If you’re planning on opening up a trading account and becoming an overnight billionaire, think again. Trading requires discipline and hard work and typically only suits individuals with a genuine tolerance for risk. But the rewards can be well worth it!

Here are a few trading tips (for new and experienced traders alike) from Nilan Morar and Bradley Leather, who head up the trading desk at stockbroking company GT Private Broking, a division of Purple Group Limited.

1. Do your research

Don’t even consider trading until you have done your own research and educated yourself on the markets, the products you are trading and what makes these products tick.  Track the instruments you’re interested in, read the research of reputable market commentators (even if you have to buy the research, it can be a very worthwhile investment), and understand the risks associated with each strategy you employ.

2. DIY or partner with a stockbroker

There are several online platforms that give DIY traders the ability to execute their own deals. If you prefer a bit of hand-holding, guidance and advice, use a reputable stockbroker – who comes with ready-made research and provide an additional eye on both local and global markets!

3. If it sounds too good to be true, it probably is

If anyone offers you guaranteed returns that seem unrealistic with little or no risk, step away. If it were that easy and they were that good, they would have retired long ago!

4. Plan your trade; trade your plan

If you have a successful strategy keep to it, and do not deviate from it. But if you’re uncomfortable about your position, get out immediately!

5. Be patient

There are a lot of people who have profited, and continue to profit from trading… but it doesn’t come easy! Successful traders have all learnt their lessons the hard way and have taken losses along the way. However, through hard work, time, dedication and keeping to your trading disciplines (i.e. knowing when to take profit or losses, and when to get out of your trade) you can make a success of trading.

6. Understand trading versus investing

Trading is not for everyone and must not be confused with investing. Investing is a long-term activity that involves putting money away on a regular basis for a number of years. Trading involves looking for under or overvalued assets and offers you the opportunity to profit from making the right decisions at the right time.

Trading takes a special mindset and it’s vital that you understand the risks involved before you start.

7. Never trade with money that you can’t afford to lose

If you are trading to pay your bills, stop immediately and contact a reputable financial adviser. At this stage of the game, the help you need isn’t going to come from your trading account.