Learn trading from scratch to become a professional
Trading is the process of buying and selling financial assets in financial markets with the aim of making a profit and making money.
Trading is considered one of the most important methods of investing in financial markets and provides excellent investment opportunities for traders to achieve financial returns and increase capital.
Trading is not gambling, it is a skill that can be learned through patience, study and practice
In this article, we will learn how to learn trading from scratch to professionalism for free.
In this article, we will also cover the basic concepts of trading, the basic steps for success in trading, and everything related to trading in a brief and simplified manner.
What is trading?
The importance of trading in financial markets
Types of trading
Types of trading based on trading duration
|In which financial assets are bought and sold during the same day, so that all deals are closed before the day ends [1. Source] .
|Short term trading
|In which financial assets are bought and sold over a few days [2. Source] .
|Long term trading
|In which financial assets are bought and sold over a period of months or years [3. Source] .
Types of trading based on the type of assets traded
|1. Stock trading
|It is a type of trading in which many shares of different companies around the world are bought and sold [1. Source] .
|2. Currency trading
|It is a type of trading in which currency pairs such as EUR/USD are bought and sold [2. Source] .
|3. Futures trading
|It is a type of trading in which futures contracts are bought and sold, which are contracts that oblige the buyer or seller to buy or sell an asset at a specific price on a specific date in the future [3. Source] .
|4. Options trading
|It is a type of trading in which options are bought and sold, which are contracts that give the buyer the right, but not the obligation, to buy or sell an asset at a specific price on a specific date in the future [4. Source] .
|5. Digital currencies
|It is a type of trading in which digital or encrypted currencies are bought and sold, such as Bitcoin, Ethereum, and others [5. Source] .
|6. Commodity trading
|It is a type of trading in which commodities such as oil, gold, corn, wheat and other commodities are bought and sold [5. Source] .
Other types of trading
|1. Automated trading
|It is a type of trading in which trades are executed automatically by a computer program or robots without the input of human parties [1. Source] .
|2. Social trading
|It is a type of trading that depends on traders sharing information and ideas with each other collectively by copy trading, and this type does not require great knowledge in trading [2. Source] .
|3. Micro trading
|It is a type of trading in which small amounts of assets are traded, making it more accessible to traders with limited capital [3. Source] .
Learning the different types of trading can help you determine the right strategy for you and achieve your trading goals.
Basic concepts of trading
1. The concept of the financial market
The financial market is the place where financial assets such as stocks, bonds, and currencies are traded. The financial market is considered one of the most important markets in the world, where many financial and investment operations are carried out.
The financial market is analyzed using technical analysis and fundamental analysis to determine price trends and make the right investment decisions.
As a trader in the financial market, you must be familiar with the basic concepts of the market and have the knowledge necessary to make the appropriate decisions at the right time.
2. The concept of financial assets
Financial assets refer to financial instruments that can be bought or sold in financial markets.
Financial assets include stocks, bonds, currencies, commodities, and cryptocurrencies.
Owning financial assets is an important part of trading strategies, as investors can buy financial assets at a low price and sell them at a higher price to achieve a profit. Traders must also understand the different types of financial assets, how to evaluate them, and choose the appropriate assets for their trading strategy.
3. The concept of liquidity
The concept of liquidity refers to the ability of financial assets to be converted into cash quickly and easily. Liquidity is considered an important factor in trading operations, as traders prefer financial assets that enjoy high liquidity to ensure their ability to buy and sell easily. Financial assets can be classified according to their level of liquidity. Assets with high liquidity are easy to trade and convert into cash quickly. In contrast, assets with low liquidity are difficult to trade and convert to cash. Traders must take the level of liquidity into account when making trading decisions and choosing financial assets. appropriate to their needs and goals.
