Sunday, January 24, 2016

Learn How To Trade

A long time ago, the beginning of commerce brought us a way of dealing with merchandise, the trade. Trading started with people looking for getting something the others had with something we did for mutual benefit. Since then, it has evolved to more sophisticated ways, like active trading, leading to today’s different types of tradings and markets.

If you are looking to trade on financial markets, you may not even know where to start, not even which Forex trading platform to choose. For that reason, We will now show you now some ways you can get knowledge on trading Forex and different markets. Undoubtedly, the best knowledge comes from two main sources: Traders with experience and books or publications that you can find online. Everything else just won't be as good.

Ask for experienced traders advice

One of the best ways of learning how to trade is approaching experts in the area and asking intelligent questions. Successful traders may be reserved about the methods they use to trade, of course. However, if you ask them what they think and how they feel in particular situations; and how they deal with their emotions when trading, you may receive many life-changing tips. The same will happen if you ask them which Forex trading platform do they think is the best. In fact, we can almost assure you they’d love to do it. Everyone likes to be a mentor if the mentored person is truly interested, after all if he is a trader, he is most likely passionate about it.

Learn by reading and researching

If you don’t have the opportunity to learn directly from an expert trader, probably because you don't know any, there are other ways you can acquire knowledge on trading: reading and researching. In the forex market, there is an incredible variety of books written on the subject. However, for beginners, it is vital to know about the specific strategies and methods of analysis traders use, as well as the way they think. Internet is crowded with information, finding some for ourselves in order to learn is as simple as googling what we want to know and identifying reliable sources. Then read 10 articles about it and draw your own conclusions.

Useful publications

Let’s recommend you a quick book trading checklist that I’m sure will help you in the process of becoming a successful trader. Here is a handful of useful and valuable books:
  • Henri Lefevre’s book Reminiscences of a Stock Operator (1923), written in honour of Jesse Lauriston Livermore, well-known as the Wall Street’s "Great Bear" and "Boy Plunger", is a really practical book. At the beginning of the 19th century, Livermore was one of the main traders in the Wall Street stock market. Through the book, Lefevre illustrates very neatly Livermore’s way of thinking, strategies and concepts regarding trading. 
  • Jack Schwager’s The Market Wizards and The New Market Wizards are really useful and enlightening pair of books created from the basis of conversations with the best traders coming from markets of diverse nature. Reading these books, you will have the golden opportunity of getting familiar with the habits that top traders have to be successful. 
  • Michael Covel’s The Complete Turtle Trader portraits a trial whose origin was a discussion between a pair of traders. Led by a trading expert, the training process of some specifically chosen people, as well as what comes out of it, are shown in the book. 
Internet, research and trade

There are countless online resources to learn how to trade. You can research on specific topics related to trade in specialised websites. Additionally, you can try different Forex trading platforms using demo accounts and see which one fits you most. In these, you will quickly see how possible and even easy it is to find a great deal of valid, useful information.

What you can do to learn:
  • Learn from other traders through the interaction between them in discussion forums. 
  • Use your Forex trading platform information. 
  • Use the technical indicators provided by your Forex platform or broker. These will lead you to acquire experience and knowledge on analysis and technical indicators.
Other Internet advantages:
  • Another plus is that Internet and electronic trading allows any person to be successful in learning by himself about the Forex market without needing to belong to a financial company. 
  • Internet and online trading also allows more accessibility to trading, you can open a Forex account with a very little amount of money and test yourself on the business. 
So, summing up, being a great trader requires stepping up your game as many times and as high as possible. To do so, a mentor who could guide you or yourself passionately looking for the information you know you need on your computer are your biggest allies, use them properly and results will come along.

The article is written by Nick James, a Forex trading enthusiast. Ask him a question on Quora or stalk him on twitter.