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10 Best Trading Education Methods That Work: It is a very widespread misconception that the stock market is just a landmine stepping on which you will lose money. This could be true in the case of a person who stepped into trading with no or half knowledge of the stock market. Trading is an art in itself offering the person who masters it great financial gains. It is an ever-changing world that appeals to people who wish to build wealth. Learning the concepts of the stock market is essential for a beginner to know about various trading strategies, tools, techniques and how to analyse market fluctuations to make informed decisions.
Even if you have years of experience, it is essential to keep on learning if you want to keep being successful in trading. The objective of learning is to get the fundamentals right for a beginner and for an expert, it is about refining their skills. Keeping yourself updated on the market changes and polishing up your skills will certainly give you an upper hand in this sector. In this blog, we will discuss about 10 best trading education methods that work for beginners and experienced traders.
10 Best Trading Education Methods That Work
There are several ways in which we can learn the stock trading. But all of these ways might not work for everyone. Some of these ways may not be even accessible to some people. So let us look into a few best trading education methods that work for everyone.
Real-Time Chat Rooms
A good Real-Time Chat Room that offers education is very hard to find. This method doesn’t work for full-time traders because they do not have the time to chat as well as trade at the same time. But if you can find such a chat room, then it will help you a lot. Here you will get real-time feedback and alerts from expert traders. This is a very good way to learn as you absorb all this knowledge from the experts in the group. It is almost like real-time mentoring which is very economical. Here you will get alerts when a trade is set up and you should ask questions about them as they happen. You have to learn the variations in the strategies from other traders as you trade as well as get feedback on your results.
The problem with a chat room is that if they are not properly moderated then the less serious members will start sending random messages and memes to the room. Messages about only the trade setups should be allowed. Another disadvantage is that you might find its monthly price expensive. It is also possible that the strategies talked about there might not work for you while trading. Finding a good quality chat room which teaches you the things you want to learn is also very difficult.
Signal Services
Two types of signal services are offered. One suggests trades to you while not giving a substantial reason why that trade is being suggested. While in the other one, teaches you the trading methods along with alerting you when a trade is being set up. So obviously, the second one is the better choice as to become a successful trader one should learn to trade instead of acting on the signals provided by another.
The pros of this method are that it is easier to follow suggestions and it will offer real-time examples for trading. The cons are you have to be constantly on vigil for signals. If they are late or if you miss them then you will miss the entries and exits entirely. It also makes your learning process very slow as it promotes only forward testing and not backtesting. This method also might make you heavily dependent on the signals.
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Webinars, Seminars and other Live Events
These events may be organised with a particular subject or topic as a headline. So, attending such events is a very good way to learn about specific topics that come under trading. When you consider learning as a long-term process this might not be the best solution. They don’t offer any long-term support for your learning process. But this might be good as you will pick up lots of good ideas on the process but only if you take good notes or have access to transcriptions or recordings. Still, it might not be able to give you a big picture of the topic of discussion. It is very short, focused and does not take up much of your time. You can also interact with other traders and get valuable feedback from them or learn new news in the industry which you may have missed somehow.
Forums and Trading Groups
Being part of a forum or trading group can be informative. Here you can discuss, bring up queries and learn from expert traders who are willing to participate and share knowledge. But the issue is that in a forum, anyone could post anything. The information provided here cannot be always considered legit. Someone can always make up things and misinform everyone there. That is why we can see that many may start their learning in forums but quickly move on to other platforms. This is indeed essential as forums are often very messy. But as we said before they are a good source for tips and ideas if you are sufficiently knowledgeable and can know what info might be legit and what is not.
One benefit of a forum is that it is free to join one normally. Here you will often get great tips and ideas in the subjects coming under trading. But it might be difficult to filter through the threads and find legit advice. There is a tendency in the forums for discussions to turn into arguments and even end up in name-calling. You will also receive opinions that contradict each other, and this might be very confusing for a beginner.
Related Article: How To Learn Stock Trading In 2024
Books
Books are never out of fashion when it comes to learning. There are many books written by very knowledgeable and experienced traders that provide good advice and insights into the subjects coming under stock trading. When it comes to learning trading strategy and trading psychology, books are the best sources.
