Trading Forex, stocks, or cryptos requires very specific knowledge and discipline. To be a successful trader must use trustworthy and credible sources for trading portfolios. As we all know, nowadays, it is not simple to find reliable learning resources because of clickbait and misinformation. In this article, we will try to present important sources which are considered user-oriented and trustworthy for learning online trading.
So this will be our main focus during the article where we will divide the learning process into three main steps. After following these steps, you will be ready to trade and make money online without facing common challenges such as lack of knowledge or misunderstanding.
Step One: Introduction to the Online Trading World
First of all, you need a good introduction to online Forex or crypto trading and its specifics. There are some steps to go through before you start FX or any other market trading with real money. You need to know how the financial markets are operating, who are participants, and how the trading world works behind the scenes.
In this step, you also learn about fundamental and technical analysis. All professional traders use both analysis types. They combine macroeconomic events and important news. Then it is needed to analyze price charts with indicators and other technical analysis tools to see the best entry points on price charts.
Entry points are desired asset prices where you can buy or short-sell them. Acquiring this basic knowledge will lead to step 2 where you will need to understand currency pair specifics and fundamental and technical analysis in more detail. You will analyze price charts and use the most popular trading platforms. You can use some trustworthy online Forex learning sources like LearnFX.com to learn more about online trading.
Step Two: Trading Platforms and Market Analysis
After understanding how the Forex market works it is essential to equip yourself with proper technical analysis tools. Good charting software or a full web trading platform will achieve this goal. There are two types of analysis tools as mentioned above: technical and fundamental.
Fundamentals are macroeconomic events, important news, and overall economic indicators. But fundamentals are only the first part of the equation before opening a trade. The second type of analysis is called technical analysis and it is crucial to understand how to use it. You will need a trading platform like MetaTrader4, MT5, or Tradingview to see price charts and use indicators.
Indicators are mathematical algorithms that constantly monitor the market live data and give various signals about its conditions. Remember that indicators are key in measuring the pulse of the market. To always be competent on what’s happening on the macroeconomic scale you will need to monitor the economic calendar for important news events. After you get the fundamentals you can add technical analysis to it and make your predictions even better.
Step Three: Demo Trading and Testing the Waters
After you have the fundamentals and know the basics of technical analysis and trading platform software, it is time to open your first trade on a demo account and test your newly acquired abilities. Demo trading refers to trading the market with fake funds. Sometimes it’s called paper trading. It means you have an account with your preferred broker and have fake money on your account.
When you open your trade it doesn’t go to real exchange but software makes real-time simulation of the market. It copies real-time price movements and enables you to feel like you are trading with a real account. You can open buy and sell orders to see how it works. With demo trading, you are trading real-time markets just without real risks.
There is a popular web-based trading platform with its programming language “pinescript” called Tradingview. It is a free charting platform and offers some advanced functionality with the option for paper trading. With paid plans, you can add as many indicators and open as many charts as you like, but for beginners, the free option is better. You can use TradingView as an alternative to MetaTrader. Just search for the desired currency pair or any asset and then open the chart, there you can have a watchlist of your favorite trading instruments and monitor every detail of each trade.
We strongly recommend practicing trading on a demo account at least for 3 months before going for real money. Some experts and professional Forex masterclasses also recommend trading on a demo account for 6 months. Don’t take these recommendations lightly. They can save you lots of money. Also, Keeping a record of your trading history is a very good way to learn from mistakes and improve your trading skills. Demo trading removes the emotion of losing real money. This is good for strong trading discipline and emotional intelligence which are the main skills all successful traders possess.
Jason is the Marketing Manager at a local advertising company in Australia. He moved to Australia 10 years back for his passion for advertising. Jason recently joined BFA as a volunteer writer and contributes by sharing his valuable experience and knowledge.
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