Stock Market Training
Stock market is one of the growing markets, which is popular both in the West and in our country. This market implies ownership and speculation (trading) in shares of various companies.
- 1. Right choice of stockbroker
- 2. Stock market trading training from the scratch
- 3. Stock market principles
- 4. Trading principles
- 5. Stock trading preparation
- 6. Trading strategies: what they are and what they are like
- 7. Popular strategies of stock market trading
- 8. Technical and fundamental analysis
- 9. What the trading courses are like and if a newcoming needs them?
- 10. How to avoid losing money trading in the stock market?
- 11. Trading psychology in stock market
- 12. Training materials
- 13. Risk management
- 14. Reviews
Due to the rapid development of Internet, you can sit home and literally «in a couple of clicks» become an owner of shares of such world famous brands like Google, McDonald’s, Starbucks, Apple, Facebook etc. The assets of companies from all over the world are available here. It is worth noting that the stock market is also the oldest financial market that has existed for a long time, has its own rules, an extensive structure of participants around the world (investors, traders, exchanges, brokers, etc.) and every resident, regardless of involvement in this world, often becomes a witness to its news, trends. Certainly, the largest media cover the events in the world of securities investments, separate financial TV channels were founded; there are a large number of analysts, market professionals, who address their advice to investors for profitable investments in the assets of companies. Therefore, it is difficult to call the stock market a scam, because it attracts attention of international prestigious organizations. However, do not be afraid that everything is so serious, incomprehensible and inaccessible for a newcomer – work process, on the contrary, is so simple that a trader with any experience will easy cope with it.
Trading on the stock market is an income from investments in the shares of companies. If an investor forms his investment portfolio competently, he will be able to earn there, where other participants have only the losses. In addition to the shares are available bonds, futures, invoices and other securities – documents that can bring a lot of income to the investor with a smart investment strategy.
Such work certainly requires from the trader a complete immersion into the market; moreover, you can get an assistance of a trusted investment fund, a personal manager who, having received your money in management, will form an investment portfolio, will trade shares and generate income. Trading in the stock market is profitable and convenient. It is enough to have a stable Internet connection, a great desire to try your hand at a promising trading industry to do this. You can build your own schedule for working with shares, trading intensity and the level of earnings. Increasing the level of knowledge of the stock market, the trader several-fold increases the opportunities for profitable investment of money. When trading on the stock market, you can choose a strategy for working here: to be an investor or a speculator in shares, to get your money from what is closer and more profitable for a trader.
Certainly, as in other markets, it is important to know the market characteristics, understand its operating principles, monitor trends, test functionality, search for a reliable stock broker, etc. Trading shares on the stock exchange is an activity for those persons who would like to try something new, who want to change their lives for the better. Work here is performed according to the rules established by the regulator and law. In a trading terminal, accessible from the user’s computer, deals take place in seconds: the application is opened, the system selects counter requests, the deal is concluded, the asset becomes the buyer’s property.
Right choice of stockbroker
One of the important «elements» of trader’s successes in the stock market is a right choice of a stockbroker. The broker provides its client with mediation services, allows him to trade comfortably on the market through the trading terminal at any time convenient for him. The broker helps to conclude a purchase/sale of assets and receives a fee for its service.
Top 3 best stockbroker in our opinion
|Broker||Min 1st Deposit||Leverage||Spread||Founded||Review||Open Account|
|Floating, from 0.3 points||1994||Review||Visit Broker Demo|
|from 1:20||floating, from 0.2 points||1971||Review||Visit Broker Demo|
|300 USD||2009||Review||Visit Broker Demo|
There are so many companies providing access to stock market opportunities, and sometimes it is difficult to choose the one that will be honest and not deceive a client. So how to choose a right stock broker? We will find out in this part of our article.
Studying the stock market newcomers mostly leave unaddressed the choice of a proven broker. They quickly stop at the option that guarantees them a fabulous profit in the near future and profitable bonuses from registration in the platform. At the same time, newcomers do not think that it can be a scam artist who was founded to deceive naive market players. If professional traders choose a particular broker, they carefully study its activities; opportunities offered to them and make their decision on cooperation with the company according to the following information:
Availability of a license to carry out brokerage activities. The license allows a trader to feel safe and secure when working in the company’s terminal. Since the license is easy to be lost, brokers carefully follow the legislation of the country of their registration. In every country, federal agencies for financial markets regulate the activity of brokers.
If the broker has licenses of such regulators, it proves that trader’s money is in safe hands, ensures that he will not lose them even if the company loses the license. Some brokers publish information that their activity is licensed and regulated by private commissions, but they are registered offshore: Cayman Islands, etc. A trader should not trust his money to such companies:
- The trader should not neglect the information about the brokers licences, because he transfers his money to the broker’s platform, plans to withdraw earnings – he should work with a strong company to do it.
- Positive customer feedback about the company. Certainly, the fact that the broker has only positive reviews, should alerted, however, it should not be only negative reviews, otherwise it would serve as confirmation that before us a scam artist.
- Favorable tariffs: it is worth studying the cost of the company’s services, what kind of services it provides to its customers.
- Company office. If a broker has a representative office in the region of trader`s residence, he can come there for registration, training, etc.
- Quick and high-quality support service. You only need to write a question to the support team in order to understand managers` qualification that a trader offers, while working on the platform, etc. So, if a manager’s response is correct and fast, it will show broker`s efficiency.
- Variety of assets for investment and speculation. Each stock broker has a different set of assets: shares, futures, bonds, other securities, etc. – the wider range of choice is, the more profitable is to work. Some traders form an investment portfolio of assets and, if there are enough of them on the platform, it can be an additional advantage of the company.
- Functional platform. Terminal is a solution, which enables a trader to sell assets fully, place trades, track their performance, etc. Often the leaders in the market have more affordable terminals with advanced functionality, which proves their seriousness, authority, shows that the company has a staff that can create innovative, unique solutions to their customers.
- An indicator of money turnover of the platform, which helps you to understand that the company is interesting to traders, that they work actively here and trust the broker with their money.
- Ease of deposit and withdrawal of capital. A trader comes to the market to earn money here, so it is important to understand, whether the broker will allow you to withdraw money from the platform without problems, to know the conditions and features of capital deposit and withdrawal.
It should be understood, that the choice of a brokerage company that provides trading services in the stock market is an important part of the trader’s work, which directly affects his success, so he needs to take it seriously, a lot depends on it.
