the real market and so are the ups and downs. What’s different is the money – these accounts use fake money to help the trader get acquainted with the stock market. Igor Cornelsen said on newsvine he believes that traders should master their basics using these free demo accounts before they take the plunge into real markets with real money.
Don’t Bet What You Can’t Lose – A lot of beginner traders according to bizjournals.com have a tendency to put in more money in the stock exchange than they can afford to lose. Igor Cornelsen warns against such a trading style, especially to novice traders who have one big win in the beginning. It is human nature to try and maximize gains and that is fine until the losses are affordable. As a tip, traders should always set a ceiling limit for themselves and stick to it religiously. Otherwise, they would find themselves with losses piling up and no gains to show for it.
With these tips, stock traders can ensure that their start is a rosy one and they can still keep their trading safe. Igor Cornelsen says that eventually, traders can take more risks as they evolve and learn more about how the stock market functions.