Stock trading is a complicated world, and it’s one that requires a lot of research in order to be navigated successfully. From learning about what causes stock market shocks to simply locating opportunities for buying, selling and holding certain stocks, there’s a lot to get your head around. This blog post will share some of the best resources available to newbie stock traders – and how you can take advantage of them.
Learn about indicators
Picking up technical indicators for the first time can be complicated. From stochastic oscillators to the relative strength index, there’s a lot to understand – and if you don’t have a high-level mathematic or scientific background, then even the idea of a chart itself can be enough to frighten you. However, technical indicators aren’t something to be scared about. They’re good ways to interpret wider market sentiment and use it to your advantage. Often, technical indicators are simply expressions of the decisions that other traders in the same market are making – and that’s knowledge from which you’ll benefit. Spending some time working out what each of the major indicators mean, then, is a good idea.
Back in the day, the stock trading world faced something of an information deficit. Traders could source information on which stocks to go for (and which ones to avoid), but there was often a time lag between making the informed decision and executing the order. Now, it’s possible to use the web to take instant, accurate decisions.
A really good stock site, especially those that come with breaking news functions, can provide you with the information that you need to make good choices. It’s also worth keeping an eye on the business pages of newspapers. As your trading career builds, you’ll be able to develop the skill of filtering out irrelevant content that doesn’t fit your own trading portfolio – so don’t worry if you feel a little overwhelmed at first.
Before getting started with real cash trading, it’s wise to have a quick practice or two first. Many brokers offer demo accounts, and some even offer up to £100,000 in virtual cash – so if nothing else, it’ll be fun to try! For those who really want to learn, though, virtual trading gives you the chance to see how it feels to make trading decisions in an environment that doesn’t come laced with risk. Once you’ve used the demo platform to iron out kinks in your system and move beyond emotional, in-the-moment decisions, you’ll most likely be ready to move on to the real thing.
Stock trading is a tough nut to crack, but it’s one that can be quite lucrative if navigated in the right way. There are several ways that a new trader can make their experience easier, though. From reading about technical indicators to trying out your new skills on a demo account first, there are plenty of ways to make the process that little bit simpler.