The experienced traders keep track of the current rating of stock brokers which is on our website. Its peculiarity is that we publish detailed reviews of brokers, pay great attention to the license of the company, study the provisions of its «User agreement», etc. In our reviews you can also read the real references of traders who trade with the company.
Which factors complicate dealing with a broker?
When a trader has chosen a reliable and honest broker, started to work on his demo account, chose assets for investment, he may have a fair question: are there any other factors that can complicate his cooperation with the company? Yes, there are such factors and they should be taken into account, because their ignorance can complicate the work:
- Signing of transactions reports required
Some brokers set as an obligatory operation condition for a trader is to sign monthly/quarterly reports on all transactions. Choosing a broker to invest in securities, it is necessary to clarify the availability of such reporting form, because in some companies a customer should provide it to the office and it can be inconvenient to the trader.
- A withdrawal application required
When a trader works with a stock broker, often there is a need to apply for a withdrawal of earnings in different ways: by phone, on the platform, in the office of the company. Certainly, it will be more convenient to make such an announcement in a personal account.
- The transfer between different sections of exchanges required
If the trader intends to work in different sections of the exchanges, he should have a single brokerage account for convenience, which will allow him quickly and easily to transfer money to the exchanges.
- Mobile trading by broker required
Trading shares in a mobile application is convenient and some traders know it and work with the brokers that provide them with a quickly access to the platform at any time through a smartphone. When a trader travels, he will always be able to enter his personal account, work with the investment portfolio, make transactions, etc.
Stock market trading training from the scratch
On Internet there are more and more traders that are interested in possibilities to earn in the securities market. Some of them have already faced with trading, someone, on the contrary, just decided to try their hand at this type of remote work. All these users begin to think sooner or later about how to get a stable profit from investments in securities. At the same time, a lot of materials about the market, strategy, methods of work are available on Internet. An inexperienced trader can get lost easy in it, especially if he does not understand that not all information is trustful. What should a trader do in this case? In this part of the article we will tell the readers about what a trader should know who just starts working in the stock market.
Stock market theory
Getting familiar with this financial market one is supposed to know the basic definitions appearing in articles, training courses, on forums etc. these are for example such words like «assets», «dealer», «barrel», «volatility», «share», «stock exchange transaction», «securities», «exchange», «dividends» etc. Worth separate studying is the topic of today’s organized exchanges operation principles, for instance LSE, NYSE etc. If a trader is confused with the market terms, he will not come to profitable trading and will not achieve success here.
Trading on a stock broker’s demo account
All major brokers of financial markets have an option of trading on a demo account, which is provided to anyone absolutely free. Why does a trader need this account before registering with a broker? This is a fair question that arises more often among market newcomers who do not yet understand the possibilities of trading. A potential client of the company does not get a training account just so: it will allow him to study functionality of the trading platform, try to conduct the first transactions, make a full analysis of the market, work with assets, expirations, various strategies, etc.
Here you can also ask questions to the support manager and his answer determines an efficiency of this service, etc. On the demo account the same opportunities are available as on the real one, but it is only a simulator of trading on the market with virtual capital. Most brokers also provide a demo account for the permanent use of the trader; it means that by changing to a real account, he will always be able to use the training for testing strategies, etc.
Study of insightful materials about the stock market
It is impossible to be a professional in securities market without knowledge of its basics, without improving skills, without constant study of useful material about it. Thanks to the availability of Internet, you can find a lot of useful and relevant material on the network: news, analytics, market reviews of profitable enterprises and assets, forecasts, as well as rules of money management, risk management, strategies, methods of analysis, webinars, courses, etc. If a trader fully immerses himself in the securities market and improves his knowledge, he can be sure that he understands this market and its capabilities.
Study of indicators signals
Indicators are technical means of market analysis that generate signals for entering the market. Certainly, speculators use their opportunities when working in the stock market. To reach earnings from investments in the stock market, one doesn’t have to know all the indicators, especially, since there are a lot of them: popular, rare and author’s indicators. As basic indicators shall be considered the ones used in basic strategies MA, Awesome Oscillator, Parabolic SAR, MACD, Stochastic, RSI, CCI etc. The complex ones are to be considered for instance DPO, ROC, Ultimate Oscillator, Gator, OBV, McClellan oscillator, Elder’s Force Index etc. Properly working with such tools, you can achieve the maximum from trading in the market.
Study of trading strategies
The stock market, like other financial markets, is completely unthinkable without strategies that are made to help a trader to find signals, determine trends accurately and find opportunities for earning money. A professional trader has several strategies for different situations that will not let him down and allow him to work with profit. There are a lot of strategies in the network, and they all focus on different audiences: for newcomers, experienced traders, for those who trade high-speed transactions or, on the contrary, plans to earn on the long-term transactions. Popular strategies for the newcomers have a simple principle of operation, they do not have complex settings and a complex principle of operation, on the contrary, they allow you to get the desired signal quickly and enter the transaction. Some of the complexes strategies based on signals of rare indicators have a complex principle of operation and, before you start trading, you should test them on a demo account of the broker.
Trading with a reliable stock broker
An important component of successful trading in the market is a choice of a reliable broker who will not deceive a trader and will not disappear with his money. There are a lot of opportunities for trading in the broker’s terminal: it is a system of placing transactions, convenient charts with instruments (indicators, graphical elements, etc.), a personal account, a free demo account, trading history, etc. Using these tools, you can get high results from the market. All decent brokers will offer traders a high quality service that works without failures. In addition, they have a license, are open to communication, improve their service, on their website you can study information about the company, its analytics, news, forecasts, strategies, etc. The market leaders among the brokers have a lot of feedback on Internet, and most of them are positive, they also allow you to make sure that the company works transparently and honestly.
Stock market principles
If a trader wishes to make money with the stock market consistently, it is necessary to know the structure of trading here. We will discuss it in our article. The stock market is an international financial market, where its participants earn money using various securities: shares, bonds, bills, checks, etc., in which you can invest or become their owner. This market has its own operation rules; around it was created a separate branched infrastructure that serves trading participants, so that investors can instantly carry out transactions, and in few seconds after completing of the transaction become the owners of the security, etc. Like other financial markets, this market is interesting to the user, attracts the attention of those traders who do not have special education, but are ready to learn it and increase their profitability.
We can say that the stock market is a set of rules that allow trading securities. This market supports the turnover of securities, so it is often called the market of securities. Unlike the over-the-counter market, it has strict regulation, clear rules and regulations, here all transactions are carried out officially, and their results are recorded in the system. Today, if we talk about the stock market, we mean a brokerage platform where a trader carries out the transaction and makes a profit. Thanks to the rapid development of Internet trading, anyone can be involved in this market, and if you immerse yourself into this market fully, you can become a professional investor.
