The world of trading can feel complex, especially as a beginner. Many people try to learn to trade and ultimately give up, none the wiser. It might be that they made a loss which put them off, or it could be that trading just felt too complicated. This leads many people to ask the question: “Can you learn trading by yourself?”
In this article, we’ll explore whether it’s really possible to learn to trade alone, or whether there’s a better way of learning to trade that you should know about.
Is It Possible To Teach Yourself To Trade?
It’s perfectly possible to teach yourself to trade, even as a complete novice. However, it’s not an easy task.
Trading carries an inherent risk, meaning that it’s easy to make a loss. If you’re inexperienced in the market in which you’re trading, that risk will inevitably be higher. So, before you decide to teach yourself to trade, it’s important to be aware of the risks and ensure that you’re comfortable with them.
However, if you’re ready to learn how to trade, continue reading to discover how you can learn to trade by yourself.
How To Learn To Trade By Yourself
Learning to trade can be frustrating. It requires patience, perseverance and an element of failure. It’s almost guaranteed that you’ll have many failures along the way, and you need to be prepared to learn from these. Learning form your mistakes is what will make you a better trader and help you to build experience and knowledge in trading.
Here is a step-by-step guide to teaching yourself to trade.
1. Open A Trading Account
This step may seem obvious, but the first thing you’ll need to do before teaching yourself to trade is to open a trading account. Take a look around the account and begin to get used to the features offered. It might feel complicated at first but it’ll get easier as you become used to the interface.
2. Learn About The Market
Whether you plan to trade forex, crypto or stocks, you’ll need to learn about the market. There’s a wealth of information out there that you can tap into, you just need to know where to look. Try reading financial articles, books about the stock market and website tutorials. The more than you can learn about your chosen market, the more successful you’re likely to be.
It’s also a good idea to begin following the market in your spare time. Every morning, try to read about the overnight price action on foreign markets. Immersing yourself in the trading market will help you to get into the mindset of a trader, standing you in good stead for when you begin trading.
3. Learn To Analyse The Market
Once you have a good understanding of the market, you can begin to learn to analyse it. Start by studying the basics of technical analysis and begin looking at price charts. Traders are usually looking for price action that diverges sharply from underlying fundamentals, so that’s what you need to look for.
Learning to analyse the market is a complex process which can take years. Rushing the process is likely to lead to costly mistakes, so your focus here needs to be on gaining a deep understanding of market analysis.
4. Start Practicing Trading
Once you understand the market and have learnt how to analyse it, it’s time to start practicing trading. There are lots of trading simulators out there which allow you to practice trading without using real money. This is a great way to test out your trading knowledge without the risks that come with using real money.
When you’re happy with your abilities, you can try trading for real. It’s a good idea to begin with a low level of investment that you’re happy to lose if it goes wrong. From here, you can begin to build up an investment portfolio as your experience deepens.
5. Develop Your Trading Strategy
The final step is to continuously develop your trading strategy. You’re bound to make mistakes from time to time, but this is how you’ll learn. When you make a mistake, you’ll work out where you went wrong and avoid making the same mistake next time.
Eventually, you’ll begin to establish your own trading strategy which you’ll rely on for your trading activities. This will continue to develop as you gain experience in trading.
How Long Does It Take To Learn How To Trade?
There’s no set period of time that it will take you to learn how to trade – it’s different for everyone. Most people will have a good working knowledge of trading within a few years, although it can take up to 5 years to become fully established.
If this seems like a long time, you’ll be pleased to know that there is an alternative which will allow you to get involved in trading much quicker than learning the ropes yourself. You could even begin earning a profit within weeks.
Learn To Trade Through Copy Trading
If you’re desperate to get started with trading and don’t want to spend years learning about the markets, copy trading is a great way to learn to trade. It allows you to build experience and knowledge without the high levels of risks that come with traditional trading.
Copy trading allows you to get started with trading straight away, by mimicking the trading actions of an established trader. You can use this as an opportunity to study the markets and watch what your chosen trader chooses to do.
If you pay close attention to how your chosen trader reacts to the changing markets and what trading actions they take in response, you’ll soon begin to build your own knowledge and experience.
When you gain a deeper understanding of trading, you can begin to decide whether to follow or ignore your chosen trader’s actions. If you agree with their choice, you can mimic their trade. If you disagree, you can choose to ignore it.
By carefully watching your chosen trader, you can quickly build up experience in the trading markets, without taking your own risks. This can give you the knowledge and experience that you need to begin traditional trading on your own in the future.
Is Trading Easy To Learn?
Trading can be complex and it isn’t without its risks. To learn to trade effectively, you first need to study the market in which you plan to trade, whether that’s forex, crypto or stocks. You’ll then need to learn how to analyse the market so that you know how to make trading decisions.
Trading typically takes several years to become fully established, so it’s not something you can learn quickly. If you want to learn how to trade without the high risks typically associated with traditional trading, copy trading can be a great way to get started. It allows you to learn about trading through an experienced trader, taking a hands-on approach.
Can You Get Rich By Trading?
Trading can be a lucrative investment and it’s true that some people can make high levels of profit through trading. However, it’s important to remember that trading carries an inherent risk and you can make a loss if you make the wrong decision.
If you’re looking to minimise your level of risk, copy trading is a great way to get started. You can earn money whilst following an established trader. You might even learn something about trading yourself!
What Type Of Trading Is Best For Beginners?
Traditional trading can be both complex and risky, with even the most experienced of traders becoming perplexed at times. It can also take several years to learn how to trade, making it difficult for beginners to get started.
Copy trading offers novice traders a way to get started with trading without the high levels of risk that usually come with it. By mimicking the actions of an established trader, you can benefit from their experience and knowledge whilst earning your own profit.
Find The Best Copy Trading Platforms
It’s perfectly possible to learn how to trade yourself, but it isn’t easy. The markets are constantly changing, making trading both complex and risky. If you make a poor trade, you could lose money, meaning that the stakes are high. That’s why many people study the markets for months or even years before beginning to trade.
Copy trading is a great way for beginners to learn how to trade. You can follow the trading actions of an established trader, mimicking their trades and earning your own profit. Whilst copy trading, you can begin to learn about the fast-changing markets and begin to establish your own trading strategy.
However, your success in copy trading is dependent on choosing the right copy trading platform. There are many scam platforms around, so it’s important to be vigilant when choosing the right service to use.
I’ve spent the past decade researching, testing and reviewing hundreds of copy trading platforms to find the best services on the market. I’ve made the mistakes so that you don’t have to. You can find my top rated copy trading platforms in my top 3 services guide.
If you’re ready to learn how to trade with copy trading, check out my top 3 rated services guide today.
I’m Jon, owner of Trade Wise at https://tradewise.community/ and https://www.youtube.com/channel/UC7VmOx8DbvX4Rbrac2pPcjw
I review forex and crypto trading products and services to find the best of what’s out there for creating a passive income without becoming a full-time trader.