Learn The Basics Of Financial Trading For FREE
If you have never traded before and curious as to whether this is something you would like to know more about, my advice is to learn all the basics for free. There is an unlimited amount of free information on the internet but as with all things some of it is good and some of it is rubbish and could ultimately cost you money!
I could easily write a 200 page EBook on Financial Trading for beginners. Why have I not done this? Simple, the good, reputable trading brokers want your business. They also want to make sure you understanding the high risks when trading so some of them now provide really good free and comprehensive education for beginners online and this is accessible for anyone.
The best free training education I have seen is with the trading broker IG.
I recommend not to risk money trading the financial markets until you have completed this course. A bit further down I have listed all the topics that IG cover on trading from buy and sell spreads, risks, technical analysis and so on. Suffice to say they have organised everything into easily digestible modules.
I think this is a good way for you to get to understand all the basics of Financial Trading and then decide whether it’s for you, without the need to part with any money. If you have already traded for some time I still recommend doing this course as a refresher, especially if you are struggling to consistently make money.
For members of the Financial Traders Café I will continue to do live training on how you can apply what you have learned to the markets today such as when certain stocks and indices have hit major support and resistance lines, trend lines or certain moving averages prices and charting patterns. Also, I will report on when the major news days will happen which could shake up the markets and affect trades you currently have open.
Importantly, I report on why certain trades are being executed and others are not and then how these trades are managed over the days, weeks and months ahead and then the magical moment when profit is banked. This is for educational purposes to help you become a better trader.
Once you have learned all the basics this does not mean you will become a successful trader, just as somebody who has learned to play golf will not be playing off a handicap of two when they first start!
You need to be very clear about what you want to get out of financial trading. If you just dip in and out for a bit of fun and excitement don’t expect to see any great results. In fact, you will just be easy bait for the sharks to take your money. Do you want to personally trade to build wealth, an income or both?
You have to be realistic and build your trading account in a responsible, business-like way. Ideally, you will keep your losses small and have big wins. If you see my day trading account you will see precisely that. Please bear in mind that I am never risking more than 1 or 2% of the account on any one trade so I always remain in control with stops and limit orders in the right places.
So how much you trade per point should be aligned to the size of your trading account or you will run the risk of hitting the margin requirements set by the broker. I’ve lost count of the number of times new traders have told me how they blew up their account because they spreadbet far too much per point on a trade in the hope of landing big bucks. You may get lucky once or twice but you will get caught in the end and usually when the markets go into a tailspin on bad news. Just think of it like not spending beyond your means.
By keeping your trade sizes small, to begin with, you (no more than 2% of your trading account) this will discipline you into trading sensibly and then when you are consistently in profit each week you can start increasing the trade sizes. So you are scaling up your trading account, adopting the same process that has been successful for you.
Patience is the key with growing your trading account systematically through the ‘Power of Compound Interest’ which the brilliant Albert Einstein said was the Eighth Wonder Of The World.
If you see my Trading Profit and Loss account you will see how it grows through small trade sizes that increase each month as the trading account increases. This is how the power of compounding works!
You can click on the history of every trade made by checking the Compound Interest Trading Challenge on this website. This shows you all the winning and losing trades and the overall profit to date.
I can’t say what the trading account will compound up to but if you are intrigued to find out then you just need to keep watching. Some of the videos of this are also on The Financial Traders Cafe YouTube channel. If you want to come on the journey then you are very welcome to become a member and join the Financial Traders Café community right here.
Do you know how many hours each week you are willing to commit to trading? If you think about it how many hours a week would you expect to work if you were paid £2000 per month, after deductions?
I have heard some people say “don’t you need to be glued to your computer screen all day?” The answer is you can trade all day if you want but my advice is to avoid over-trading. As a day trader, the absolute maximum time I am at the screen is 10 hours a week, sometimes it’s just 20 minutes a day. That’s because I have automated everything from the moment that the trade has been made. With trading individual stocks this consumes about 4 hours per week of my time.
