A Simple Guide on How to Learn to Trade the Financial Markets: Introduction
The finance and investing field is one of the most interesting in the world. For example, it is possible to run a big trading operation within a small room. Unlike other businesses, you don’t need a lot of fixed assets to start with. Many traders I know started trading in their spare rooms.
Unfortunately, it is difficult to succeed as a trader. It takes a lot of time to learn and understand the dynamics of trading. It is also difficult to maintain balance when you lose money. As a result, most people who get into the trading industry end up failing.
To avoid all this, the best thing you can do is to learn. Going against this process will make you fail and potentially lose a lot of money. Fortunately, you don’t need to go to college to learn how to trade. It is a process you can start immediately without spending a penny.
First, you can use the websites that teach people to trade. There are many of these but the one I recommend is called Baby Pips. The website is modelled as a school, with levels starting at pre-school to postgraduate. In all the levels, you will learn something that will help you become a better trader. For example, in the pre-school, you will learn more about the fundamentals of forex and how you can make money. In the post-graduate level, you will learn concepts about risk management and currency correlations.
Second, you can use books to learn more about the markets. In the past, to find books, you needed to go to a local bookstore or a local library to find these books. Today, you don’t have to do all these. You can simply go to online and buy a book within minutes. If you are conservative, you can search for these books online and find out whether you can download them for free. In the past, I have found several high quality books for free. I recommend that you buy books like Millionaire Traders by Kathy Lien, and books by Alexander Elder.
Third, you can use YouTube videos to learn more about trading. Ideally, you should use these videos as a way of boosting the skills you learn from books. For example, if you read about a concept of moving averages, you can go to YouTube and find out how people use the strategy to trade. In YouTube, you will find thousands of videos about trading.
Fourth, you can find other online courses. There are many companies that offer these courses online either for free or for a slight fee. For example, in Khan Academy, you will find courses on trading that will help you become a better trader. Other websites you can try are Udacity and Coursera.
After all this, I recommend that you take time to learn more about the financial markets by reading financial news. Websites like Bloomberg, Financi