Many people are introduced to trading or investing by reading a book or online article or by watching videos on the subject. Most of what is published is the same sort of retail information in different forms. Some of this information can be extremely dangerous and expensive for traders to follow because it is misleading and/or incorrect. However, even if it is good data on how to trade, knowledge is only part of what is required to be successful in the markets.

Think about it this way, if you were to search the internet, you are likely to find directions and videos on how to remove an appendix. No matter how many times you watch the videos, most people would not be comfortable allowing you to perform the surgery. So, what is the problem? You have the knowledge, right? Well, what is missing is the experience and skill that is needed to ensure that the surgery goes well.

Just imagine trying to become an airline pilot. There are plenty of books and information on the internet on how to fly. There are even flight simulators available online. How comfortable would you feel flying with someone who had only read about flying and never had any real-life experience?

Flight Training

There are two things required to become successful at pretty much anything; and learning how to trade is no different. The first is knowledge, and the second is skill. Having one without the other isn’t enough. Knowledge is the foundation, the information needed about the subject (in this case, how to trade) and how to be successful at it. Skill is something you develop over time and through proper practice under the watchful eye of a mentor.

Applying this to trading and investing, knowledge would be broken up into several parts. There is knowledge required to understand how the financial markets truly work and how to discern order flow from the institutions versus the novices. This information is critical when learning how to trade. Further knowledge is required to create a step by step plan for trading and investing with high probabilities and low risk. Simply put, you need a proven, rule-based plan. Trading and investing correctly means taking calculated risks, not blindly jumping in and hoping for the best.

Then comes the skill. A great plan is worthless without the skills to implement it with discipline. To develop a skill, you must practice the fundamentals to build that skill. In trading and investing, the fundamentals are the ability to read price action and identify quality supply and demand levels. Part of knowing how to trade successfully is recognizing the trend and location of the curve.

The problem with practice is that the wrong practice will produce the wrong results. To ensure you are practicing properly, you need to work with a mentor who is successful in the endeavor you are working to master.

Online Trading Academy has a clear advantage in that they have a patented, rule-based core strategy. They also have successful traders and investors teaching that strategy and working constantly with students, in-person and online, to help them master their skills.

It is funny that people believe that they can learn how to trade and become truly wealthy in the financial markets from simply reading a book or watching some videos found for free online. If that were true, there would be many more Warren Buffetts in the world!

Read the original article here - But I read how to trade in a book!

Learn to Trade Now

This content is intended to provide educational information only. This information should not be construed as individual or customized legal, tax, financial or investment services. As each individual's situation is unique, a qualified professional should be consulted before making legal, tax, financial and investment decisions. The educational information provided in this article does not comprise any course or a part of any course that may be used as an educational credit for any certification purpose and will not prepare any User to be accredited for any licenses in any industry and will not prepare any User to get a job. Reproduced by permission from OTAcademy.com click here for Terms of Use: https://www.otacademy.com/about/terms

Education feed

Editors’ Picks

EUR/USD nears 1.1100 ahead of the close

The EUR/USD pair is at daily lows after US and Chinese authorities confirmed phase one on a trade deal agreed. Some tariffs will be rolled back as China agreed on “massive purchases” of US goods, according to President Trump.

EUR/USD News

GBP/USD extends corrective decline to 1.3330 region

The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.

GBP/USD News

USD/JPY: Bulls gearing up for a move beyond 110.00 handle

USD/JPY added to the overnight strong gains amid US-China trade optimism. The UK election results further boosted the global risk sentiment on Friday. Investors now look forward to the US retail sales data for a fresh impetus.

USD/JPY News

Editors’ Picks

EUR/USD nears 1.1100 ahead of the close

The EUR/USD pair is at daily lows after US and Chinese authorities confirmed phase one on a trade deal agreed. Some tariffs will be rolled back as China agreed on “massive purchases” of US goods, according to President Trump.

EUR/USD News

GBP/USD extends corrective decline to 1.3330 region

The GBP/USD pair continues shedding part of its post-UK election’s gains, although at levels last seen several months ago. Hopes that PM Johnson will pass his Brexit deal through Parliament will keep the Sterling on the winning side.

GBP/USD News

USD/JPY: Bulls gearing up for a move beyond 110.00 handle

USD/JPY added to the overnight strong gains amid US-China trade optimism. The UK election results further boosted the global risk sentiment on Friday. Investors now look forward to the US retail sales data for a fresh impetus.

USD/JPY News

Financial Big Brother is coming, but Bitcoin will remain

Central banks move quickly looking to oversight all payments. Greece could impose sanctions if digital means are not used in at least 30% of payments. Once inside the crypto ecosystem, governments have little capacity for financial censorship.

Read more

Gold: Steadily climbs to session tops, upside seems limited

Gold extended the overnight rejection slide from 100-day SMA resistance and witnessed some follow-through selling during the Asian session on Friday.

Gold News

RECOMMENDED LESSONS

7 Ways to Avoid Forex Scams

The forex industry is recently seeing more and more scams. Here are 7 ways to avoid losing your money in such scams: Forex scams are becoming frequent. Michael Greenberg reports on luxurious expenses, including a submarine bought from the money taken from forex traders. Here’s another report of a forex fraud. So, how can we avoid falling in such forex scams?

What Are the 10 Fatal Mistakes Traders Make

Trading is exciting. Trading is hard. Trading is extremely hard. Some say that it takes more than 10,000 hours to master. Others believe that trading is the way to quick riches. They might be both wrong. What is important to know that no matter how experienced you are, mistakes will be part of the trading process.

Strategy

Money Management

Psychology