Hi Dave,

I have been following your content for a while and am an active Real Vision subscriber. I am wondering if you could point me in the right direction to gain trading education (as a novice) from ground zero to learn best practices. I am weary of taking a course if you could advise a better method. Do you have a good education program in mind.

All the best,

Scott C. – Calgary Canada

Scott,

Thanks for the question.

There can be little doubt in my mind that the whole ‘trading education/trading educator’ business is largely a joke.

The fact is, no trading approach can be boiled down into a set of DVD’s, weekend seminar or the like. Add to that the fact that the majority of ‘trading educators’ are largely unqualified.

Trading is a journey and takes lots of time and effort. Sure, you need a starting point and that usually involves getting some framework for understanding how trades are identified and executed. The challenge is being able to do/learn that in real-time each day, each week etc etc.

While I have been in the business for 20+ years, I still learn a great deal from some of the research I take in each day. My Bloomberg Terminal is a great example. Yes, there is a lot of information on it, but in time you can find the key pieces of information and insights that really help you build your basis for taking trades. I also strongly suggest that you not get too myopic in terms of your analysis. Technical analysis is a robust approach, but I prefer combining my technical insights with data from Bloomberg (lots of options data) as well as quantitative research from the team at Nautilus Capital.

You asked me directly and will give you my answer. When looking to outside sources, make sure they can string together the bullet points below. If not, don't waste your time. 

  • How are they interpreting the market

  • What key price levels or asset class movements will trigger a possible set-up

  • A daily review of what was stated in the previous days and how it builds on where we are now.

  • Contrary to popular belief, there is no ‘Trade of The Day’. For the true trading professional there is an ongoing narrative within the major asset classes and a handful of FX pairs/crosses.

  • Price forecasts with clear levels where trades are proven invalid or at levels where booking profits makes sense.

Staying with that narrative day in and day out allows for deeper insights and allows me to anticipate market movements versus reacting to them.

So, in some sense, there is trading education, but only the form of a virtual apprenticeship. Aspiring carpenters don’t learn how to be a master carpenter at a weekend course. However, they can learn it from hanging out in the workshop with a professional for years. Trading is no different.

Hope that helps.

Dave

Any reviews, news, research, analysis, prices or other information contained in this article is provided as general market commentary, does not constitute investment advice and may undergo changes from time to time. Trading the Financial and Currency Markets on margin carries a high level of risk and may not be suitable for all investors. The high degree of leverage can work against you as well as to your favor. Before entering trading Financial and Currency Markets, you should carefully consider your investment objectives, level of experience and risk appetite. There is a possibility that you could sustain a loss of some or more of your initial investment and therefore you should not invest money which you cannot afford to lose. You should be aware of all the risks associated with Financial and Currency Markets trading, and in case you have any doubt, rather seek advice from an independent financial advisor. Scandinavian Capital Markets AB, its owners, employees, agents or affiliates do not give investment advice, therefore Scandinavian Capital Markets AB assumes no liability for any loss or damage, including without limitation to, any loss of profit, which may be suffered directly or indirectly from use of or reliance on such information. Scandinavian Capital Markets AB strongly encourages consultation with a licensed representative or financial advisor regarding any particular investment or use of any investment strategy.

Education feed

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Editors’ Picks

EUR/USD drops below 1.11 amid upbeat US data, trade concerns

EUR/USD is trading below 1.11 after robust US housing figures and solid consumer sentiment figures were published. Earlier, the common currency suffered from the concerns of new US tariffs on the EU.

EUR/USD News

GBP/USD down 100 pips after UK retail sales badly disappoint, amid USD strength

GBP/USD has plunged below 1.3050 after UK retail sales badly disappointed with a fall of 0.6% in December, on top of downward revisions. Odds of a BOE cut have risen.

GBP/USD News

USD/JPY: Losing bullish momentum but retaining gains

Chinese encouraging data kept markets in risk-on mode at the beginning of the day. The US January Michigan Consumer Sentiment Index is seen at 99.3, matching December figure. USD/JPY holding at the upper end of its weekly range could correct lower.

USD/JPY News

Crypto market hyperspace mode On

The secondary actors of the crypto-sphere awaken and rally hard. Leading coins battle with greater resistance at the gates of a full bullish market. The only risk is an over-shoot, but that sentiment remains neutral.

Read more

Gold looks to close week flat below $1560

The XAU/USD pair climbed to a fresh daily high of $1560 in the early trading hours of the American session but struggled to preserve its momentum.

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