A Beginner's Guide On Learning 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 trading and markets.

If you are looking to trade in financial markets, you may not even know where to start. For that reason, We will now show you now some ways you can get knowledge on trading Stocks 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 Experienced Traders For Advice

One of the best ways of learning how to trade is by 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. 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 stock 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. The 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.

 A good starting point is reading all the articles on this site under "Market Education". For those who don't have the time to read all the articles here, a few great starting points from this website would be learning about Japanese candlesticks, as well as a breakdown of technical indicators and how useful they really are.

Great Trading Books

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 honor of Jesse Lauriston Livermore, is well-known as 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. By 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 portrays 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, is shown in the book. 
You can also head over to my list of the Top 4 Must-Read Stock Trading Books to help you become a winner.

Internet, Research, and Trade

There are countless online resources to learn how to trade. You can research specific topics related to trade on specialized websites. Additionally, you can try different stock 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 the technical indicators provided by your stock trading platform or broker. These will lead you to acquire experience and knowledge on analysis and technical indicators. I personally recommend TrendSpider charting software. They have the latest in cutting-edge indicators, as well as a great price (use code CL25 to sign up for 25% off). Additionally, they have one of the most extensive YouTube libraries explaining how to use all these indicators and features on their site. It comes with a 7-day free trial so you have nothing to lose.
Other Internet advantages:
  • Another plus is that the Internet and electronic trading allow any person to be successful in learning by himself about the Stock market without needing to belong to a financial company. 
  • Internet and online trading also allow more accessibility to trade, you can open a Stock account with a very little amount of money and test yourself on the business, especially with the RobinHood era as now the cost to trade is essentially free. Although, I recommend one of the bigger brokers like E*Trade or Ameritrade, as RobinHood is not reliable when the market becomes very volatile.
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 ally, use them properly and results will come along. But always constantly learn, and work on improving from your mistakes. Trading is never meant to be easy and requires respect and a large amount of attention.


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