What are the best ways to learn trading?
If you know nothing about the stock market and would like to learn trading, the best way to learn it would be to read a few books on the following topics.
1. General Stock Market – If you have no knowledge about stock, you should spend some time to learn how stock market works and read a few books.
2. Technical Analysis – It is a strategy that traders use to predict the price trend of a stock. Short term traders use this strategy to make profits by reading charts. The theory is history repeat itself and so dose the charts. In my opinion, technical analysis is the most profitable strategy and the easiest to learn. Below are some popular technical indicators that are used widely by wall street traders.
- Candlestick Charting
- Moving Average
- Exponential Moving Average
- Moving Average Convergence-Divergence (MACD)
- Stochastic
- Relative Strength Index (RSI)
- Commodity Channel Index (CCI)
- Money Flow Index (MFI)
- Bollinger Band
- On Balance Volume (OBV)
- Average True Rang (ATR)
I will explain each of the technical indicators in more detail later.
3. Fundamental Analysis – is a strategy that long term investor uses to invest in companies. They spend a lot of time researching the company, sector, general market, competitors. They study company balance sheet and try to predict how the company will do in the future. I use a little of fundamental analysis when I trade stocks. Most of my time are spent on technical analysis and so this blog will talk about technical analysis for swing traders heavily.
