The trader today has so many tools available to make trading easy. Best of all, most of these tools are available without subscription charges. Trading your own account from home has never been easier.
Trading for profit
Trading is about making decisions. With training, you’ll see just how easy that becomes. After all, at any given time, the only decision available is to BUY, SELL or do nothing.
The goal of trading is to make a profit on the trade. This means buying at a lower price than the selling price. With most instruments traded, you can make a profit in both rising and falling markets. This means you can buy and then sell, or sell and then buy. As long as you sell at a higher price than when you bought, you’ll bank a profit.
Good patience and straight to the point
G.S. – Essex – July 2013
Tools of the trade
One of the main tools of the trade is the charting software. In general, this is provided by your broker without charge. Your charting software provides a visual representation of the price and the historical movement of the price. Indicators are another feature of the software to help interpret the likely next movements in price.
You’ll learn how to use, read and understand the charts provided by your broker. Most importantly, you’ll read the signals given by the markets and translate these signals into actions enabling you to BUY and SELL at the appropriate times.
Will I lose money?
Because trading is easy to learn and the trading software is easy to use, many people have a go without being shown how to trade properly. Frequently, these people end up losing money. We call this style of trading “gambling”. This is not something you should try to emulate.
When you learn to trade like the professional traders, you will focus on risk management. You will read the signals in the market and place your trade. To expect every trade to be profitable is unrealistic. Risk management is the method by which you will restrict your losses on trades that go against you.
If you were a sports player, you wouldn’t need to win every game to become a champion. In trading, the same is true. Our trades can deliver a large or small profit or a large or small loss. Risk management is about making sure you eliminate the large loss. It is just one aspect of trading you will learn with Plan B.