Important terms in trading
|A trader is a person who buys and sells financial assets in the market [1. Source] .
|It is a standard indicator used in trading to measure the change in price. It is calculated by dividing the difference between the current closing price and the previous closing price by the previous closing price [2. Source] .
|It is a financial instrument that allows traders to trade assets with a value greater than the capital they own. Financial leverage is calculated by dividing the value of the asset by the amount of capital that the trader invests. Learn more .
|It is an open trading position, whether buy or sell. The position is closed when the assets that were bought are sold or the assets that were sold are bought.
|A lot is a unit of measurement used to measure the amount of assets being traded, a lot is usually defined as 1000 units of an asset [4. Source] .
|The spread is the difference between the selling price and the buying price and is typically used to calculate trader fees.
|A stop loss order is an order that is automatically sold if the price falls to a certain level previously set by the trader and is used to reduce potential losses [5. Source] .
|A take profit order is an order to exit a trade automatically if profits reach a certain level that was previously set by the trader and is used to make profit [6. Source] .
|An asset is anything that has value and can be traded on the market, such as stocks, currencies, commodities, cryptocurrencies, futures and CFDs [7. Source]
|Demand and supply
|Demand and supply are the forces that determine the price, when the demand for an asset is higher than the supply, the price goes up, when the supply is higher than the demand, the price goes down [8. Source]
Basic steps of trading
1. Understand technical analysis
Understanding technical analysis is essential for success in trading. Technical analysis is used to analyze prices and patterns that appear on the charts of financial assets. Technical analysis relies on the use of financial tools and indicators to determine market trends and predict future price movement.
Technical analysis can be applied in many financial markets, such as the stock market, the currency market, the commodity market, and the digital currency market. Technical analysis helps traders make informed investment decisions and increase profit opportunities in the financial markets.
Traders must learn the basics and basic concepts of technical analysis and use them correctly to achieve success in trading.
The best and most accurate technical indicators
|1. Relative Strength Index (RSI)
|It is an oscillator indicator that measures the speed and strength of momentum in the market. The RSI ranges between 0 and 100. Readings above 70 indicate that the market is overvalued, while below 30 indicate that the market is low. It can be used to determine entry and exit points for trades [1. Source] .
|2. Moving Average (MA) indicator
|It is a simple indicator that measures the average of historical price values for a specific period of time that can be used to determine the market direction [2. Source] .
|It is an oscillator indicator that measures the volatility of price movement. Oscillators can be used to identify potential buy and sell points [3. Source] .
|4. Momentum indicator
|It is an oscillator indicator that measures the direction of price movement. It ranges between -1 and 1. Readings above 0 indicate that the price trend is upward, while below 0 indicate that the price trend is downward. It is used to determine buy and sell points [4. Source] .
|5. Trend indicator
|It is an indicator that measures the strength of a trend in the market that can be used to determine the trend in the market and make trading decisions based on it [5. Source] .
In addition to these technical indicators, there are many other indicators that can be used in technical analysis, and it is important to conduct sufficient research before using any indicator to understand how it works, its analyses, trends, and readings, and to try that on a demo account first.
2. Choose a trading strategy
After you understand technical analysis and know the different financial assets, the next step in learning trading is choosing the appropriate trading strategy, and the strategy must be compatible with your goals and level of trading experience.
You can use tables and lists to evaluate and compare different strategies, and common strategies may include the impulse strategy, the trend strategy, and the bounce strategy.
Analyze and compare each strategy to determine what is best for you, and be sure to try the chosen strategy on a demo account before you start using it on a real account.
3. Open a trading account
After understanding technical analysis and choosing a trading strategy, the trader must open a trading account to begin buying and selling operations. The trader can open a trading account in banks, financial brokerage companies, or various platforms, and the trader must submit some documents and personal information to open and authenticate the account.
After opening the account, the trader can begin implementing his strategy and monitoring the financial markets to make appropriate decisions in buying and selling operations. The trader must learn how to use the trading platform and understand the orders and indicators available in it.
The trader must also follow economic news and political and economic events that may affect the financial markets. By analyzing this news and following events, the trader can make the right decisions and benefit from the available trading opportunities.
Professionalism in trading
1. Develop a trading plan
After understanding the basics of trading and gaining the necessary experience, the trader must develop a trading plan before starting any trading process.
The trading plan is considered a crucial step to achieving success in the financial markets, and the plan must include a specific trading strategy and clear and specific goals. The plan must also contain identifying risks and managing them well. The trader can also include economic news analysis in his plan to determine the optimal trading opportunities, and it must The trader has a flexible and adjustable plan depending on market conditions, and use the following table to organize your trading plan:
|Determine the method used in trading
|Determine short, medium and long-term trading goals
|Determine how to manage risks and determine the risk ratio
|Economic news analysis
|Determine the impact of economic news on financial markets
Use the following lists to determine the next steps in your trading plan:
- Determine the trading strategy that is right for you.
