Investing in exchange-traded assets and speculative trading on Forex requires not only capital available for investments. They also require in-depth knowledge, a variety of tools, and, what is even more important – a willingness to spend nerves and time.

In addition, trading is impossible without a reliable broker who becomes an intermediary in transactions between the trader and the exchange.

Capital and risk management

Trading on the stock exchange is always a risk. You should take into consideration your financial capabilities and do not risk the money that you cannot afford to lose. Remember that you can lose deposits any time, and this loss should not critically damage your budget.

Pay attention to risk management and proper capital management. The stock exchange is not a way to get rich quick as well as it’s not a game of chance. If you want to get rich quickly and easily, an exchange and safe investments are not an option.

Do not risk everything at once, evaluate the level of risk and potential profit, use stop signals to fix profits and minimize losses. Control your emotions.

Find a trusted broker

Broker is not only an intermediary between you and the exchange, but also a pledge of financial safety and potentially profitable trading.

We recommend you study the ratings of brokers carefully, check the reviews about them on rating sites like Traders Union. Examine reviews and comments, but don’t trust them blindly.

Verify the broker yourself, ask for licenses, conditions, and risk insurance. Check out who issued the license, who regulates its activities and in which country the broker keeps clients’ money. Offshore is supposed to be more unsafe. The term of a broker’s work is also an important factor.

Check carefully what software the broker uses, what spreads and commissions the broker has. Check whether the transmitted stock signals are reliable. Make sure the orders’ execution format is appropriate. If the broker’s interests conflict with the trader’s interests it is unsafe for your deposits as well.

Learn how to trade with a demo account

Do not make a deposit and do not bet real money if you don’t actually know all the exchange mechanisms, if you are not familiar with the methods of analytics and market forecasting. Find a broker with a demo account and a well-known trading terminal.

Trading is not easy

Also, don’t assume that trading is easy. You have to study a lot, be able to analyze massive amounts of information, use programs, fundamental and technical analysis approaches. Trading, for sure, is not for everyone.

An exchange is a zero-mass market. This means that the profit is formed due to the monetary losses of other traders. Therefore, the probability of losing money if you are a novice investor is quite high.

If you cannot devote daily time to studying and deliberate trading, consider other investment options. If so, you may be better off investing in stocks or businesses instead of foreign exchange deals.

Trading is not a magical way to get rich. Many traders lose money due to inaccurate expectations, poor training and lack of knowledge.


Trading in Forex or the stock exchange can theoretically generate some income. However, it requires a rental capital, a reliable broker, knowledge and skills. You must have the skills to manage risk and capital and be ready to analyze the market – that is not as easy as you think.

Perhaps the stock exchange is not your way and you should invest the available money in other areas, in your business, your family, personal development, safer investment areas like blue-chip stocks, bank deposits or promising real estate.