Do you want to learn stock trading? Are you fascinated by the stock market? Millions of people are trading stocks and earning a decent living. Being a stock trader, you don’t have to focus on any other day job. If you can do the math perfectly, you can take advantage of the leverage trading account in Singapore and trade the market with discipline. But this is not as easy as it seems. You have to learn a lot about this market. Only then will you be able to trade the stock market.
Learning is a very hectic task which might take years. What if you can learn stock trading in just 4 weeks? Read this article if you are interested in learning stock trading in such a short period of time.
Study the price data
The first step is to study the price data. Try to understand the nature of the market. You don’t have to know the core element at the initial stage but studying the price data will give you a clear picture of the market. You will get a general idea of how the stock market works. Learn to use the law of supply-demand in the historic price data. In trading terms, it is called the support and resistance level. We sell stock when the price hits a resistance level and we buy it when the price hits a support level. By studying the price data and growth at a reasonable price, you will get a decent idea about the trading industry.
Open a demo trading account
After going through the basics, you have to open a demo account to get access to the exchange traded funds market. This will allow you to trade with the virtual dollar. It’s like a practice trading account where you test your trading skills by using different techniques. Try to trade the support and resistance level. Forget that the time frame that you have in the mind. Spend the first week just to trade the support and resistance level. After you learn how to take trades at the support and resistance level, learn to use the trend line tool.
Learning to use the trend line tool is the most important task for any ETF traders. Due to the strong trending nature of the market, we need to execute the trade in favor of the major trend. If we can take the trade along with the major trend, we can expect to make a big profit. Sadly the new traders always trade against the major trend. This is one of the reasons for blowing your trading account. So, learn to trade with the major trend in the demo account.
Revise your risk management plan
After creating a trading method in the demo environment, it’s time to create a risk managing plan. You should create a risk managing plan while keeping everything in mind. If you take more than a 2% risk in the ETF market, you will be in big trouble because you won’t be able to recover the losses. Try to create a trading method in such a way that you can always win big money and lose only a small portion of your capital. This is called the risk to reward ratio. The minimum risk to reward ratio for each trade should better than 1:3 or else you should not take the trade. Remember, a strong risk management plan can protect your trading capital
Follow the tips in this article and you will expect to become a skilled trader in less than 1 month. Though you will have many problems you can overcome them over the period. Stop breaking the rules and take trades in a disciplined manner. Stick to your goals and you will be able to make a decent profit without having much trouble in the market.