Books can be difficult if you do not have a good comprehension of language or if the expert who wrote the book is not good at explaining things. You also cannot ask any doubts or discuss the ideas said in the book with the expert who wrote it. It is also true that some topics are hard to learn from books. Some trading books you have to read are:
- The New Market Wizards by Jack Schwager
- Market Wizards by Jack Schwager
- Trade Your Way to Financial Freedom by Van Tharp
Best Trading Education Methods: Online Courses
Online Courses are the best way to learn trading in the present-day world. You can access them in the comfort of your own home or while commuting back from work. It is also cheaper than most offline classes and also allows you to learn at your own pace. This is very helpful in saving time and expenses as the commute to the institution is not needed. It is also very useful for people who are already working but still want to learn.
Interaction with expert mentors and peers is a great device for improvement for traders. They will also provide useful information and study materials that you need to get started. But you cannot expect long-term support in trading from these online courses. The online course will not work if the mentor is not good at teaching. Another con of the online trading courses is that they tend to put more importance on trading strategies and neglect the trading psychology altogether which in the real world is as important as the former one. However it is an online trading course with a well-rounded curriculum. Have you heard about the Stock market course offered by the Entri App?
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Blogs and Other Social Media
They cannot be used as a sole source of learning. Indeed, finding a good blog or YouTube tutorial can boost your education to a very good extent. Many video tutorials are very easy to follow and contain thoroughly researched and tested information. But you have to make sure that you limit the time and do not spend much of it scrolling through the screen. They are a great resource to learn tips and trading strategies. Here you might also be able to find the posts made by a specific trader or writer whom you may find inspiring and gain insight from them that might not be available anywhere else. Most often these resources are free or come with a very affordable subscription charge. There are many cons associated with this resource. Many people begin these posts as a hobby and tend to drop them when they realise how little revenue they make. Similarly, if the posts have been being made for several years, then it will be very difficult to find the ones about the topics that you need.
Mentorship Programs or Private Tutoring
If you can afford a private mentor then it is the best way to learn. But even this method might have drawbacks. The best way to select your mentor is to ask successful traders who they trained with. Here you may learn many things that an educator might not teach in public platforms. They also provide regular course corrections and feedback. However, finding such a teacher is very hard as there are no platforms that review educators offering such services. It is also very expensive. There is the possibility that the person you have chosen as the mentor is a highly efficient and successful trader but a below-average teacher. The other possibility is that the techniques taught by them might not match your personality.
Financial News and Magazines
Even though you have attained good knowledge in the basics it is essential to keep up with the latest news in the industry. You have to keep yourself updated with the most recent financial news and analysis. Reading financial newspapers will help you understand market fluctuations and trends. It will also inform you about new trades being set up. They might also have good editorials in which experts discuss their ideas and methods. Major financial newspapers a trader should read are:
- Fortune India
- The Hindu Business Line
- Business Standard
- MoneyControl
- Entrepreneur India
- Forbes India
- BW Businessworld
- Bloomberg Businessweek
- Reuters
- The Economic Times
- The Economist
- Fast Company
- Bloomberg Quint
- Google Finance
- Livemint
- Adweek
- Business India
- Yahoo Finance
- NDTV Profit
- Business Today
- Outlook Money
Stock Market Simulators and Paper Trading
Perfectionism is attained with practice. You can trade with virtual money using the stock market simulators, getting expertise without having to risk any of your money. Paper trading is where you use a spreadsheet or piece of paper to make simulated trades, much like stock market simulators. It’s a low-risk method of testing trading methods and evaluating their results.
Sometimes learning is done best when you try the trial and error method. There are situations when learning is best accomplished by doing. As you gain confidence and experience, progressively raise your investments from the tiny starting cash that you can afford to lose. It is not one of the best trading education methods but it certainly works for many.
Frequently Asked Questions
1: What is a stock?
Name a few newspapers and magazines a trader must read.
Some of the newspapers and magazines a trader must read are given below.
- The Hindu Business Line
- Business Standard
- MoneyControl
- Entrepreneur India
How is social media helpful for learning to trade?
Social media helps in the form of research-based and educational blog posts and video tutorials posted by experienced and knowledgeable traders.