The stock market attracts a different audience of investors to the platform: traders who have money and would like to increase it; companies that need investments and staff expansion of the investors; brokers who offer services for trading in this market. Today, the stock exchange does not need offices; all work is done in a convenient electronic form. It attracts Internet users and investors. Despite the fact that the stock markets of some countries have a number of problems, and the participants often have a lack of competence, but they are attractive to foreign investors and continue their development, are in line with current trends in online trading.
It should be understood that a regulation issue is very important in the stock market, it means, those activities that are aimed at regulation of different participants (speculators, investors, issuers, etc.) and operations by companies and regulations. This ensures the clarity and safety of the market, affects its liquidity, which depends on the uninterrupted operation of the system. Stock exchange is an important element of the stock market, which ensures its stable operation. It functions on a regular basis and provides a user with quotes data, secure platform and convenient trading process. To make it work efficiency, there are necessary: a system for collecting of the orders that are recorded in the accounting registers; clearing agency that monitors the capital turnover of trading participants, transfers money, etc. and depository center that tracks the turnover of securities. Such system is invisible to the eye of an ordinary person and works without interruption, providing a constant turnover of assets.
The exchange is a functional platform which is convenient for stock trading and researching of trading history, registration of the orders, entry of capital, market analysis, etc. There are totally three possible ways to trade on the stock market: by phone, with trust management and the most common and convenient method is Internet trading, when you trade through the terminal (quik, mt4, etc.), which is provided to the trader when registering with a broker. Here you can trade at any time of the day and monitor the status of the account, etc.
The stock market is a type of financial markets that is popular among online traders. But a trader can earn money in Forex market, working with binary options, cryptocurrencies, etc., These markets have their differences and peculiarities, possible trading styles and available tools. However, all of them have a number of factors that make it easy to combine them into one common concept of «trading». We will talk about it further.
Trading is one of the ways to earn money, which is based on trading various assets in the financial markets. It is more correct to talk about online trading, because all activities take place on Internet: investment, trading, search and testing strategies, tracking performance. The Internet offers an individual a lot of opportunities, and remote earnings is one of them. If a user is interested in trading, he chooses a broker to trade with, tests its platform on a demo account, studies the theory of the market, strategies.
It is important to study the basic trading tools: terminal, indicators, list of assets. Then you can transfer funds to the broker’s account and start real trading on the market, earn money and withdraw them. Certainly, a trader should continue his education: to look for new strategies, methods of market analysis, to determine a comfortable style of trading, to study useful materials: articles, books, to participate in webinars, master classes. A free demo account is available to test various methods of trading; some brokers are also allowed to use robots and advisors. Market leaders offer their clients a lot of useful material: analytics, forecasts, reviews, news, free signals, training programs, etc.
Stock trading preparation
The stock market is not a simple source of earning. If a trader does not know the operation rules, is unable to assess the situation and does not use the trends, he will have only losses. A successful start in the market depends on the readiness to work and on the trading experience. You need to use a demo account and terminal options, get acquainted with the market consistently, study theory, strategies, and analytics, implement the rules of money management, etc. It is important to trade correctly on the broker’s training account, which in practice will make it possible to verify the efficiency of the system, test strategies and analysis tools. This market is different from the other set of assets; here you earn money investing in securities of companies. At the same time, you can be not only a trader who receives his profit from the dynamics of asset prices, but an investor who earns money from owning a package of securities of any company.
Today, all trading on the stock market takes place in the online terminal which is provided to a trader by a broker. If a trader enters a terminal, he gets an opportunity to be involved in the largest international market, earn on investments in shares, etc. The client of the company can trade here when it is convenient for him. At the same time, if you download a free mobile application of the terminal, you can visit your personal account via Internet at any time and in any convenient place, work with applications, trade and analyze the dynamics of asset prices. When choosing a reliable broker, it is important to study the real traders` feedback on the thematic forums, to be aware of the current rating of the stock brokers.
When newcomers steep themselves in the stock market world, they usually face an unfamiliar system, but often they do not want to puzzle it out and take time to learn the basics of the market, so they make a number of mistakes that lead only to losses. In this case, on Internet immediately appear reviews of such traders that a stock broker is a scam artist. In this part of the article we will tell you about the mistakes that a newcomer should avoid.
- Try to get instant money
Having entered the broker’s platform for the first time, the newcomers usually immediately make transactions to earn money. They do not understand the features of the market, capabilities of the platform and do not analyze dynamics of the assets, but they immediately make a transaction, if it’s a gamble where you only need to guess the price movement. But it’s not so simple: in fact, the stock market is not a place, where you can make easy money. To trade here successfully, you need to know theory of the market, characteristics of the asset for investment, be able to use strategies in trading, analyze the potential of companies, etc.
- Consider the stock market a gamble
Newcomers often consider trading and financial markets to be the gambling options, when you do not need to think about anything and make money by guessing which way the quote will go. However, this position will not work on any of the financial markets, because everywhere you will still need to analyze the situation, use the strategies, indicators, different types of analysis. The stock market is no exception, especially, if the user intends to be an investor who buys the company’s assets to own them and get income.
- Invest their last money in trading
One of the serious mistakes of market newcomers is to transfer all their money to the broker’s account in the hope of increasing their amount. At the same time, unconscious trade on the market without using a strategy, without relying, for example, on news, leads to a rapid drain of the deposit. After losing all the money in just a few trades a trader concludes that the stock market is a scam. A trader should not transfer his last money to trade, especially, if he has no trading experience. It is hard to lose money, so it is important to remember that you cannot escape losses and you should save money, using the rules of money and risk management.
- Use the demo account in a wrong way
Newcomers do not realize all possibilities of the educational trade. A broker provides such account for free, and you will not earn money here. Therefore, traders immediately change to a real account in the hope to increase their income. Due to the fact that they did not pay attention to the study of the terminal, its capabilities, do not know how to use a chart, there are losses of money. It is not enough just to make a transaction, you need to add indicators to the chart, try the strategy to get confirmation of a particular market trend. The demo account will allow you to study the options of the platform, conduct the first transactions, and check the effectiveness of the strategy free of charge and without risks for your capital. Such experience will be especially valuable when working in the real market, when a newcomer usually feels insecure, has fears of losing money, etc.
