With the Australian financial services sector currently delivering $140bn to the country’s GDP each year, it’s no surprise that more and more people are starting to think about how they can break into it. Trading is just one part of this lucrative world – but it takes a lot to learn how to master. From getting the right resources to understanding how your own psychology plays a role, there’s a lot to consider. This article will delve into the world of trading in more detail and explain how you can get ahead in it.
When learning how to trade, finding some resources and educating yourself about the world that you’re going to go into is an important first step. There are plenty of books explaining the basics of everything from charts and indicators to the difference between technical and fundamental analysis. It’s also worth looking at eBooks as many insights from modern traders can be found there.
However, learning never stops when it comes to trading. You’ll also need to think carefully about what resources you’ll need on a day-to-day basis. Reading the stock market pages of major newspapers such as theSydney Morning Heraldis a wise move, and these can advise you whether to buy, sell or hold. The Hammerstone “The Feed” is full of breaking news headlines delivered straight to your device, so you won’t miss anything. Finding a good economic calendar with big financial events highlighted is also a good idea. If you trade the foreign exchange markets, for example, then you’ll need to know when major interest rate decisions are coming out – as these can impact currencies in a profound way.
Practice and demo accounts
Many leading brokers offer a demo account function, which allows the trader to use virtual cash to place some trades and get a feel for the task. For traders who are excited to get started and put their new-found knowledge into action, practicing first can seem like a waste of time. However, no book or news source can replicate the intuitive knowledge that comes with action on a trading platform, so it’s wise to always have a go first in a risk-free environment.
While financial knowledge is vital for trading, it’s also important to make sure that you have the right mindset. Trading is an up and down sort of a profession – it requires discipline, and it also requires an aversion to knee-jerk reactions. Some traders are tempted to panic and cancel trades when the market turns against them. However, it’s wiser to plan ahead and have a strategy in place, and only make serious decisions if they fit with the plan. That way, you won’t make an emotional decision you later regret.
Learning how to trade, then, is a tough job. It’s not as simple as signing up to a trading website and getting going: instead, it’s wise to find some resources first. Scheduling in some time to practice is also a good move, as it can allow you to quickly master technical indicators and other complex tools before trading real cash. Whatever route you choose, it’s important to have the right mindset – otherwise you may get a bit ahead of yourself!