Questions To Answer To Know Your Trading Needs

Questions To Answer To Know Your Trading Needs

One of the most important things to consider at the start of your trading journey is the trading platform you choose. And your choice of the platform depends on the investment goals you have and your current position on the learning curve. Based on the trading path you plan to follow, there are several questions you will have to answer. For now, here are four major questions whose answers will help you determine the kind of trading platform you need. So, without further ado, let’s get started. 

Are you a passive or active investor? 

Are you someone who plans to be absolutely hands-on in executing swing or day trades? Do you want to eventually leave that 9-to-5 job and become a full-time investor? Rather, would you want to look for a couple of solid investments to hold on for the long-term duration with no or little day-to-day interaction? 

What type of trades do you plan to carry out? 

You can carry out different types of trades on something like a Binge trading platform but there are a few factors to consider in this matter. Are you the kind of investor who knows what they want and only needs a trading platform to make it quick and easy to execute those trading plans? Or, are you looking for a broker who has a wide range of resources to let you recognize the opportunities? 

What are the types of securities you want to pay attention to – ETFs, mutual funds, or stocks? If you are going a step ahead, do you want fixed-income security and futures, too? Have you thought about margin trades? 

What is the kind of help that you want? 

Are you planning to take the DIY route, know about interpreting financial data and charts, and carry out your trades, or are you looking to hire a professional? Where do you stand on that learning curve if you plan to do it all yourself? What kind of resources do you require for enhancing your knowledge? Would online resources be enough for you or you’ll require easy access to the support personnel? 

What are your investment goals? 

What are your reasons to invest? Do you plan to supplement the regular income for improving the present standard of living? Are there specific expenses or events that you plan to fund? Is trading going to gradually become your main source of income? Are you building your savings for retirement through trading? If yes, do you have your retirement account already or do you plan to open another one? What kind of brokerage rates are you looking for? 

The bottom line 

The important thing to remember is that these questions do not have any wrong answers. You need to be honest about the amount of effort, energy, and time you can put into all your investments. Now, these answers might change over time, and there is no harm in that. It is impossible to assess your goals and needs for the rest of your lifetime. So, start where you are at present. 

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