- Choose a wrong stock broker
This should also be considered a popular mistake of market newcomers, which can lead to large losses of funds. Getting acquainted with the market, newcomers do not know yet that there are not only honest companies, that are easy to get «into the clutches» of a scam artist and give him all your money. Like other financial markets, the stock market has a lot of competition for the client, so brokers, in order to attract new users, come up with promotions. Here, next to the honest companies work the scam artists who offer a naive trader even more advantages and defraud him. Of course, making a choice in favor of such a broker, a trader is guilty of the consequences of his decision: he will not be able to withdraw profits, will not contact the manager, etc. In fact, the choice of a broker for trading is a very complex process: it is necessary to study his experience, check the availability of a license, positive reputation, study the reviews on Internet and trade on his demo account. Most often, the professional traders will follow these rules, because they are interested in finding a broker with whom they will cooperate on a long-term basis and will be able to trust him with their money.
- Trade without seeing into the market
Often, market newcomers begin immediately to trade real money after they have registered with a broker and expect an increase in income. At the same time, they make bets at random, just try to guess the dynamics of quotations, and, obviously, they lose money with this approach. Professionals work differently: they study the performance of tools that generate entry market signals, analytics, news background, history of the assets, etc. It is a serious work that allows them to predict the future price movements based on a number of factors. Experienced players know that any market operates under its own laws and the stock market is not an exception.
Trading strategies: what they are and what they are like
Trading strategies are a method of working in the market, taking into account its features, using certain tools that generate accurate signals. Experienced traders always trade according to the strategy, use reliable tools that help to improve the trading result, etc.
The stock market is popular among traders, with the spread of Internet it is rapidly gaining momentum, because, sitting at home, you can profitably invest money in securities, to be involved in one of the promising areas of trading. At the same time, all users can choose a convenient option of earning on the exchange:
- As a speculator who focuses on earning money in a few minutes. In this case, it is important for the trader that an asset is volatile, because earnings depend on price fluctuations. At the same time, he can use the data of technical, fundamental analysis and indicator signals.
- As an investor, who is interested in getting a long-term gain (approximately in 2-3 years). The traders buy securities not to resale at a bargain price, but to get a share of the business and income from assets, etc. The investor carefully examines the company, its prospects, financial reporting, business success, etc.
Most of the traders, who came to the stock market, are more interested in getting a quick profit from speculations on the value of various securities. In this case, a trader also needs a strategy that will allow him to achieve maximum income on the exchange. Traders use a variety of strategies to work in the market, but they can all fit into the framework of styles:
These short-term strategies work on short intervals (timeframes). As you know, a price of the exchange assets changes constantly during the day. If you make one or two trades per session, the price fluctuation chart will be calm. The risk of loss in this case will be lower, but there will be less profit. Working on scalping, for example, you can open the trades every 2 minutes. In this case, the chart of quotations will sharply twitch up and down. It is difficult to predict its dynamics with the help of technical analysis, so traders use indicators. A large number of players, who focus on generating income in the near future, are engaged in scalping.
This strategy is a less stressful than scalping, because it involves trading on longer periods within one day. Here you can use the technical analysis of the market. The number of transactions per trading session will be less than when scalping. On the exchange, a day trading is ideal for newcomers, because it will allow them to gain experience quietly and not to risk large sums.
The traders practice long-term holding of securities quite often. Such strategies can be divided into short-term (up to a year), medium-term and long-term (more than 3 years). In the trading, are used fundamental analysis, technical analysis, and other methods of work, so this strategy is interesting for experienced investors who look for opportunities to get a stable income.
Popular strategies of stock market trading
The stock market is a popular option to earn money in the format of remote work. Especially with the development of Internet technologies, it is easier to get access to the opportunities of the stock market and other securities. It is important to know that the exchange does not receive direct earnings from the transactions of players, but it gets fees from them as a good profit. There are 2 options for making money on the stock market:
As a speculator who focuses on short-term income in two minutes or more. Such a player does not care about the type of trading instrument; the main thing is its volatility, because speculators make a profit on price changes. At the same time, you can use technical, fundamental analysis, indicator signals, etc.
As an investor who focuses on long-term income for about 2-3 years. Unlike a speculator, he buys shares not to resale, but to obtain a share of business, sells them after a long time, when their prices will increase significantly, etc. With this approach, you do not need to monitor trends, it is important to study carefully the prospects of a particular organization, analyze its statements, news, etc. Here, an income will depend on the success of the company.
Who to be: an investor or a stock-jobber?
Trading on the stock market as a speculator is more difficult, not only large income but also large losses are possible. For successful trade is important to study carefully the market, trends, choose the right assets, develop attention and stress resistance. Trading on the stock market as an investor is easier, an income is predictable and stable, but it will be lower than by a speculator. It is more profitable to be an investor for those market participants who have the main income, who try trading opportunities as an additional income. This strategy is characterized by calmer trading, less risk, predictability of trading.
The role of the strategy is difficult to overestimate: in trading, it affects the effectiveness of trading, helps to save and increase money. To choose the right strategy to work, it is important to take into account several factors: the characteristics of the trader, market conditions, intensity of trade, when the player needs money, how much time he can devote to it. In order to maximize the investment in the assets of companies in the stock market, an investor should choose one of the popular strategies:
- Investing in the growth of a company or reinvestment is a process where companies increase their profits to optimize performance. With this strategy, you can expect to receive short-term earnings.
- Investing money in the value of assets is when an investor buys a security and then waits until the assets start to rise in value, when it is possible to sell them more expensive and get profits from it. With this investment strategy, you can only work with long-term transactions, while it is better to work with minimal volatility in the market.
- Invest money on a fall in prices, when money comes to the investor with a decrease in the dynamics of trading. In this case, the players sell the shares and then buy them again at a low cost.
- Invest money in income that will work best in an uncertain economic situation. In this case, it is customary to buy assets that will show steady growth in a difficult market situation.
A trader decides how to trade on the stock market and what position to take at the same time, because he must determine for himself, whether the intense intraday trading is suitable for him or he feels more confident, investing with more stable trading. For this, the player must know the answers to these questions:
How risk-adverse the trader is?
If a trader is not ready for a risky express trading, it is better for him to use long-term investments of funds, for which he can significantly prepare, study information about the asset, potential of the company, its nearest news and on this basis make his forecast. The stock market employs many traders who love and prefer to risk money by trading short-term assets. Features of such trading: high dynamics of trading, minimal opportunities for market analysis, risks of loss, high profitability, unlimited number of transactions, earning money in the nearest future (after 60 seconds, for example).
