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Hey Aviators,

Have you ever thought about investing your money, buying cryptocurrency, trading with assets but you do not have any clue how to get started? Every beginning is difficult, especially when it involves your savings because nobody wants to lose money he/she worked hard for. In this blog post I am giving you 10 tips on how to get started and how you can become a successful trader. In the beginning, it is vital to follow guidelines which set the foundation for a profitable investment. 

I am relatively new to the stock market and trading business. During the corona crisis, I started to research more to increase my knowledge about investing. It is a very complex topic and to really understand the world of finances it takes years. Luckily, finances have always been an interest to me since my dad works in this area. And I worked in an investment company during my high school years.

 

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Ein Beitrag geteilt von Patrick Biedenkapp | Captain (@pilotpatrick)

Become a successful trader

I decided to take the step to invest my money at the beginning of this year. Maybe you feel the same? Now I am kind of mad at myself that I did not start earlier. It was a great coincidence that the Social Trading Platform NAGA reached out to me and asked me if I wanted to collaborate with them. For a few months now I have been presenting the benefits of this trading platform to you on my Instagram, and why you should consider investing to become a successful trader. 

1. KNOW WHAT YOU ARE DOING

Inform yourself, build up your knowledge, stay up to date. Lacking knowledge about the stock market and their different products increase the risk of losing money. Before you order stocks of a certain company, read their analysis thoroughly and follow their share price. This will lower the chance of disappointment.

Nowadays people invest just because it is a trend at the moment without knowing anything about the stock or crypto currencies. According to the CEO of NAGA, Benjamin Bilski, you should invest a lot of time and several thousands of Euros in your education. Please find my interview with Benjamin here or find it below in this article. It is very educational and helpful for all beginners!

 

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Ein Beitrag geteilt von Patrick Biedenkapp | Captain (@pilotpatrick)

2. FIND A TRUSTWORTHY TRADING PLATFORM 

We all want our money to be safe. Maybe it is a wise idea to open up several depots in case your investments bust the margin over 100,000€. Basically, all banks within the European Union (EU) have a deposit insurance of 100,000€ per client. So in case, the bank goes bankrupt the government will refund your money. 

Depending on your needs there are different trading platforms. NAGA is quite special since it is a social trading platform where you can connect with other traders and share news and tips. So it is like Facebook for Finances. Additionally, they offer their traders an auto-copy function which allows them to follow the investment of other successful traders automatically.

3. DIVERSIFY AND DO NOT GAMBLE

I don’t recommend investing in just one asset, crypto or other financial product. On one side you could maximise your profits but on the other, the chances are higher to lose money as well. The goal of success is to diversify your depot. Different branches, companies, services, products, etc. There is no limit of different stocks you can hold in your portfolio. But after 30 different stocks, it makes sense to invest in Funds or ETFs. (Exchange Traded Funds / Indexfonds. Of course, you can also gamble with fiance products but like in a casino the risks of losing everything are very high.

How to become a successful trader

4. INVESTING IS DANGEROUS 

Investing is dangerous. No investment is risk-free. But do you know what else is dangerous? Losing your money to inflation, living paycheck to paycheck, relying on being given a state pension when you’re old, being at the mercy of your boss. Life is dangerous. Investing is a worthwhile risk and not doing anything with your money is risky!

5. INVESTING IN CRYPTO IS VOLATILE 

Absolutely. The price for Bitcoin has shown this. A price correction of 40% within a few weeks after it reached an all-time high. Be very careful when investing in crypto and know which crypto you buy. There are a lot of coins out there which do not resemble a real value so it is more like gambling than investing! On the other end, we are in the very beginning of crypto currencies and the potential is extreme. So it does make sense to invest 5-10% of your assets (according to the CEO of NAGA) in crypto.

How to become a successful trader

6. START EARLY AND IT IS NEVER TOO LATE

It makes absolute sense to start investing at an early age. Even when you have only 50€ extra in a month. Do not invest it in a new computer game,  invest it in the company which produces the games. The share price will increase over the years. The price for the game will lose money. Here is a simple example: Investing 50€ every month for 30 years into an ETF (with a return of 7% per annum) you could grow your depot to 58,825€ and you just paid 18,000€ into it.

7. DO NOT ACT BECAUSE YOU THINK YOU MISS OUT

Do not just follow trends without knowing any background and knowledge information about them. It is wise to invest in companies you like and would like to support. Which products and services do you use in your everyday life? Think about companies which will still exist in the future and those who will grow because society needs them.

How to become a successful trader

8. HAVE YOUR EMOTIONS UNDER CONTROL

Trading can be an emotional rollercoaster ride. Happiness can soon turn to doubt, anxiety to hope. Investing can be very hard but it is important to sustain your clear mind and not to be controlled by your emotions. When it is going down it eventually goes up again – like during turbulence on a flight.

9. MONEY IS MONEY AND NOTHING MORE

Money is money and nothing more! Of course, we need money to pay our bills but money consists of digits only and they do not make us happy in the long term.

10. DO NOT INVEST ALL YOUR MONEY

You should not be too eager while investing. The money for investments should be “superfluous”. Neither should you need it at the moment nor should you plan with it.

If you would like to get started with absolutely zero risks, you can register with NAGA and create a DEMO account with 10,000€. This allows you to invest fictitious money to see how you would perform. This way you can exercise, learn and observe. 

Please do not forget to like the blog post on how you can become a successful trader. Let me know if you are trading already in a comment below. 

Happy landings and happy investing!

Your PilotPatrick 

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