HFM information and reviews
HFM
96%
FXCC information and reviews
FXCC
92%
FxPro information and reviews
FxPro
89%
FBS information and reviews
FBS
88%
XM information and reviews
XM
86%
Exness information and reviews
Exness
86%

3 Not-so-hot Tips for New Traders From


A new wave of investors, or collectively known as “Generation Investors”, has spurred into the stock market during the pandemic. Research conducted by the FINRA Investor Education Foundation (FINRA Foundation) and NORC at the University of Chicago found that market dips during the pandemic have made stocks cheaper to buy. This has allowed younger and new traders to start trading with small amounts.  

Here at Vantage, on the back of the pandemic, we have seen an actual increase in new and young traders. In an exclusive interview with veteran investor Jim Rogers, we had the chance to ask him for his opinion for new traders, as well as his thoughts on the current state of the market. Here’s what he had to say:  

For new traders just starting out on your trading journey, here are the words of guidance shared by Jim Rogers.  

#1 Stop looking for hot tips 

Many people think investing is boring, and they would prefer to get a hot tip that will help them to get rich in a week. However, Jim emphasised that rather than relying on hot tips, new traders should strictly invest in something they know a lot about. Everyone has something they are familiar with, whether it’s cars, fashion, or other products. Investing in something you’re familiar with is how you can have greater success in growing your money. This is because you will be able to have a better understanding of the product, industry, and potential growth of the company, 

“Give me a hot tip. I want a hot tip. Please stay away from hot tips. Please invest only in what you know” 

But what if I don’t have something I know a lot about? Jim’s point of view is to be patient and wait. As a new trader who does not know anything about trading, it is perfectly fine to do nothing, not enter the market, until you find something that you’re confident about or know fully about. Take this time to slowly learn and acquire more knowledge on the products that you are interested in. It might be a boring process, but this could be a necessary first step to your trading and investing journey.  

#2 Hunker down for a recession 

With the US market on its longest bull-run in history, we got Jim Rogers to share his views about the incoming recession on the horizon. Here are his thoughts on the upcoming recession:  

“This is not a bear market compared to some of the big ones, as I’ve been investing for a long time. In 2008, there was a problem worldwide because the debt was too high. Even China has enormous amounts of debt now, and for the past 25 years, nobody would even lend money to China. Now, the whole world has a tremendous amount of debt, and the US has become one of the largest debtor nations in the history of the world now.   All markets will be affected by this and will go down considerably. Many stock prices will go down 70-80% during this upcoming bear market, and many companies will go bankrupt during the bear market.”  

Jim also suggested that the bear market will go on longer than just a few months and will be expected to last at least 3 to 4 years. Bear markets are defined as a sustained period of downward trending stock prices. They are often accompanied by an economic recession and high unemployment.  

To help new traders further understand about recession, you can read some of our articles here:  

#3 Commodities as an alternate asset class 

Everyone wants to hear from the commodities guru, share his insights on commodities. Can commodities like gold and silver serve as a way to hedge against inflation? Do they have a place in this generation’s portfolio?  

“Hedging risk is always a smart thing to do no matter what, as long as you know what you are doing, as long as you get it right,” said Jim Rogers.   

As the demand for goods and services increases, the cost of goods and services will also rise. The price of commodities that are used to produce those goods and services will also rise. Here are Jim’s thoughts regarding the commodity silver and gold: 

“I own both gold and silver but I’m not buying either at the moment” 

If given the opportunity, he would look to buy more silver as the prices of silver are much cheaper on a historical basis. He is currently waiting for things to get more depressed in gold or silver and capitalise on the opportunity to purchase more.  Here are some of Vantage articles on commodities CFD trading to further help new traders understand better:  

One final piece of guidance from Jim Rogers: “If you get the price and fundamentals right, there is less risk no matter what you’re doing.”   

No matter the financial securities that a trader decides to purchase, buying at the right prices and conducting proper research on that product can make the trade less risky. If you’re ready to embark on your trading journey, you can start with a demo account that allows you to practise trading risk-free, with virtual funds of up to $100,000. Alternatively, you can open a live account to start trading the market when opportunities arise. James Beeland Rogers Jr., commonly known as Jim Rogers, is an American veteran investor, Chairman of Beeland Interests Inc. and financial author who co-founded Quantum and Soros Fund Management. He also launched the Rogers International Commodities Index in 1998. 

#source


RELATED

How to trade stocks and CFDs on stocks

We continue our series of articles on choosing a trading instrument. This time you will learn what CFDs on stocks are, how to trade them and how...

Exciting Benefits of Trading Forex

Forex trading is the exchange of one currency for another to generate profits. If you’re reading this, you probably know that and are now looking to choose between the existing options like stock...