How much time can the trader devote to the market?
Work on the stock market attracts traders because they can easily build the most convenient schedule. At the same time, you can even take into account your main work, trade long-term or short-term assets, study market opportunities. So, if a player has the main income, it is better to invest in long-term transactions, because here, preparing for trading and placing a deal, he can do other things; no need to monitor the results of trading daily, spend a lot of time analyzing the market. Opening a deal, you can do the main work and at the same time receive dividends. If the stock market is the main source of income for a trader, then he has enough time for complex work here, he can trade different assets, pay attention to transactions during the day, conduct intensive and medium-term trades, etc.
How urgent the trader needs money?
If a trader needs money in six months or 1 year, then he can work with long-term investment. If he needs a quick income, then it is better to trade intraday transactions, engage in scalping, and make a variety of transactions, and getting a decent income, which can be immediately withdrawn from the system. So, when novice investors come to the stock market, they can choose a suitable strategy:
- Active, when an investor prefers to work with short-term transactions, while receiving a quick income. It is important to choose volatile assets, study news, company information, etc. With this approach, it is difficult or even impossible to combine trading with the main source of earning money.
- Portfolio, when a trader has not much time to work and he uses long-term transactions, carefully monitors the trends of the market and the companies.
- Mixed, when it is easier for a trader to choose a strategy for a specific market situation: it is either short-term or long-term transactions. The amount of capital for investment, experience and a great desire to achieve results from trading will affect success of such work.
Technical and fundamental analysis
When trading securities, it is important to study carefully the market, use all the tools that are available in the broker’s terminal, as this affects the result of trading. Among players are popular two types of market analysis, which have their own differences and peculiarities, but allow you to benefit from work; they are technical and fundamental analysis. We will tell you more about them in the next part of the article.
Fundamental analysis of the market is a common way to study the dynamics of assets and it is relevant in the stock market. It is important for traders and investors to study all the possibilities of the market, to find those trends and moments that can bring them potential profits. Correctly using the data of this type of analysis, you can increase an income at times. The peculiarity of the fundamental analysis is that it allows you to predict data on the dynamics of assets when you study financial performance of companies, evaluation of news and other important statements that affect the growth or fall in asset prices. In the work, here can be used news, statements of large companies and heads of Central Banks. Also a trader usually takes into account news associated with the change of economic indicators of countries: for example, an unemployment rate, index of business activity, volume of sales, the data on the key rate, etc., It’s also possible to take into account the materials on the state of macroeconomics of the countries, general economic background between them. All this affects the dynamics of assets, provokes its movement, and if you base on such information, you can correctly place a deal and make a profit.
This type of analysis requires accuracy, attention, study of a large amount of information, and, certainly, it is difficult for newcomers, more popular with experienced players who earn money on long-term investments, and they can also use it on medium-term and intraday transactions. This type of analysis brings a significant profit to the investor, but requires more time and experience in the market. Fundamental analysis is not suitable for those who earn on high-speed trading, because it is important to make quick decisions and there is no time for analysis.
Technical analysis is also one of the most popular types of analysis in trading, which allows you to determine dynamics of assets using «technical tools»: oscillators, indicators, different types of charts, shapes, patterns, etc. It is much easier than fundamental analysis, offers more opportunities to work with different tools. It is also easier for a newcomer to work with, because a trader can always choose simple indicators, easy strategies, successfully start his work first with them and gradually improve his knowledge and experience. Financial markets (Forex, binary options, securities market, etc.) do not exist on their own, here the numerous factors affect dynamics of prices that allow a chart to grow and fall, then show up or downtrend. For a trader is important to identify signals correctly, to be able to draw conclusions about the correct market forecast based on the technical data of various instruments. In this regard, you need to analyze different parameters: analysis of time intervals, trading volumes, etc.
Much attention here is to be paid to the signals of indicators and oscillators: if the first help to determine some average value of the price, the oscillators behave well in the sideways trend of the market. MACD, RSI, Momentum, Stochastics, ADX, MA are most commonly used on the market. By adding these tools to the chart, you can study their performance, dynamics, monitor data on overbought/oversold market, different trends, etc. In Internet, many different strategies use the signals of these tools and help a trader to make forecast and make a profit. These are systems focused on newcomers, experienced players, strategies that are suitable for high-speed trading, long-term investments, using candlestick patterns, patterns, support and resistance levels, etc.
What the trading courses are like and if a newcoming needs them?
When the traders immerse themselves in trading, begin to trade on Forex, options or shares in the stock market, some of them decide to improve their knowledge in this difficult way to get income and to look for trading courses. Trading training is something that can make a player more experienced, which will help to understand the market more and better, to work more confidently here, to analyze the dynamics of assets correctly and to use correctly various tools. Also is an opportunity for immersion in trading and preparation for profitable work on a real account. Training is an important stage of trading, to which not all users come, however, after passing the courses, a trader will have more knowledge, capabilities and experience than those players who study the market by trial and error.
When choosing courses in Internet, the traders will face with another problem – how to choose a suitable and high-quality one among those programs that you can find here, how to understand, whether it will be useful. Here, you should pay attention to whom the courses are addressed to: they focus on newcomers or professionals, allow you to learn the basics of the market or focus on the study of a particular tool, type of analysis. In addition, all courses have different duration; trainings can take place remotely or in the office, etc. There are paid and free courses, but which ones are beneficial to the trader and is worth paying money for information that is already available on Internet. We answer this puzzling question in our material.
Such courses are offered at a certain price. Here, a trader usually chooses a suitable price offer, as well as for the content of the program. Most often, paid training is offered by serious companies that provide training in trading. Therefore, the materials are taught by professional analysts and experienced investors. Here, in addition to the extensive and high-quality theoretical part, there is a large practical block, during which a trader not only registers an account with the broker and tries to make transactions under the guidance of a mentor, but also participates in the analysis of errors, finding a strategy. A trader can constantly communicate with professional traders; takes part in the chats and master classes, webinars, customer support, for example, during 1 month after completion of training, etc. With this approach, when a trader finishes the training, he is ready to trade in the market. The advantage of this approach that a trader avoids the mistakes and losses that would have waited for him in self-study, saves money, feels confident, because really knows the market.
The companies that provide training services in the market guarantee the quality of courses, allow only professional traders, who have achieved good results in investments in the stock market, to work with clients. This format is convenient for traders, especially for those who care about the quality of training. Choosing a suitable course, a trader can find something comfortable according to the program, duration and price. Market brokers and successful traders often provide paid courses. Next, we offer you a list of current paid trading trainings on the stock market, which you can use now.
