Learning to Trade the Right Way

Thanks to the internet, playing the markets is no longer the preserve of those individuals who have been identified as falling into the bracket of the wealthy, cold-called by brokers to try and get them on board to further increase their wealth. Anybody with an internet connection can now trade, which basically means anybody at all, even if you connect with your Smartphone. However, if you are indeed looking to get into trading then there’s a right way of doing it and there’s a not-so-clever way. We’re going to discuss the right way, of course.

Avoid the gurus and their expensive training courses

It can be very tempting to want to learn from the supposed success of someone who has seemingly gone before you and has since turned teacher or coach, but it’s best to stay away from the gurus and their expensive trading training courses. The info they likely have for sale is freely available if you take the time to conduct some research on the different trading strategies that exist as well as the technical terms involved with trading.

Do some research and pick a strategy

Picking a strategy is a matter of doing some research about how each of them works and then picking one which you have a natural affinity with. It’ll very quickly become clear to you, not too long after you merely read about them, whether you’re a swing trader, a technical trader, you follow a certain basket of stocks, you scour the news circuits and wait for a specific event to trade, etc.

It’s all about picking a strategy and being consistent in its implementation, because that’s how patterns are detected – patterns which the most successful traders silently profit off of.

Set aside some “education money”

Now, having avoided the gurus and their expensive training courses, the money you would have perhaps spent on that training should rather be used in a real-world trading environment so that you can learn the ropes the right way. Trading CFDs with a live account and with real money is different to trading with a demo account, because even though you’re just one, tiny market-influencer, your live trade with real money actually contributes to the motion of the markets.

Think of this as your education money though, which means it’s money with which you’re learning some practical lessons in trading, so it must be money you’re not really expecting any returns from. Think of any gains as a bonus and then once you’re comfortable as a real-money trader, you can start trading “for keeps.”

A short intro to indexes

Certain financial publications track and discuss a selection of shares which they group together based on whatever common set of characteristics chosen and these are often referred to as indexes. One of the best ways of advancing your trading knowledge is via the tracking of such indexes, perhaps selecting trading positions based on them and paying attention to the various market signals that appear to be driving the value of the stocks forming part of that index.