Becoming a good trader does not happen overnight. It takes time, patience and, above all, good training to be able to perform well in this activity. Offered by agencies specializing in finance, training schools or even by some accounting firms, trading studies have many advantages for the learner. In most cases, the quality of these courses determines the student's mastery of the various tools used in this activity. Here is everything you need to know to succeed in your trading training.
Why train in trading?
Becoming an excellent trader in CFDs, stocks or other derivatives is not as easy as it seems, especially for people who have no background in the field. Indeed, trading is a very broad discipline that is almost impossible to master without proper training. Trading is essentially short-term stock market movements, and focuses on intra-day operations, i.e. the buying and selling of assets during a stock market session.
To practice in this field, a perfect knowledge of the financial market and a mastery of the functioning of the different tools that compose it are therefore essential. To acquire all this knowledge by self-taught is impossible. Don't count on free online courses that promise wonders in only a few hours of training, because most of these announcements do not generally deal with the issues in depth.
For all these reasons, it is highly recommended to take a professional training course from a legally recognized organization or a specialized center. Several training centers offer quality online courses to learn trading in the best conditions and quickly succeed in your stock market investments. Whether you are in Paris or Geneva, these organizations offer training in the four corners of the world.
The trading course allows you to acquire the basic knowledge necessary to carry out analyses in order to determine the relevance of placing an order at a specific time. You will also learn about the different characteristics of financial assets and their management in a specific market.
For those who wish to pursue specialized studies, this training also offers the possibility of acquiring advanced knowledge in different areas of this activity (management of structured products, regulation of derivatives, etc.).
The benefits of a trading course
In addition to the knowledge gained from your studies, trading training also has many other advantages for future novice traders. It allows the trainee to discover this activity from all angles. In fact, a training course that leads to a qualification gives you the opportunity to understand the functioning of the markets more quickly. It also makes it easier to find your place in the professional trading world.
Generally composed of several modules, the training allows you to know the different types of trading as well as their mode of operation. It also helps you master the important terms in order to understand the language used in this field and to communicate more effectively on the markets. The right training will help you master concepts such as leverage, spreads and ROI (Return Of Investment).
Your studies will also help you to prepare yourself better, to understand the risks of this profession and to know the classic mistakes to avoid, in order to be ready to become a successful trader. Apart from the theoretical part, a proper trading education also includes a practical part that consists of applying the different lessons received. This part of your training allows you to familiarize yourself with technical indicators such as the Bollinger Bands, the SAR parabolic, the MACD or the DMI. These are all tools that will help you become a better trader.
How to choose your trading education?
The performance of a trader depends largely on the knowledge acquired during his training, but also on his experience in the field. In order to find the right course for you, the trainee trader must take into account certain criteria.
Define your needs and objectives
Each trader apprentice has his own learning mechanisms. While some may prefer the physical presence of an instructor for direct communication, others may opt for online courses because of their many advantages. In any case, the type of training chosen should allow for easy and spontaneous interaction with the instructor. Before choosing between physical and online training, analyze the possibilities of communication with your trainer and opt for the one that favors more interaction.
In addition, you will also have to choose between individual and group training. For obvious budgetary reasons, many people will opt for a less expensive training by choosing group courses. However, it is preferable to choose a private training in order to benefit from a personalized training, adapted to your profile. Indeed, these types of training offer a certain closeness with your trainer. This could facilitate your learning.
Finally, you should choose between a long training course with courses spread over several weeks and a shorter course focused on specific trading points. Whatever the length of your course, make sure it fits your goals and your availability.
Opt for a well-known and recognized training center
Nowadays, there are many ads on the Internet offering "miracle" trading courses. Be sure of one thing, it is almost impossible to master all the contours of this profession in just a week or a few days, especially when you are a beginner. The choice of a good training depends largely on the establishment or the training organization. To avoid unpleasant surprises, choose an organization that has a good reputation in the trading field.
This will ensure that you have access to quality training in conditions that are conducive to learning. Before making your choice, don't hesitate to ask the opinions of former students of this organization or to consult the reviews on the Internet.
Focus on a specialty during your training
Trading generally consists of buying and selling different types of financial products (stocks, stock options, currencies and other derivatives) on a market. Although the training will give you a general idea of how the financial market works, you should choose a specialty that will depend primarily on the type of assets you wish to trade. This allows you to have a global know-how on the one hand, but also to benefit from a certain versatility thanks to your specialization.
Some pitfalls to avoid in trading training
Even though there are many scams when it comes to trading studies, some courses are of impeccable quality and seriousness. However, it is important to remain vigilant in order to avoid the many traps present on the Internet.
Training without practice
To master the basics of trading, it is important to add to the theoretical training some practical exercises on the ground. In other words, an effective training course must allow you to practice the knowledge you have acquired on different types of markets. You should therefore have access to a trading station during your training. If you don't have access to a trading station during your training, then chances are that your training is incomplete. The ideal course should allow you to make a financial investment yourself without too much difficulty.
Training that is too general
The purpose of the course is to teach you the basics of trading, but it is also essential to know some of the details in order to be better prepared. A course that only covers the basics of the trade is not recommended. Moreover, you should also be wary of "jack-of-all-trades" courses, i.e. those that teach trading from A to Z in a very short time.
Indeed, as this is a very broad field, you will have a hard time remembering everything the trainer has taught you. It is best to go for courses that teach the basics of the discipline while incorporating some of the important concepts of the profession into the program. So check the details of the programs before you enroll in a trading course. In short, a course that only covers the basics of the trade will not be effective in teaching you how to trade effectively.
Training based on a single indicator
Contrary to what many unscrupulous trainers may teach, an indicator must be associated with several elements of technical analysis. Training courses that often present a single indicator as the miracle trading technique should be avoided at all costs. This includes courses that only promote one trading strategy, namely "their" strategy.
Training that is too expensive
A trading course should not cost you an arm and a leg. Unfortunately, these types of courses can be found here and there on the Internet. They are even more common than you might think. To avoid these types of very expensive training courses, find out about the prices before embarking on such adventures.
Indeed, paying for example 1000 euros a week to learn the basics of trading can be considered as a scam. So beware of these unscrupulous trainers and choose courses whose content is really worth the price you pay.
To find the best value for money course, don't hesitate to compare the different offers before making your choice. Certain times of the year are also good times to train. It's up to you to ask the training institutions to get an idea of which training best suits your budget and your goals.