Trading the financial market becomes very attractive to newbie investors because it can make you rich in few weeks or months or wipe out your account very easily. It is considered one of the most relax and lucrative business in the world. All websites related to trading financial market will tell you that you can learn trading without headache at all, they provide tons of informative reading materials and free courses on how to use technical indicators so that you can predict the next market movement from their website for free, they will even let you trade using their demo account with a virtual money. Trading is actually very easy to learn, there are only two process involve, buying and selling, you buy the stocks or currency in lower price and sell it in a higher price, the difference will be the profit, very easy and anyone can trade, that is why lots of newbie traders jumps in the trading arena believing that they are ready because they already learn how to read technical indicators and they can now profit in the market. The truth is, too many gamblers are entering the arena without any plan or strategy, completely blind and unprepared, and that is why at the end, they lose. What you read in those free websites are not enough, my suggestion is at least purchase a good book published by a well known publisher or author, or enroll in an online trading institute if you want to have an advantage, because if you are serious in making money in trading, you need to get ready because you are competing with the best traders in the world.
And since you are now reading my blog, I will tell you the most important thing that all newbie traders must first undertake before even considering entering the market. The very first time I traded the financial market was the forex, I learned forex from merely self studying (I am sure lots of you are also self-learned) and my only resources are those free articles in the websites, then I open my account and in just over 15 hours of exhausting trading, I wipe out my account. It was a very painful and costly experience, but I never stop, I continued to research and start purchasing books, and in my surprise, many of those I read in the books can be found everywhere in the internet for free, that instead of navigating into different sites to find worthy information about trading you can have it now in one book, did I just purchase for convenience? Sad but true, that is why I told at first, learn how to find a good book if you plan to purchase in the future. To continue my story, I found a very good book that answer all my questions, I found what is missing in my trading style, and that is the Trading Plan. After learning the trading plan, I told myself that I was so foolish to trade the financial market without this.
In my next post, I will discuss fully how to create your first trading plan.