Why Trading Learning Doesn't Work
The Internet has long been filled with advertisements for a variety of training, courses, and seminars that promise 100% effective training in trading from scratch, regardless of gender, age, education, and abilities.
The issue of the effectiveness of training in trading still generates a lot of controversies, and each side puts forward its own well-founded arguments.
Do you need training in trading and why it does not always work
The problem is not in learning how to trade as such – it is necessary for beginners, otherwise how to understand the meaning of the terms, how to open and close deals correctly, when to enter and exit the market, etc.
The problem lies in false statements when the acquisition of theoretical knowledge is tied to success in the financial markets and put an equal sign between them: “If you drain deposit after deposit, take our mega course and after that, you will be guaranteed to withdraw profit pay-by-pay” and many believe this.
Education has long been a business, like many other things in this world, amid growing interest in financial markets, Forex trading training is selling well and is a profitable product.
A lot of different people come to the financial markets with different levels of training and individual qualities, not all of them can become professional traders, because, as you know, only 5% of traders regularly earn, and the remaining 95% suffer losses or work at 0, and this the percentage almost never changes. There is only one way to understand whether you are part of this 5% – in a practical way.
The reason is also that many of 95%, in reality, do not want to understand the reasons for their failures, and they almost always do not depend on theoretical knowledge.
Introspection and self-criticism are not common to everyone. Having drained another deposit, such traders, instead of identifying and admitting their mistakes, blame everything and everyone.
Trading is nothing more than a way of making money in financial and stock markets by trading various investment instruments: currencies, securities, CFDs, etc. For an uninitiated person, trading with its complex terminology seems to be something absolutely inaccessible. But for those who have been trained and become a professional, trading is an open book, every word in which carries a clear meaning and, most importantly, makes a profit. But in order to earn money through trading, you need to take the very first step – to undergo training.
Trading Courses: Learn, Learn and Learn
Today, you can find many trading training courses on the Internet, which are offered by large business schools, professional traders, and even people who have a very distant relationship to trading. Therefore, in order to master at least the basic basics of trading, it is very important to choose the right way and place of training. All courses can be divided into several groups depending on various criteria.
By level of knowledge
- The beginning of training in trading. These are courses for those who have just decided to become a trader and need basic knowledge. In the course of training, designed for two (or more) weeks, students take the first steps: they get acquainted with the most important concepts of trading in investment instruments and at the same time try their hand at trading. Classes include a theoretical part in the form of lectures, seminars, master classes, and a practical part, where all acquired skills are practiced. On good courses, classes are conducted under the guidance of a curator who is ready to advise the listener at any time on the issues that have arisen. During their studies, novice traders actively discuss financial market news, learn to make forecasts, and conclude their first deals.
- Advanced training course. Designed for those who already have basic knowledge and skills in trading and want to develop them. In different business schools, training is organized in different ways, but usually, it takes place in small groups – from 5 to 25 people. Program participants attend master classes, seminars, and lectures by experienced and successful traders. The purpose of the classes is to give students a deep understanding of the processes taking place in the financial markets, the psychology of risk management, to consolidate and improve professional skills and abilities. Based on the results of the training, the investment portfolio is protected, which confirms the fundamental and technical knowledge of students.
- Professional training in trading. This is the next stage of training for those who want to make trading their main profession and are interested in deepening the relevant knowledge. In the learning process, students conduct independent research on a topic related to trading – its methods, strategies, charts, etc. At the end of the training, a final certification is carried out, for example, in the form of protection of an individual trading system. In case of successful defense, some educational institutions issue a diploma with the assignment of the “Trader” qualification.
By the principle of payment
- Free courses. They are recommended for novice traders since they are the ones where the basic information is most often given. A significant advantage of such courses is that the listener can easily leave them or switch to others in the event that he does not like something or wants to get more information. However, it should be understood that free courses provide only the minimum of necessary knowledge, which, most likely, will not be enough for independent work. It is very important that free courses provide introductory information on-exchange trading, types of different markets, types of their analysis, risk management. In addition, knowledge about stockbrokers, trading terminals, trading using robots will not be superfluous.
- Paid courses. In many of these courses, basic information is also given, but, in addition, in good courses, you can master a valid working trading strategy. It is advisable that the teachers on paid courses themselves have serious experience in trading, and during their studies, they regularly provide students with support in the form of personal consultations. The main advantage of paid courses is high quality. Listeners are offered only information that is really important and necessary for work, in the required volume and in an easy-to-understand form.
By audience reach
- Individual training has a higher cost, but it has a lot of positive aspects. The listener studies all the main aspects of trading in more detail and in-depth and receives good practical training. In the process of individual training, a personally experienced mentor is always involved, with whom the student can consult at any time on all incomprehensible or complex issues. In addition, in the course of study, you can adjust the program so as to focus specifically on the “weak” areas of the student. Individual training allows you to quickly go from a beginner in trading to an advanced specialist.
- Teaching in groups. The advantage of studying in a group is the immersion effect: the listener not only forms his opinion on a particular issue but also gets the opportunity to learn the opinion of his colleagues, discuss and choose the most optimal way to solve the problem since communication activates the thought process. In addition, learning in a group is stimulating because there is a kind of competition between colleagues. Another plus is the lower cost of training compared to individual courses. The disadvantages of this form are insufficient personal attention to each listener. The group form of training does not imply the analysis of every question that is incomprehensible to a particular student, which means that not all the necessary material will be mastered to the required degree.
Taking into account the peculiarities and differences of the group and individual forms of education, it is possible to recommend starting the path in group classes, and advanced training – on an individual basis, in order to, among other things, fill all personal knowledge gaps.