There is so much more to learn especially when you are in amongst the action and making day trades. Your mental state and emotions will be tested to the limit. You will experience frustration and on occasion, exasperation. Nothing really can prepare you when you are using your own money. Trading is extremely emotive and you will very quickly find out if you have negative associations to money.
One secret I will share with you is this…. detach yourself from money. Don’t make it out to be a big thing. Desperation to make money will repel it rather than attracting it to you. You will make the wrong trades and hold on to losing ones for too long and close the winners much too early. The most successful traders remain cool and follow their system. They will never beat themselves up if a trade doesn’t work out and they have to take a loss. They just move on to the next trade. This does come with confidence. Good traders never fall in love with any stock, forex pair and they are not biased to trading long or short. You have to get out of the way of your thoughts and emotions and trade in the zone.
To become a proficient trader and develop good habits, disciplines, and control, this is where a trading coach can help. Helping you to identify good trade set up’s by following a step by step process and knowing the most strategic places where to buy or short sell.
A good investment and trading coach will help you consistently make money so you smash your targets and importantly continue to show you the trades they are doing and the results. They will also give you accountability and motivation. They may also analyze the trades you have made and if you have made mistakes they will help you to avoid making them again.
If you think about it, people who play sport and want to get better will hire a coach to improve their game. Basically, if you believe in constant and never ending improvement this is where a coach is invaluable.
I know from experience that when I wanted to get really fit I read everything about health and fitness but the missing ingredient is someone to personally help me. If I want someone to motivate me and keep me on track I will go to a personal trainer. They hold you accountable for the goals you set and won’t let you off the hook easily. They will help you achieve your goals, give you structure and importantly routine so you get into good (not bad) habits.
So when people have learned the basics the next step is to find a coach that will help them to put the theory into practice which is to consistently earn money from the financial markets. This is where the work really starts!!
Trading really is a mind game just like many sports, the difference being that if you get the psychology right you have a good chance of making a lot of money. Get it wrong and you will never make money. I coach traders on how to get into the zone so they become completely detached from money and ultimately the result.
It will take time to find your way around the different markets you can trade, how to make your first trades and knowing how to use the trading platform. You will also need to learn about financial and technical analysis and navigating your way around the charts. Don’t get put off by what all the charting patterns mean. You don’t need to know everything immediately such as what three white soldiers or the hanging man mean!!
Beginners One Day Course with Adam Collingwood
I have left this until last as I would prefer that consume the above information first.
I have said that you can learn the basics of financial trading but this is theory so if you want to be able to see the theory in practice then I invite you to spend a day with me.
So for people who prefer to learn in an interactive classroom type environment, I do run one-day workshops which at the moment are £497 for beginners and for a maximum of 12 people which is the most our boardroom can fit comfortably!! I also prefer smaller groups as it is more personal and I can get to know everyone individually. I have my own unique style and personally run these workshops myself.
I cover a lot of ground including doing several live trades using my own personal trading account. Not only will you see me day trade live but also how I use my secret formula to hunt for UK and USA stocks to go on my short list to buy or short-sell at the most strategic time.
For many years now I have used IG and their trading platform. I also teach how to get the best out of using this platform and the awesome ProRealTime charts that you will have access to.
Having tried many charting software, I believe they are the best. However, whether you choose to use them or not is entirely your decision.
This website may receive compensation from IG for this activity
I wish you every success with your trading,
Modules on the FREE online Trading Course with IG
Course 1 – Introducing the Financial Markets
Course 2 – The Basics of Technical Analysis
Course 3 – Orders Execution and Leverage
Course 4 – Planning and Risk Management
Course 6 – Trading Psychology
Course 7 – How spread betting and CFD Trading work
Course 8 – Fundamental Analysis
Course 9 – Choosing a market to spread bet on
Course 10 – Understanding risk and reward
Spread bets and CFDs are complex instruments and come with a high risk of losing money rapidly due to leverage. Leading brokers state that approximately 76% of retail investor accounts lose money when trading spread bets and CFDs. Before trading you should understand how spread bets and CFDs work, and whether you can afford to take the high risk of losing your money.