What are the most important first steps that novice traders may consider in order to learn how to trade on IQ Option? If you have been wondering how to start trading, this article will give you an idea of what you may consider while using the platform. From registration, to making the first deal, this short guide may enhance your knowledge accordingly. There are only three steps on the way to becoming a trader and an IQ Option platform expert.
1. Learn about all the available trading instruments
The very first step in getting acquainted with IQ Option, after you have registered an account, is to learn what the available trading instruments on the platform are. To find out, you may open the trade room and check the asset menu.
The general idea of all instruments is CFD trading, which means that by opening deals you do not actually acquire the asset, but make a prediction regarding the price development. The outcome will depend on the direction the price goes in and your prediction — whether it was correct or not. Forex, Crypto, Stocks and Commodities — all the available instruments have corresponding video tutorials which you can find in the section of the same name.
When deciding which instrument you wish to try out, read as much information on it as possible. You can find out much more details in order to enhance your trading knowledge by reading this blog’s articles, watching video tutorials and guides to help you understand how it works.
2. Market analysis and technical tools
One more thing to do before getting straight into trading, is to learn to analyze the assets. There are two general ways to do so: fundamental and technical analysis.
Fundamental analysis concentrates on financial and world news, for example, earnings reports, presidential elections, conferences, or even natural disasters and weather anomalies. All kinds of events can influence the price of the asset, so it is important to check the relevant news before trading, in order to understand where the price might be heading. This type of analysis is largely used by long-term traders, however, it might be helpful to any trader that wishes to understand the overall tendency of the price. To check such events right in the trade room, open the “Market Analysis” tab.
Technical analysis relies on past events and past price action to attempt to predict the future (however, past performance is not an indicator of future performance). It uses special calculations, indicators, which are applied to the chart and assist in finding the trend, its strength, reversal points, volatility and volume. Indicators can be used alone or in combination, depending on the trader’s goals. Some of the popular combinations are described in this article: Top 3 Indicator Combinations.
It is important to remember that there is no analysis type that will provide a trader with 100% correct predictions. This is why many traders mix technical and fundamental analysis and use several sources of information as possible in order to make a well balanced decision.
3. Try the practice account
When you register on IQ Option, you automatically get a practice balance, which you can switch to in the right upper corner of the trade room. This money is free and can be used to try out any asset, strategy or idea possible. Of course, the money is given only to practice with, so you cannot withdraw it.
The demo account is handy: since all the data and charts are identical to the real balance, traders can plan their trading routine ahead, without spending any funds on practicing and without any risks. This money can be replenished as many times as needed, so you will always have the opportunity to switch to this demo account. The practice balance is a perfect opportunity to try out the technical and fundamental analysis and see what works best for you. Many of the approaches and strategies described on the IQ Option Blog can be tested there without any extra costs.
Only three steps are needed to enhance your trading knowledge and approach: learning about the trading instruments, exploring analysis options and practice, and none of these steps require deposits. You have all the necessary tools and resources to learn how to trade and exercise right now, even before you decide to switch to real trading.