- Trading training on the stock market with SDG-Trade
SDG-Trade company has been providing training services on American stock exchange for traders around the world for 14 years. There are high-quality programs for newcomers and experienced traders, which implemented a comprehensive approach to training: theory, practical training, assistance of a personal manager, etc. In «Basic» package, the course participants will be acquainted with the features of American exchanges, learn about the trading mistakes and how to avoid them, be acquainted with the styles of trade, technical analysis. «Advanced» package will focus on strategies, trading practices, market analysis, etc. In «PREMIUM» package, in addition to the theory of the stock market, you learn trading, use of strategies; there is a practical unit, 12 months of trading support, mentoring, access to courses, session records and work with a personal consultant, individual sessions with the traders of SDG Trade, conferences, webinars, etc.
Price: from $50
- Trading training in stock market with the service «Investments 101»
Online project «Investments 101» offers many opportunities for traders training in different markets, including for stock market players. After registration in the system, you can choose an appropriate course and take part in it online. There are available basic courses on trading, and advanced courses in stock trading, a program created together with the faculties of the famous universities. A trader can start training when he want, which is also convenient. In addition to theoretical classes, which are available free, there are also paid video tutorials; you can also hone your skills in the «Trading simulator». The project has a system of payment for access to closed courses with the help of coins, the number of which can be increased with constant activity in the project.
Price: upon request
- Trading training in stock market with TraderHub project
TraderHub is a community of professional traders with extensive experience in trading on the stock market, which trains market newcomers «from zero». All courses are of high quality; contain both theoretical and practical part. During the training, you get a full immersion in the market, study of its basics, working with strategies, analysis of the dynamics of quotations, trading in the market. Participants of the individual course expect: access to exclusive information that is not available on Internet, a personal proprietary account on exchange NYSE, a great experience of trading, which can be shared with market newcomers.
Price: up $150
- Trading training in stock market with Trade-UA
Trade-UA is a successful trading company that provides a range of services to traders trading on the exchanges NASDAQ, NYSE and AMEX. Here, you can also get quality training and trading in the stock market. The company is primarily focused on cooperation with newcomers and professional market players. During the training course there is a full immersion in the market: depending on the course, introduction to theoretical information, indicators, types of analysis, trading at different market conditions, analysis of transactions and work on errors. One of the main tasks of training in the company is to teach a player to trade in the market and to earn money steadily.
Price: from $300
- Trading training in stock market with Hi-Trader project
Hi-Trader is one of the interesting projects that also provide the trading trainings on the stock market. The profit traders with extensive experience conduct the courses. The purpose of training is to teach traders and investors to earn money from investments in exchanges, use high -yield instruments, be able to see signals and consolidate all knowledge in practice. After completing the training, participants receive support in the market. The company offers courses aimed at newcomers (you will be able to earn from 20 to 100 US dollars per day) and experienced traders (from 7000 US dollars per week.), after completion of the program «Investor», a trader will be able to receive a high income – «this is a door to the world of real capital, real to a fault».
Price: from $200
There are many different free courses available on Internet, so traders have a fair question about how good they are and whether it is possible to study them, if they are useful, as well as paid programs. Certainly, it is a more attractive option for a trader, and why pays, if information is for public access. But it’s not so simple. Most often, free courses contain only theory of the market, and a trader does not receive feedback and practical recommendations from a mentor, will not be able to ask him questions, does not devote time to trade under the supervision of a professional. In addition, there is another question -how much information here will be valuable, correct and practical, because often a free course is not an in-depth course, but only those materials that are available to the trader in Internet. Some of this information is false, incorrect, which, obviously, can lead to losses. If you buy a course, the company guarantees a quality of training and professionalism of the teachers. Free programs are simply available on the website, its author is unknown and nobody can guarantee their quality, etc.
You should remember that no one will share important information for free. Therefore, often such free training courses for trading in the stock market are a scam. In addition, a trader who teaches clients can be an interested party who wants only to get profit and does not teach his students anything useful. He may even be a special agent who attracts naive players in questionable projects, which then will continue to deceive them and promises high income.
In this case, there is a high probability that a trader will lose both his money and time using an effective strategy. If this strategy results in losses, a player will not get his money back. Free courses will never guarantee 100% of benefits and effectiveness of the materials. Often experienced traders advise to avoid them because there is a high probability that this is a scam. Next, we offer you a list of current free courses for stock market trading which are now available to the trader in Internet.
- Trading training in stock market with the service «Investment 101»
As part of this online project, you can use not only paid information, but also free courses, which there are enough in Internet. Among free courses are most often available a theory of the market, basics of stock trading, individual investment accounts, etc. As for exclusive and unique materials, they are not available for free and you should pay for them. It is convenient to work in the system; you can test trading in a special «Simulator», study articles at any convenient time. To get access to paid information, the coin-currency is implemented, and you can increase their amount, if you actively take part in the project.
- Trading training in stock market with Hi-Trader project
This project focuses on the professional training for traders and teaches them how to earn in the stock market. In addition to paid programs, there is also a free course «Newcomer», whose tips will help a newcomer to earn from 300 US dollars per month. This course is suitable for self-education. If a trader studies the market independently, trades on the account, studies strategies, he can count on help of the project on all issues arising during training.
- Trading training in stock market with the project «Exchange navigator»
The author of this project is an experienced investor Julia Mihailova. She compiled a guide for trading in the stock market in the format of a video course, which is available on the website absolutely free. It contains useful information on the financial market, for example, what are dividends on shares, what is the meaning of fundamental analysis, what is psychology of the stock crowd, what is an essence of the stock chart. The purpose of the project is to share experience and knowledge about the market with traders, to give them the experience on the subject of «trading». In order to receive materials, it is necessary to specify in a special form an e-mail address where the training course will be sent.
- Trading training in stock market with the course 7-trading-secrets.ru
On web site 7-trading-secrets.ru there is a free training course on trading in the stock market. If a trader uses it, he will learn about 7 steps for successful trading; get acquainted with a brief guide to the main methods of investment in 2019. In the course of reading, he learns how to make money on shares, how brokers manipulate traders, what is investment in social trading, what are the myths about trading in the market, etc. Also, he will receive valuable advice that will be useful to him in his work: how to choose a broker, know more about pitfalls in trading, where to start a newcomer, what tools are better to use in trading, how to minimize your risks, etc. The course will help to avoid a lot of mistakes that occur on trader`s way, will be useful both for a newcomer and an experienced trader.
