Australian (ASX) Stock Market Forum

Learning to trade

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After seeing a couple of people mention starting out learning to trade in their posts, it got me interested in how people start to learn trading these days and what their experiences were. If anyone is willing to share their experience it could be helpful for others.
 
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Understanding Stocks by Mike Sincere is a great book that I'd recommend to learn the basics first. I'd then progress to using a paper account or dummy trading account to get a hang of how things work before you use real money on the line.
 
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Personally, I think basic technical anlaysis with a simple trendline trading technicque is the safest way for someone to start understanding the ins and outs of the market without too much risk to their capital. Advanced technical anlaysis on the other hand takes years to master properly but if someone finds T/A suits them then they can grow their skills over time. As for the best way to learn - find a reliable educator who runs a basic trading course. 'Reliable' is the difficult part as most want big money for modest information - ie they are in it for the money. If the educator provides mentoring all the better as someone holding your hand can be very valuable while learning. If you can't find a mentor you will find forums like this one have many members with years of experience who are happy to answer your questions (and question your logic) all day long. Certainly, read whatever you can as I always take something away from most trading books - but keep it simple at the start (and as tugga82 says, paper trade first is a good plan. My tips are 1. Don't act on tips unless your analysis supports them; 2. Stick with the ASX 100 stocks until you feel comfortable to move beyond these generally more secure stocks (and leading on from this point don't invest in low value, specualtive penny dreadfuls or IPO's or stocks listed for less than a couple of years); 3. Never buy in a downtrend; 4 (should really be point 1!) always, always set a stop loss, being a point you will sell (not think about selling) should the trade not go your way.
Good luck with it.

PS: Several years ago I realised my SMSF share trading just wasn't showing the results I wanted so I looked around at educators and found the industry chock a block with failed snake oil salesman. In the end I took what was then the only government approved T/A course (you used to be able to get Fee Help if you did it full time - which I did over about 2 years). Wealth Within was the firm. They are still around and you might want to watch some of their You Tube videos or read their principal traders books. They were a very expensive course but the content was good (although no course is perfect). Unless you are someone who can cope with the logic and maths that advanced T/A requires you might find yourself spending big dollars for no good reason. WW do run a cheaper basic course these days I believe, but I don't know what it entails.
 

Sean K

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After seeing a couple of people mention starting out learning to trade in their posts, it got me interested in how people start to learn trading these days and what their experiences were. If anyone is willing to share their experience it could be helpful for others.

My brother is a stockbroker. Comes in handy to have someone talk you through it first hand.

Friends of mine have wanted to get into it and I've invited them over to sit next to me for a few hours researching stocks, looking at charts and placing trades.

So, if you know someone in the game, ask to watch it live. Probably needs to be a good friend.
 

tech/a

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Unfortunately it takes many years in the Technical Analysis field of learning to understand

("You need to know what it is you dont need to know") (" Before you know what it is you need to know.")

The vast majority of course information falls into Part 1 with the lure that more $s will open the doors for you to Part 2
 
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Unfortunately it takes many years in the Technical Analysis field of learning to understand

("You need to know what it is you dont need to know") (" Before you know what it is you need to know.")

The vast majority of course information falls into Part 1 with the lure that more $s will open the doors for you to Part 2
Totally agreed. Experience hones the skill over time. You can go long a stock and make money and I can short the exact same stock and make money. The goal here of TA is to not hit a home run but to be very consistent. One has to preserve the capital and that objective has to be met at all times. On another note, STRAT is a new way of trading that is emerging here in North America and a lot of technical analysts that I know are moving to use it for high probability set ups. Benzinga Pro Blog - a financial website I believe has the person who created this method of trading. Personally, I am also experimenting and learning the Strat. Happy to bounce ideas.
 

tech/a

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Had a quick look.
Nothing I can see that interests me.
But happy to follow your posts.
 
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