Learning to trade the financial markets has never been easier. By connecting to the internet and your laptop, you can now learn to trade in this trillion dollar market of currencies, mutual funds, stocks of the largest global companies, as well as sources of energy, precious metals and other available commodities and financial instruments – it can be traded on a trading platform to make it easier for you and provide investment opportunities that will help you make money.
However, with so many options – over 3000 tradable markets – you may be wondering where to start and how to learn to trade, which can be very confusing questions.
Where do I start trading?
Before you start learning how to trade currencies and the stock market, it is important that you have the right setup and tools to trade from the start. There is no point in taking a series of beginner forex trading education courses and then finding that you do not have the proper trading tools and platforms to implement the trading ideas and strategies you have learned.
To start learning to trade you will need the following:
If you want to buy gold or Apple stock, you need to find someone who owns what you want and is willing to sell it to you. The agent does that for you. Through its platform, it connects you with other buyers and sellers in the forex market or with futures contracts that you want to trade.
You may not meet the person on the other side of your business, but thanks to innovative and ultra-fast technology, you can buy and sell global financial market instruments in seconds using market orders provided by your broker. Since the broker is where you deposit your trading capital, make sure they have the best possible license – so you know your capital is in a safe and reliable place.
For example, investment firms operating under the Admirals registered brand offer top-tier licenses from the JSC and several global licenses such as the UK Financial Conduct Authority (FCA), the Australian Securities and Investments Commission (ASIC), the Financial Supervisory Authority of Estonia, and the Cyprus Securities and Exchange Commission (CySEC). Furthermore, our trading platform system also includes a negative balance protection policy to protect you from harmful movements in the market.
Open a trading account
2. Trading Platform and Demo Account
The trading platform helps you view charts of the price history of the instrument you are trading and provides you with the orders you need to place and manage your trades. Some people may have a trading platform that is separate from their own broker’s trading platform. With the advent of advanced trading techniques, you can now have your charting platform and your broker trading platform in one place with the suite of MetaTrader products.
Admirals offers the following MetaTrader trading platforms:
MetaTrader Supreme Edition (MetaTrader platform developed exclusively for Admirals)
Through the above platforms, you can learn to trade a variety of markets such as global indices, commodities, energy sources, and stocks. And if you want to learn how to trade forex, all of the above platforms also offer foreign exchange (forex) trading.
Most importantly, these platforms allow you to trade on a demo trading account so you can implement the Learn Forex 4 Steps plan – which you will learn more about later in this article – and also practice the trading techniques. Skills and strategies you learn in a risk-free environment.
Once you have properly prepared, you can proceed with the trading courses and trading training as will be explained later.
Teach trading from scratch
Before we look at how you can learn to trade from scratch with the step-by-step plan, it might be worth spending some time studying some of the trading details that you really need to learn. A novice trader may often think, “I want to learn everything!”.
But even if it were possible, most people would find it too complicated. The key to trading education is to learn step by step and break those details down into small trading training chunks.
Here are some of the key elements to understand when learning to trade currencies and stockshave to consider:
1. In what timeframe will you trade?
Most traders often lead busy lives away from the markets. Whether you have a full-time job, a private business, or a family to support, structuring and organizing your trading time is essential when teaching to trade.
For example, if you’re interested in learning how to trade currencies (Forex), you might be amazed that it’s open 24 hours a day, five days a week. But it is unlikely that you will be available all the time to view and trade the market’s charts. Therefore, creating your own routine can save you a lot of stress in the long run.
Knowing when to look at the markets and what time frames to analyze can help you make your trading decisions as it organizes your day better. Many inexperienced traders check the charts at random times and juggle between different time frames just to look for something. If you look at the markets without a specific objective, you are more likely to end up making hasty decisions or feeling frustrated. Either way, it can weaken your decision-making process and make you more likely to lose your trades.
There are three main trading sessions in which you can plan to trade:
European Session (6:00-17:00 GMT)
American Session (from 1pm to 9pm GMT)
Asia Session (22:00 – 5:00 GMT)
The charting platform gives you access to nine different timeframes:
4 hour chart
1 hour chart
30 minute chart
15 minute chart
5 minute chart
One Minute Chart
By observing these timeframes, you can take a closer look at the markets and price movements on the charts of different timeframes.