Introduction

        As an aspiring stocks or options trader, it is normal to feel overwhelmed and confused, not knowing how to create a career or at least a routine in this field. The internet is filled with various recommendations for strategies, techniques, and methodologies that people share via different social platforms, including blogs, YouTube videos, tweets, and Instagram posts. The biggest challenge is that some of the material you are likely to see on the internet is usually unverified and sometimes malicious. Some individuals who post videos with "options trading secrets" or such only do so to generate traffic for their content so that they can monetize views, and they do not have a keen interest in either stocks or options trading. This post is aimed at providing option trading beginners and stock traders with introductory tips that may be useful in the process of becoming a good trader in either of the two arenas.
        First, you have to understand what is meant by stock trading. It is simple enough as it involves the buying and selling of financial instruments like shares to hold on either a short or long-term basis. Remember, the goal is to buy at discounted prices and sell at premium prices (simply buy-low and sell-high). However, stocks and options trading involve significant risk, which is unsuitable for everyone.Mitigating this risk will require you to learn to trade and gain the essential knowledge needed to analyze and execute trades. That said, it is a lucrative industry as the potential for loss is proportionate to the potential of raking in huge profits. If you look up the salary of stock trader, you will come to learn that some stock traders make millions a month and live an affluent lifestyle. The good news is that you, too, can learn the skills required to make some profits from stocks and options trading, even though you should have realistic expectations and actively manage your risk exposure to avoid incurring big losses. A good place to start your journey starts with finding a suitable stock broker who provides trading education. Some brokers provide their clients with educational blog sections, seminars, networking events, video lessons, live webinars, and trading signals which you can examine and learn how to analyze stocks. You can also sign up for a mentorship course with well-known stock traders with verifiable track records. You can check reviews people share on sites like Trustpilot expressing their experience with your mentor of interest.
       Select a Stocks and Options Broker that Offers Favorable Trading Terms and Conditions
One's choice of a broker for stocks or options determines success or failure because unfavorable trading terms and conditions sabotage efforts to grow a portfolio.
        First, relevant authorities must license and regulate the stocks or options trading brokerage firm. Non-regulated brokers are risky, especially because some may decide to fail to payout earnings or impose hidden charges and impose tough restrictions whereby one has few options at their disposal. An example of such restrictions is that traders cannot hold their trades overnight. In other cases, the broker might allow traders to carry forward trades but charge exorbitant commission fees. Therefore, paying attention to commissions on investments you are interested in before investing is important.
        Another consideration to make is account fees. Check for the charges the broker levies against you on deposits, withdrawals, swap transactions, and other specified costs associated with the account.
Remember to check the minimum settings on the account in terms of deposits and withdrawals. You may end up depositing $100, yet the minimum deposit is $500. This means that you may not be allowed to trade on the account until your total deposits reach the minimum threshold the brokerage entity sets. Withdrawal limits may also affect your access to funds when you need them. Being aware of such parameters allows for proper planning of finances.
It is prudent to take advantage of such features if there are ongoing promotions, such as bonuses on deposits. It is common to find promotions of up to 30% bonus on deposits which is essential in expanding your trading capacity.
        The best trade platform is one with a track record of reliability. As mentioned, one should investigate whether the broker they are considering using has any fraudulent activity or has been flagged as a scam by authoritative broker review websites. Testimonials from existing customers can also be relied upon as indicators of a stocks or options investment account's legitimacy and reliability.
If you are a cryptocurrency fan, you may want to trade Bitcoins or have your account balance in any other cryptocurrency. It is also convenient for stocks or options trading beginners who only have funds available in the form of crypto.
        Although mentioned earlier, one should also consider the features, tools, and education any particular trading platform provides. Once you have landed the best stock trading platform, it is time to take the next step. Note that the broker may offer several account options, and you should compare all available options and settle for the best broker account on offer based on the features and benefits attached to it.

Paper Trading

       Paper trading involves analyzing price charts and then writing down the trades' opening price, stop-out levels, and potential exit levels instead of executing live trades on the trading app or platform. It is a way to test different trading strategies and settle for one that works for you. Two traders can use the same trade analysis technique and have different results. There is more to stocks and options trading than analysis criteria. The best way to improve in trading is to practice using paper trading and note mistakes you make. This will help you to refine your approach and become better tuned to what works for you as a trader. The psychological element of trading cannot be taught by word of mouth and can only be honed by actively trading in the markets and making adjustments geared towards improvements. Once you create a consistent trading plan, you may deposit real money with your broker and start trading for profits. The transition from paper to live trading is usually not easy, but it is necessary. You will feel the fear of having real money on the line. If that happens, remind yourself that you are competent since you have been practicing on paper and that there is no reward with no risk.

Options trading

        Option binaries type of trading is significantly easier than trading stocks. If you get a price chart on your platform, you have to decide whether the price of a given instrument will end up above or below the current price upon the expiry of the options contract. The trade may expire within a minute, an hour, a day, or a month and any time you choose before entering the trade. If you predict correctly, the broker pays you a certain percentage of your stake as indicated by each options contract. The trader can improve their odds of success by analyzing the instrument's price trend before taking a trade. A simple example of analysis is using moving averages. A trader has to add the moving average (MA) indicator to the price chart. For example, one can use MA 25 on a five minutes chart. When the price is above the MA 25, the market is trending downward, and they can place option contracts based on the current bias. If the price goes above the MA 25 indicator, the bias has shifted towards an uptrend, and the trader can adjust their option entries accordingly.