- Determine your trading goals.
- Determine how to manage risks and determine the risk ratio.
- Analyze economic news and determine its impact on financial markets.
- Execute your trading plan, monitor the results and adjust when needed.
2. Risk management
Risk management is the process of identifying, evaluating, and addressing potential risks that you may encounter while trading.
Risk management aims to reduce potential losses and increase profitable opportunities. This can be achieved by taking actions such as setting loss limits, using stop losses, and diversifying the portfolio. The trader must also be aware of the level of risk that he can bear and determine the size of trades accordingly.
A trader must have a clear risk management plan and adhere to it strictly to achieve sustainable trading success.
3. Analysis of economic news
Analysis of economic news is one of the basic tools used by professional traders to make their decisions in the financial market.
This analysis includes reviewing and analyzing important economic news and events and estimating their impact on the financial markets. Tables and lists can be used to organize information related to important economic news. This analysis also requires following up on financial and economic news regularly and reviewing economic reports and analyzes from reliable sources.
Traders should be aware of key economic indicators and how to interpret and use them to make the right trading decisions.
Common trading strategies
There are many common trading strategies that can be used. Some of the most common trading strategies include:
1. Buy and hold strategy
It is a strategy that involves purchasing financial assets and keeping them for a long period of time, and is used in long-term investment. The success of this strategy depends on choosing the appropriate financial assets and keeping them for a sufficient period to achieve a profit.
2. Day trading strategy
It is a strategy that involves conducting short-term trades, where traders buy and sell financial assets on the same day. The success of this strategy depends on the ability to identify small trends in prices.
3. Swing trading strategy
It is a strategy that involves conducting medium-term trades, where traders buy and sell financial assets within days or weeks. The success of this strategy depends on the ability to identify medium-term trends.
4. Seasonal trading strategy
It is a strategy that involves trading based on seasonal trends in prices, at specific times or seasons, so that there is a large demand for the item or asset in a specific seasonal period. For example, traders may trade in agricultural commodities during the harvest season, for example.
5. Indicator-based trading strategy
It is a strategy that relies on using technical and fundamental indicators to identify profitable trading opportunities, and the success of this strategy depends on the ability to understand and interpret technical indicators.
Can you get rich from trading?
Yes, you can get rich from trading, but it is not easy. Successful trading requires a lot of study, practice and patience. It is also important to understand that trading involves risks. There are many traders who have become rich through trading, but they represent a small minority and most traders. They lose money at first.
How do you trade if you don't have money?
If you do not have a lot of money and want to trade, there are some methods available to you so that you can start with a demo trading account, which means that you will learn to trade from scratch to become a professional without risking your real money.
You can do this for free through many trading brokers in the market. In addition, you can use leverage to trade if you do not have a lot of money. Leverage allows you to trade with larger amounts than you own thanks to its ability to increase the buying power of your assets. However, you should be fully aware that using leverage increases the risk of loss at the same time.
How much time do you need to learn trading?
How long it takes to learn trading depends on several factors, including your current level of knowledge about the financial markets and the extent of your commitment to learning. Usually, you should be willing to spend at least a few months in the trading process to learn the basics, but if you want to learn all aspects of trading and become professional, It may take many years, and you need patience and dedication to avoid stress and stress and achieve success.
Is learning trading difficult or easy?
Learning to trade is not difficult in general, but it does require some effort and commitment, and many resources are available for you to learn trading, such as books, articles, and training courses. However, you should always remember that trading involves risks, and you can lose money if you do not learn how to trade. Manage risks properly. Before you start trading, take advantage of all available resources to improve your skills and understanding of trading processes.
Learning to trade is a long and thorny journey, but at the same time it is an enjoyable and rewarding journey. Through continued learning, training and good patience, an individual can achieve his financial goals and build his financial future.
Before starting the trading journey, a person must remember that trading is not just a game, but rather a real investment that requires careful study and analysis. Therefore, the individual must be careful and should not risk his money unless he is prepared for it and has sufficient knowledge.
There is an important point that the individual must be reminded of, which is that trading is not only a means of achieving financial profits, but rather an opportunity to learn and acquire new skills. Through trading, the individual can learn more about the financial market and the world economy in general.
Finally, a person must dream about his financial future and goals. Through learning, training, and good patience, an individual can achieve all his goals and achieve success in the field of trading.