At TradeHero, we find our users to be skewed towards a younger demographic. Many of whom are eager to learn the know-hows of trading. We have received queries from them on how and where to start learning the tricks of the trade. In most cases, these users are not just looking for overnight success in the stock markets, but rather a better understanding of trading in the financial markets.

Learn the basics

For many of you, trading might not be your first thought every morning. You have a job and your profession lies elsewhere. But setting aside ample time to learn the basics of investing should be the first step you should take.

To become truly proficient in investing, it will require knowing some basics of how businesses operate, how the stock markets and foreign exchange (Forex) works and what the economy is about.

We are not implying that you should change jobs and join the finance sector but rather, to take time and read about how the economy and markets work. You could start by flipping through your local financial publications.

Neither are we asking you to complete a nine-month course in finance or economy. Learning is a continuous process. You need to keep reading to stay abreast with the rapidly changing market conditions.

In subsequent post, we will also be introducing some books that we think are valuable to you. For example, Market Wizards, has been touted as the ‘bible to trading’ by many traders. Or the Intelligent Investor, a book which will make you rethink everything you have ever known about investments.

There are plenty of online resources that can help you learn about companies and the financial markets. Khan Academy has done a fantastic job in providing a huge library of video tutorials teaching people about finance and capital markets. There are also websites which can give you a good understanding of financial terminology.

Setting your goals

Many of us aspire to be successful, and each of us has our yardstick for success. Knowing what you want to gain from trading is very important. It determines the kind of trader you will be, and also the time-effort required. To some people, trading is a full-time job, while some trade to earn extra income and others trade to invest for the long term.

For example, someone who is trading on a daily basis would be trading at high volumes, taking more risks and using bigger leverages as compared to someone investing for the long term.

A person investing for the long term would make much lesser trades within the same period and would only invest a small percentage of his capital in the market, taking little or no leverages.

Be with the right company

Social interactions is the simplest form of learning. A great deal of knowledge can be shared easily when communicating with people of similar interest. While it may be hard to rub shoulders with Warren Buffet, the internet can definitely provide the next best alternative.

On the internet, there are community-led websites like The Motley Fool, where like-minded individuals share their knowledge. You can find discussions on topics relevant to you such as the markets you want to invest in and also the kind of asset class you want to trade.

There are also social networks built for people to share their interest and knowledge on trading, such as opinions, stock tips and trade recommendations. For mobile applications like TradeHero, you can even get timely alerts and information from other traders you follow.

Practice and Discipline

To quote Outliers by Malcolm Gladwell, it will take any person 10,000 hours of practice to achieve mastery in a field. If you spend 8 hours everyday practising, you will probably reach nirvana in about 5 years. Sounding a lot like a full time job? But remember that we are not asking you to attain mastery standard. Setting aside one or two hours a day to learn and practise will be sufficient, moreover, investing is going to be an important lifelong skill.

There are many ways which you can be practising. You could start trading with a small amount of real money in markets. Or, if you seek a safer approach as a beginner, you could try trading simulators or trading demo accounts.

TradeHero is a trading simulator built for mobile. If you have been trading regularly on the application, you are already practising and polishing your trading skills.

It takes lots of discipline to be good at trading. For example, a disciplined trader would determine his stop loss before each trade and faithfully execute it. He would not taking unnecessary risk by holding onto an open position and wait for the market to turn in his favour. It is easy to read about cutting a losing trade but in reality, it is harder than it seems. Even the most experienced traders can make this mistake.

This article presents only a basic outline of how to start learning about the financial markets and polishing your trading skills. In future posts, we might explore each idea in detail. Leave us a comment below, message us on Facebook or email us to let us know what you would like to know more about.