It is entirely possible to learn to trade using free online resources. The main challenge with learning to trade using free online resources is the overwhelming amount of information available to traders. You need to have structure when learning to trade so you can start with the simple concepts before advancing to the complex stuff once you have a strong foundation.
Here is a look at the key concepts that you should focus on mastering when using free online resources to learn how to trade the markets.
Focus on understanding basic concepts and key terms
As a complete newbie to trading, you should focus on understanding exactly how trading works. Some of the key concepts you must understand include how to place a trade, what are long and short trades, and the reasons for placing each trade. You should also have a basic understanding of the global currency markets and how the different currency pairs move.
You should not start trading until you have a solid understanding of how the markets work and how to trade them. The key to learning all this is to take your time exploring each topic until you have a solid understanding of most of the content. Do not rush this process. Most beginner traders make this mistake, much to their detriment.
What to do if you know the basics of trading
Traders who are familiar with the basics of trading are at great risk of assuming that they are ready to trade the market, but this is rarely the case.
Ask yourself some questions to determine whether you are ready for trading. For example, do you have a proven strategy for trading the markets? Have you back-tested your strategy? Do you have a solid risk-management plan?
The losing or break-even level trader has a lot to learn as they are likely to have some hidden weaknesses that are preventing them from becoming profitable. It is much easier to learn a new skill from scratch than to correct bad trading habits entrenched in your behaviour.
Learning new trading habits
The key to moving from an intermediate level trader to a professional trader is to monitor your performance and focus on learning content that can help you improve your trading results. For example, you could study risk management to improve this aspect of your trading. You could also focus on learning different aspects of technical analysis, such as how to identify breakouts.
The most important aspect of developing new trading habits is to focus on learning one thing and then applying it until you have mastered the concept. Do not rush to study other concepts if you have not mastered the concepts that came before it because habits are built in stages.
Never stop learning about the financial markets
Trading is a high-performance skill with many similarities to competitive sports such as football, basketball and even Formula 1 racing. The best performers in each of these sports never stop training and learning new skills, even though they are at the top of their careers.
Successful athletes know that the key to sustaining their excellent performance is to keep honing their skills because they start to lose their skills if they do not practice. The same applies to traders at all levels; you have to keep practising if you want to retain and improve your skills.
So, where do you start?
You could start right on this site, where we have answered hundreds of questions from other traders about different aspects of trading the financial markets. We also have specific guides developed by experienced traders covering many aspects of trading that could be very useful to your trading journey. You should dedicate at least 30 minutes daily to learning about trading and the financial markets if you want to be a successful trader over the long term.
The bottom line
You can learn how to trade the markets using free online resources from websites such as ours. However, you must have a solid structure for your learning process to ensure that you do not learn haphazardly and develop bad trading habits. Remember that it is much harder to unlearn bad habits than it is to learn and apply good habits from the start of your trading career. You should never stop learning regardless of whether you are a profitable trader or a beginner.