How to avoid losing money trading in the stock market?
Trading on the stock market, all traders tend to earn money consistently without losses. But not all of them understand that it is important to know the features of this market, to work consciously with various tools, to think over a trading strategy, to trade on a demo account of the broker. In addition, it is important to understand that there are many «stumbling blocks» in the market, those factors that can also lead a player to losses. We talk about it later on.
- Stock broker’s «User agreement»
«User agreement» is an important document and every trader of the broker platform should read it. This document may have another name and is available on the broker’s website. Why is it so important for a trader? The fact is that this document contains information about the operation principles on the platform, what is included in the list of duties of the broker, what will be its reaction to different situations in the market, in case of problems with the terminal, etc. There is also a lot of information about rights and duties of the traders, about their responsibility when trading in the platform. Here, you can also find out how traders’ orders will be considered, in which cases they will get their money back or, conversely, the losses will not be compensated. It is worth studying this document at least once a week, because it can be updated by the broker, and knowledge and monitoring of its provisions is one of the duties of any trading participant.
If a client of the company does not know about the existence of the document, in case of trader’s complaints, a broker makes all decisions on the basis of the «Agreement». That`s why it is important to study it, to understand in which case a trader will be supported by the company, in which situations his complaint will be justified. In addition, in the «Agreement» you can find the points that «work» against the client and complicate his trading.
- Trading with a strategy
As we have already written in the article, trading on the stock market is not a casino or roulette. You can easy lose money and will not even notice it. Using strategies, different types of analysis, broker signals, you can study the dynamics of the asset, on the basis of all these data to make predictions and make a profit. The securities market is not as simple as it may seem. Here, trading takes place around stocks, bonds, promissory notes, etc. that are owned by the companies that have their own dynamics, excellent volatility. To trade a speculator needs technical and fundamental analysis, tools of graphical analysis, etc. A trader who invests, for example, in company shares or a share of business, studies dynamics of the company, but he also carefully examines the company’s prospects, etc.; he also needs his own strategy.
- Study a stock broker carefully
A trader who earns money from financial markets should cooperate with the broker, which will guarantee him honesty, transparency of trade, high-quality service, and trouble-free withdrawal of capital. In the search for such a serious broker, you should pay attention to several factors: its success, prestige, availability of positive feedback from other traders, etc. It is worth remembering that there are many scams on the market, they are all ready to offer their potential clients fabulous income and increased payments. Newcomers do not know about it and choose the first «profitable» broker, and then understand that this new company does not plan to have a long-term cooperation with them, does not withdraw profits, does not let them make money.
- Charge back is the way to get your money from a broker’s platform
If a trader faced with a scam artist and cannot return his money, he should not despair – there is a legitimate way to return them, using competently a procedure of chargeback. Today, this is a popular procedure to return money. The services of chargeback are provided by the companies which are well aware of all its subtleties, their staff includes lawyers with extensive positive experience. Moreover, this service will be useful not only for traders, but also, for example, for Internet users who have purchased a low-quality product/service, lost their money by participating in any projects. What is a chargeback?
This is a procedure of payment cancellation and return to the customer’s card, which is based on the rules of the international payment system, required for banks working with such payment systems. If banks work with them, they automatically accept their terms – IPS (International Payment System), must comply with them.
The user may initiate the chargeback independently, but a process is a difficult. You should gather evidences; prepare all the documents, to know how to make a dialogue with bank manager, etc. That`s why, sometimes it’s easier and cheaper to contact the company that provides services of assistance in chargeback; it will do everything to return your money: request the necessary documents, write an application to the bank, etc. To accelerate the return of his funds, a trader should accurately follow all instructions of the company that initiates a chargeback.
Trading psychology in stock market
When planning to make money in the stock market, a trader should study theory of the market, trade on a demo account, test strategies, constantly study the potential of assets, take part in trading training courses, and also decide what role is closer to him – to be an investor or a speculator. It is also important to remember the concept of «trading psychology» which studies such an important factor in this area of activity, as the emotions of the trader. A player must understand that emotions affect directly the performance of trading, that fears of losing money and self-doubt interfere with work, do not allow him to focus on the market and make the right conclusions about the dynamics of assets. We must not forget about the rules of trading psychology, which will help to defeat the emotions that prevent productive work and achieve results. About these rules we will tell you later on.
- You shouldn’t be afraid of trading
When the players begin to work in the stock market, they are, naturally, afraid to trade, to make forecasts, because after the change to a real account they have a fear of losing money. This fear prevents them from studying the dynamics of the asset, they lose attention, attitude to work, begin to make gross mistakes, and soon money ends on the deposit. How to cope with this fear? It is important to understand that losses will always be regardless of experience and success of the trader. This should not stop the traders and affect their desire to change life; on the contrary, the traders should try to work even harder, to improve their skills of market analysis and trading. His important purpose must be the need to increase profit and lower the losses.
- You shouldn’t be greedy
Trading in the stock market, a trader must understand that here attempts to earn all possible money will not lead to anything good. Thoughtlessly trading and concluding one after another transaction, a player is in a hurry and is not able to pay attention to details, loses attention, concentration and, obviously, loses his money. Moreover, a trader will notice this only when the system notifies him that there are no funds in the account. How to deal with greed? It is important to remember that an amount of money should not be the goal of trading, it is necessary to trade calmly, make informed decisions, and study the market carefully.
- You shouldn’t turn on the excitement
When a trader tries opportunities of the stock market, he should be aware that this is not a casino or a gambling game where he needs to guess the bet. The market does not tolerate a frivolous attitude; this work requires a conscious approach, preparation for trading, analysis of the situation. Here, both expenses and income wait for a trader. What should a trader do? It is necessary to be able to distinguish work from the game, which is accepted to apply for other purposes (pleasure, etc.). People turn to trading for an income and to make stable it is important to immerse yourself into the market, test trading methods.
- You shouldn’t forget about patience
The stock market can’t be called an easy way to make money. To achieve some heights and stability here is important to work hard. This should include trading training, testing market opportunities, and various assets. The stock market does not tolerate rash actions; patience is an important quality that can help a trader in the work: to be concentrated, attentive, be able to study the market and make the right decision. The newcomers are usually impatient, but how they can cope with it. It is important to be able to take some time to make a decision, carefully analyze the market and consciously enter into the transaction.