Forex swap: what it is, how it is calculated, and what are swap-free accounts in Octa

One of the most misunderstood terms in Forex trading is swap or Forex swap. To trade successfully, you should understand what Forex swap depends on and how it is calculated. This article describes what a Forex swap is, explains its mechanics, and describes swap-free trading accounts.

What is Spread, and Are You Better Without It?

Spread is a central element in Forex trading. Traders are keen to know and ask a lot of questions about it. While spread exists in various sectors of the financial market...

A Beginners Guide To Pairs Trading

The ideal strategy is the one that allows a trader to make money in any market, regardless of whether the price is falling or rising. Such trading systems are called arbitrage trading systems...

Which Is the Best Forex Trading Course?

The world of markets and online trading has a number of particularities. Learning is a blessing. Knowledge is your driving force. Your personal improvement on an ongoing basis is an objective that ultimately aims to succeed in critical situations...

Addressing Trading Biases: Managing Psychological Factors In Day Trading

In the intricate world of day trading and investing, psychological dynamics play a crucial role in shaping decision-making and overall success. Traders, regardless of their level of expertise...

Negative Balance Protection: What Is It And How Does It Work

Contract for Difference (CFD) trading is a popular form of investment, but as with any investment, it involves a degree of risk. Managing risk in trading is critical to protect your capital...

How to Trade CFDs on Gold and Silver

Gold and silver have been chosen by traders for hundreds of years now. These metals are always in demand, especially from manufacturers of jewellery or other sectors such as the electronics...

Mastering Forex Trading: Time, Learning, and Success

Forex trading has emerged as a captivating endeavor, drawing individuals from diverse backgrounds into its dynamic and potentially profitable realm. For those considering entry into the world of forex trading...

Forex Market Hours

Other than being the largest and most talked about financial market out there, Forex has a very appealing characteristic - around-the-clock operation. Being available...

Dogecoin vs. Bitcoin: Which one is the Better Investment?

Dogecoin and Bitcoin are two well-known crypto assets. However, some traders may not know how to compare Dogecoin vs. Bitcoin, so knowing some of the significant similarities and differences...

How To Identify Strong And Weak Currencies?

Are you an ambitious, venture trader with a strong interest in foreign exchange trading? Read this article to get a better understanding of strong and weak currency...

A Guide to Trading EURUSD

EUR/USD is the currency pair which matches the exchange rate of euro (EUR) against the US dollar (USD). Traders can trade EUR/USD using financial derivatives like contract-for-differences (CFDs)...

The Ultimate Guide To Stock Investing For Complete Beginners

There`s hardly a single person today who has heard about the passive income that investing can consistently bring in. There are many examples: from the great financiers...

Why Choosing The Right Broker Is Critical

Forex trading is an equal opportunity vertical. There are no exams, no prerequisites, no prior experience needed to start trading. All you have to possess...

Invaluable Tips on How to Choose the Best Forex Broker for Beginners in 2022

Why do people want to start trading foreign currencies on the global market that is commonly known as Forex? Some are tired of their mundane jobs where they get paid peanuts...

Everything You Need to Know About Cryptocurrencies

The concept of money as we know it has evolved in recent years from purely physical money to a combination of the physical; digital representations of physical money...

Investing vs. Trading: What’s the Difference?

Over the past couple of decades, many people started showing interest in profiting from financial markets, whether through trading or investing. However, it has become evident...

Trading Metals: A Comprehensive Guide for Beginner Traders

Metals trading, encompassing a spectrum from gold to nickel, offers unique opportunities in the financial market. For beginner traders, metals provide a stable, diverse, and intriguing avenue for investment and speculation...

Vantage information and reviews
Vantage
85%
FP Markets information and reviews
FP Markets
81%
IronFX information and reviews
IronFX
77%
T4Trade information and reviews
T4Trade
76%
Just2Trade information and reviews
Just2Trade
76%
FXNovus information and reviews
FXNovus
75%

© 2006-2025 Forex-Ratings.com

The usage of this website constitutes acceptance of the following legal information.
Any contracts of financial instruments offered to conclude bear high risks and may result in the full loss of the deposited funds. Prior to making transactions one should get acquainted with the risks to which they relate. All the information featured on the website (reviews, brokers' news, comments, analysis, quotes, forecasts or other information materials provided by Forex Ratings, as well as information provided by the partners), including graphical information about the forex companies, brokers and dealing desks, is intended solely for informational purposes, is not a means of advertising them, and doesn't imply direct instructions for investing. Forex Ratings shall not be liable for any loss, including unlimited loss of funds, which may arise directly or indirectly from the usage of this information. The editorial staff of the website does not bear any responsibility whatsoever for the content of the comments or reviews made by the site users about the forex companies. The entire responsibility for the contents rests with the commentators. Reprint of the materials is available only with the permission of the editorial staff.
We use cookies to improve your experience and to make your stay with us more comfortable. By using Forex-Ratings.com website you agree to the cookies policy.