What does it take for new investors to excel? That’s a challenging question, and the answer depends on several unique aspects of each person’s abilities and preferences. In fact, there are hundreds of niches and speciality areas within the vast universe of investing, and each one has its own long list of requirements for success. But, it’s important to remember that there are a few common ground principles that serve as a bedrock of profitability for new trading enthusiasts. Those who have never bought or sold securities online need to practice on a simulator within a demo account as a first step.

After that, it’s critical to learn safe money management techniques in order to preserve capital. Too many first-time traders fall into the trap of overspending on their initial trades. It’s also wise to investigate the potentially lucrative practice of operating an affiliate program and delivering new clients to an already established broker. If you intend to transact business for your own account, you must learn how to select a reputable broker before moving forward. Likewise, many people who get into part-time or full-time investing decide to specialize in a narrow niche or in one company’s stocks or shares. Specialization is an effective way to focus on a single area of the market and learn as much as possible about it in a relatively short period of time.

Finally, it’s well worth anyone’s time to study the basics of technical and fundamental analysis. The two pillars of trading theory form the most vital background for those who want to eliminate guesswork and take positions based on objective measurements and time-tested techniques. In no particular order, the following are five of the essential suggestions to help people get started in the investing realm.

Explore affiliate programs

Trading affiliate programs are one of the simplest ways to get involved in the world of investing. Affiliate members avoid the risk of putting their own money on the line. They also have the unique advantage of earning a generous commission or another type of payout for every new client they deliver to the broker with whom they partner.

Some companies with affiliate marketing programs in the trading industry include options such as partnering with a broker or trading platform or promoting educational courses or trading tools.

You can register as one of AvaTrade’s affiliates, known as AvaPartners, and immediately begin participating in reward opportunities. Plus, each AvaPartner works with a dedicated account manager, gets access to robust marketing materials, and can learn more about the process by reading content on the AvaPartner blog, a space that offers countless tips, suggestions, and strategies for new and established affiliate partners.

Use simulators and demo accounts

If you decide to take part in active trading by opening your own account with a broker, spend at least two weeks using a demo account and a trading simulator to learn how to place orders, set stops, and exit trades. Even experienced traders return to the simulator from time to time to hone their skills and learn new ways of placing more complex orders.

Practice safe money management when trading

It’s critical to protect your account balance. One of the most effective ways of dealing with this common challenge is to set a limit on each trade. If you follow the famous two-percent rule, you never take a position that exceeds two percent of your available capital. If your brokerage account shows a balance of €5,000, the two percent restraint will limit your buying power on a given transaction to €100.

Specialise

It’s human nature to want to specialize. That’s why many trading enthusiasts choose to work with just a few corporate stocks, a single commodity, a handful of forex pairs, or noting buy gold-backed assets. There are various ways to specialize, but they all include in-depth research. The payoff is that you’ll soon develop a level of expertise far greater than usual and can use that power to your advantage when taking positions. For those new to the practice, consider learning how to buy and sell traditional corporate stock shares. The skills you develop while engaging in ordinary transactions will serve you well in most other niches and asset classes, no matter what you choose as your specialty.

Learn how to choose an online broker

Working with a reputable broker who offers the kinds of assets you prefer is one of the pillars of trading success, especially for beginners. It’s also essential to find a broker whose site has an extensive supply of educational materials for newcomers to the world of trading. Keep in mind that many brokers cater to new investors and traders, so spend time investigating and doing targeted research before you decide where to hang your hat.