- You shouldn’t retrieve your losses
The stock market also does not tolerate attempts to recoup, if a newcomer suffers a loss and tries to return his money to the account. At the same time he does not notice that he loses his attitude and attention to detail. He hurries to make deals and, as a result, loses everything he had on deposit. Obviously, desire to recoup is a natural attempt to return the situation to a certain direction, but this is not the trade for which he was preparing. How to act in this situation? For a trader is important to accept his defeat; guided by the fact that, if he tries to win his money back, he will not be able to manage the situation and this will lead to even greater losses. Here, the decision is a long-known rule in the market, a rule of «three transactions», according to which after three unsuccessful transactions it is necessary to leave the market, not to trade and not to win back, otherwise you can lose money. This rule disciplines a trader, reduces a risk of loss and let him feel more confident.
Those traders planning to become market professionals need to pay attention to improving their experience, learning to trade, studying reference and other literature, testing strategies -such traders know these rules on their own, they build their work and hone their skills. In addition, they should understand that they cannot follow such a difficult way without reading professional literature. In the books you can learn a lot of useful tips, subtleties of trading, which tell professional traders and investors. Features of market analysis, profitable tools, and success stories, etc. – all this will share with a reader the legends of the trading world, who have achieved great heights in trading. In this part of the article we will tell you about the really useful books on trading, which is definitely worth reading to any player.
Stock market. The course for newcomers. This is a great option for those who have not yet any experience in trading, it will allow you easily immerse yourself into the world of financial markets, get acquainted with its basics, and exercises will help you to learn the material.
Investments by William F. Sharp. This educational aid will allow «from zero» and in an accessible form to obtain quality knowledge on investments in different assets. The book is considered one of the most popular textbooks for traders, students, novice market players. It describes the types of securities, investment instruments, a variety of charts and worksheets.
Investment valuation by A. Damodaran. This publication will acquaint a trader with the methods of valuation of companies, shares, venture projects, etc. All this a trader can also apply in practice, working in the stock market, where he chooses attractive assets.
Super trader by V. Tarp. This useful book covers the most complete all the features of day trading, contains information about philosophy and mathematics of successful transactions. In addition, it raises the issues of goal setting, psychology of trade, risk management. The book will help a reader to change from a trader to the super trader, learn about the secrets of successful trading and reach unprecedented heights, trading equally profitable in any markets.
Technical analysis. The course for newcomers. This is one of the best books on the basics of technical analysis, authored by experts of Reuters, a leading organization with a world-famous name. It is also a useful book that a successful investor and speculator should have in the library. The book is written in simple language and will be clear to a trader of any level and experience.
The alchemy of finance by G. Soros. One of the most popular books among experienced investors and speculators of financial markets, which tells about the famous financier George Soros, reveals to the reader the secrets of successful trading, a unique approach to trading and the George Soros philosophy.
Practical speculation by V. Niederhoffer. A stock exchange player with any experience should read this useful book. It will tell about the modern process of misinformation and propaganda that crash on a trader from the media every day, about how to avoid it and not to lose money on investments in securities.
Black swan. The Impact of the Highly Improbable, by Nassim Nicholas Taleb. This is the bestseller of the financial guru Taleb, telling about the shocks of modern civilization that change the course of history and life, which here he calls black swans. The author proved in practice the success of the «non-theory», which brought him half a billion dollars and became a true legend of the financial market.
The books that will help a trader to understand better the market and its laws, learn how to work and earn money here — this is a valuable source of information and is more than a good way to start a successful acquaintance with the world of the financial market.
Most professional stock market traders consider following the rules of risk managing to be one of the secrets of their success. Risk management is rules of managing risk, and there are a lot of them on the market: risk of losing money, fear, greed, desire to return the lost funds, etc. Using the rules of risk management, a player will prevent the losses and will be more confident to trade.
Ignorance of these rules is one of the mistakes of market newcomers who cannot keep track of their deposit and respond properly to the losses. In this part of the article, we will talk about the rules of risk management, which will help a trader easily to archive good results in the securities market.
- Minimal sum on the broker account
If a player has just started working in the stock market, he should not transfer all his capital to the deposit. He has no experience, no profitable strategy and is not able constantly to monitor the state of his account to stop work in time and save money. It is recommended to allocate a free amount for trading, which a trader can use in trading and in case of losses he will not experience large losses.
- Do not use over 5% for trading
Starting to work in the stock market, a trader should not invest all the money available in the account in one transaction, because in case of loss he will not have a chance to recoup and he will have to place more capital on the deposit. It is recommended to invest in the transaction about 5-30% of the amount of capital. This rule is not difficult to explain: there is no insurance against loss in trading, especially, if a newcomer trades. If the transaction completed at a loss, he can continue to work and get his money back. With a small loss of money, an amount of the deposit will not change significantly, and a trader will not be disappointed in the stock market.
- Minimal amount of assets
If a trader only starts to trade in the stock market, he should not invest immediately in a large number of assets, because to earn from the investment he will need carefully to examine their characteristics and factors influencing their dynamics, etc. Only experienced players study the trading tools very carefully. Market newcomers will not be able to devote time to a full analysis of each asset, do not track the balance of the deposit and lose all the money. Thus, it is better for a newcomer to work with 1-3 assets and only after he has achieved positive trading dynamics with them, he can learn other tools to invest money.
- Impassive trading
Working in the stock market, is important to «turn off» all emotions and trade only with the right attitude: here you need attention, confidence, speed of reaction to a trend change, analysis, etc. It is very difficult to trade, if a player is afraid of trading and focuses on the market interfere with fears, uncertainty. Emotions are a real enemy for the trader, which a trader should eliminate as soon as possible: they prevent him from fully immersion in the market, do not let make adequate market analysis and notice important moments.
- «3 transactions rule»
This simple rule works on the stock market too, and it will allow a trader to minimize losses, save the deposit. Its means that after three transactions, regardless of their result, you need to leave the market, to do, for example, analysis of trade, study of market theory, etc. If the trades have led to losses, do not try to return the money, and if you win, do not improve your result, trying to win all the money – it will only lead to losses.
- Keeping a diary of transactions
The diary of transactions is not just information about all trades, with the right approach, it plays an important role: from the detailed records a trader can find out what strategy is more profitable for him, which timeframe or asset is more effective, he can see the percentage of profits and losses, what affects such a result, etc. All this a trader can find in the diary of transactions – one of simple but useful tools to improve your trading performance. Using these data, a trader can adjust the strategy of the market, for example, he will not use those tools that do not bring him earnings. A thorough analysis of the dairy of transactions will help to eliminate easily the shortcomings in the work of the trader and improve his results.