- The best way to learn how to trade stocks comes with educating yourself on reading the financial markets via price action and charts!
- Using technical & fundamental analysis to unscramble the price action.
Even though it seems like something you’d rather skip and go straight to trading, it’s really not the case. Don’t miss a single step before executing the trade, because even a single little thing you miss can be devastating for you and your trading strategy!
So, you first must educate yourself to trade stocks by actually reading the financial markets using nothing else but price action and charts. Once you master it you can then move forward to the next steps.
5 Steps to learn how to trade stocks
Step 1: Open Your Trading Account
Despite the fact we’re starting with the obvious one, you must first open your trading account and get to know it before you can start trading!
You want to learn your trading account and how it all works to its fullest. You don’t want to start wandering around once you get the great opportunity!
You must act fast once you’ve seen an amazing move about to happen so you can execute your trades and get out when it gets heated. Because you’re here to learn how to trade stocks and actually make some money!
Some of the best platforms we would recommend to open a trading account for yourself are as follows: RobinHood, Fidelity Investments, E-Trade
Step 2: Learn How To Read The Market
It is very important to crack the code when it comes to reading the market. You mustn’t focus on a single aspect like simply using indicators and nothing else when it comes to trading. You must be well prepared and read the market the way it stands currently!
You must be able to see where the market is currently and where it’s headed! It’s a simple cycle game!
There is a plethora of financial articles, stock market books, tutorials, and even webinars that can help you out immensely when it comes to trading stocks.
It is very important to educate yourself as much as it’s possible! This is a journey you’re about to take and you must be well prepared for any encounters you will find along.
Therefore, here are some of the books on stock trading that can get you off the track:
Try and read all of the books above and you will have a great start already. It is not as hard if you follow all of the instructions! Do it in your spare time when you’ve got nothing else to do. Follow the behaviour of the market every day. Read the books and financial articles. This helps you immensely when it comes to trading stocks.
Step 3: Learn Technical Analysis
Before you can start executing almost perfect trades in your trading life you first must get to know all of the technical analysis. Everything falls down to your experience with Charts and technical analysis since this will show how good you are at price predictions.
You must get to know when the up-trend or the down-trend is about to happen and get in early. This is crucial because you immediately decipher whether you’re going in short-term or a mid-term or even a long-term position holding.
Once you get all the pieces together the very same trading becomes so much more fun and exciting. Because as soon as you master some of the basics of trading and get to know the rules you will already enter that realm of mystery and find it out that it’s not as hard as it seemed at first!
Try and take a look at three different time-frames when it comes to searching a stock to trade and actually entering a position. First, you take a look at the one-hour chart, then a daily chart, and finally the weekly chart. This way you will have much more intel and it will be way easier for you to execute the trade correctly!
Here is a course you NEED to take in order to get great at Technical Analysis and Master the basics of Trading Stocks: Advance Trading Strategies
Step 4: Practice Trading Daily
The best way to start off with the trading, get your feet wet without actually losing any of your precious capital is to try out one of the many simulators you can use to test out your strategies and tactics without losing your REAL capital! Trading virtually is a perfect start to learn how to trade stocks.
These simulators offer a free amount of money to trade with. Like 100k for starters. This is called virtual money and you only use it to TEST out your strategies and tactics, to get better at trading day by day!
It is very important to stay persistent at trading because oftentimes it will take you a lot before you master all of the necessary tasks you must do to start executing perfect, profitable trades!
Here is the one free stock market simulator.
Get on it and try to trade every day, learn new things and master the technical analysis!
Step 5: Other ways to Learn how To Trade stocks
While you can find pretty much everything online nowadays, still some of the classes are also a very good way to find out more about Technical Analysis, Trading Strategies, Mitigating Risks, and chart patterns! These are great steps to learn how to trade stocks and improve your progress.
Whether you’re a novice or a pro these classes are often jam-packed with serious material you can use while trading on your personal trading account!
Paying for your education on stock market trading, in general, can be very useful for your future financial decision-making. And also, it can easily become your primary source of income just like Warren Buffet did.
Also, you might go and look around for a mentor that can easily guide you through all of the bad things you should avoid while trading the stock market. And actually, walk you through the crucial steps of becoming a professional stock trader.
Never look upon the cost of education on the stock market as a liability, but as an asset! Because once you do get to know the actual behavior of the stock market, and once you really get good at it, all of the investment you’ve made along the way will be paid off!
And depends on how hard you’d be willing to work and improve yourself you can even retire at a much younger age than you’re supposed to!
Final Words when you learn How To Trade Stocks
Start your trading venture with a deep education on the monetary business sectors, and afterward read outlines and watch value activities, building systems dependent on your perceptions. Test these methodologies (strategies) with paper exchange, while at the same time dissecting results and making nonstop changes.
Then, at that point total the main leg of your excursion with the financial danger that constrains you to address exchange the executives and market brain science issues.
Document your trades and try and find all the bad things that are going on while you’re using technical analysis and chart patterns. This way you will set yourself for a successful journey. The more wrong things you find and the faster you’re able to find them, the less and less time it would take for you to actually find a strategy that works great for you!
There are literally millions of trading strategies and patterns you can use, but nothing will work as well as your education can. Because if you are well educated with every aspect of the trading you will know exactly when to enter and exit trades, you will see an opportunity a mile away and on top of that, you will be able to mitigate your risks!
The first step is reading this article and checking the courses to learn how to trade stocks.
Photo by Austin Distel on Unsplash