It is great to have a mentor, so if you know any trading expert personally, ask them for insights. This is not a prerequisite to success – you can still master trading on your own, using self-education resources. The Internet is your infinite source of learning content.
Learn From the Best
Read e-books from experts with proven experience in the field. Today, anyone can pose as a trading guru on Instagram. Be wary of impostors. Some of the recommended choices include “Trading for a Living” by Dr. A. Elder, “Technical Analysis of the Financial Markets” by J Murphy, and “The Nature of Risk” by J. Mamus. Your broker should also provide ample learning opportunities. Study overviews of strategies, articles on Forex for beginners, and other resources.
Finally, develop a habit of checking relevant financial news. The markets react to economic and political events, so it is vital to know what is happening. Trading platforms are equipped with news features, but looking through news sites is just as important.
Explore Your Platform
Today, there are a lot of popular trading terminals. These are free for download, and they have sleek mobile versions for both Android and iOS. An important advantage beneficial to rookies is the demo mode.
With login details from your broker, you will unlock all features for training purposes. Neither profit nor loss will be made: this is a simulation environment. Take time testing the features: the longer you spend on practical learning, the better.
Learn About Risk Management
Any form of investment is inherently risky. Traders have a number of ways to limit potential losses. Practice setting Stop Loss and Take profit values for every trade. Learn about trailing stops. And think of your opportunities to diversify later on. Once clients master currency trades, they add more instruments to their portfolios, thereby reducing the overall risk.
It is important to be familiar with risk management rules and opportunities from the start. Remember that mistakes will happen. In live trading, they may cause substantial losses unless you learn to hedge risks.
Grasp Basics of Analysis
There are two ways to approach decision-making: through fundamental or technical analysis. There is no reason not to use both, so learn about these methodologies. This means you will consider economic and political factors, as well as patterns in price movement.
Adherents of the fundamental view rely on the constant flow of media information relevant to their instruments. For instance, a currency trader will look for news about interest rates, GDP, employment, trade balance, and other aspects of national economic health.
The values of currencies in any pair depend on the state of their respective economies. Even political speeches can propel currencies in a certain direction. Luckily, trading platforms have in-built features and alerts tailored to the needs of fundamental analysts.
The second approach is based on price data, and it rejects the very concept of randomness. Traders aim to predict future changes by analyzing patterns and trends from the past. The premise is the belief that regularities repeat themselves. Here, patterns related to price are referred to as ‘signals.’ Charts that depict prices and volumes help traders spot favorable entry and exit points.
With modern technical tools and educational resources, anyone can master trading online. Follow our recommendations and start wisely. Develop a consistent strategy and gradually hone your skills.