Articles by HungTrading - Free A-Z Trading Education Blog

[HungTrading]

Hello everyone,

Welcome to HungTrading - the A-Z trading education blog!

We believe that knowledge is power and success in the world of online trading comes from continuous learning and honing of skills. Whether you’re a beginner or an experienced trader, our blog aims to provide you with valuable knowledge, from basic to advanced, to help you navigate the complex and ever-changing landscape of financial markets.

In this post, we will share our educational articles about various topics, including:

• Forex Beginner Strategy
• Forex Fundamental Analysis
• Forex Trading
• Money Management
• News Trading
• Social Trading
• Technical Analysis
• Trading Basics
• Trading Business
• Trading Psychology
• Trading Strategies

Happy Trading!

 

[HungTrading]

★ How to start learning to trade as a complete beginner​

Starting as a newbie trader can be overwhelming. You may not know where to start learning and how to progress.

To help you navigate this new endeavor, here is our suggested path:

1. Learn the Trading Basics​

Begin by dedicating time to educate yourself about the basics of trading. Familiarize yourself with different financial instruments, such as stocks, indices, forex, or cryptocurrencies, and understand how markets function. Learn about trading terminology and how to use trading platforms.

2. Learn Technical and Fundamental Analysis​

Technical analysis involves studying charts, indicators, and patterns to predict future price movements, while fundamental analysis involves assessing economic data, news events, and company financials to evaluate the value of an asset. Gain a basic understanding of both approaches and incorporate them into your trading strategy.

3. Learn Risk & Psychology Management:​

Risk management is crucial to long-term trading success. That's why you have to implement strategies to protect your capital and limit potential losses. Set stop-loss orders to automatically close a position if it reaches a predefined price. Consider using position sizing techniques to ensure that each trade's potential loss is within your acceptable risk parameters.

Meanwhile, emotions can significantly impact your trading decisions. Fear and greed are common emotions that can lead to impulsive actions. To overcome them, you have to understand them.

4. Select a Reliable Broker​

Research and choose a reputable online broker that suits your trading needs. Look for brokers that offer a user-friendly platform, competitive fees, a wide range of financial instruments, and reliable customer support. Ensure that the broker is regulated by a recognized financial authority to safeguard your investments.

5. Create a Trading Strategy​

No trader can be successful without a trading strategy. Use what you have learnt to create one for you. Another way is finding an available strategy from the internet and adjusting it based on your needs.

One of the important steps while building a trading strategy is choosing your trading style. There are various trading styles to consider, such as day trading, swing trading, or long-term investing. Each style requires different time commitments, strategies, and risk tolerance. Assess your personality, available time, and preferences to identify a trading style that aligns with your goals and lifestyle.

Consider using a demo trading account provided by your broker. These accounts allow you to practice trading without risking real money. Use this opportunity to familiarize yourself with the trading platform, test your strategy, and gain confidence in executing trades.

6. Develop a Trading Plan​

A trading plan serves as your roadmap in the markets. It outlines your goals, trading strategies, risk management techniques, and entry and exit criteria. A well-defined plan helps you make objective decisions and reduces impulsive actions based on emotions. Stick to your plan and make adjustments as needed based on your experience and market conditions.

Don't forget to define your trading goals and expectations. Are you looking for short-term gains or long-term investments? Determine your risk tolerance level and the amount of capital you are willing to invest. It's crucial to set realistic expectations and understand that trading involves risks. Start with a small amount of money you can afford to lose while you learn and gain experience.

7. Learn from Experience and Progress​

Trading is a continuous learning process. Keep a trading journal to track your trades, record your thoughts, and analyze your performance. Learn from both successful and unsuccessful trades, identify patterns, and refine your strategies over time. Stay updated with market news and developments to adapt to changing market conditions.

To summarize:

1. Learn the Trading Basics
2. Learn Technical and Fundamental Analysis
3. Learn Risk & Psychology Management:
4. Select a Reliable Broker
5. Create a Trading Strategy
6. Develop a Trading Plan
7. Learn from Experience and Progress

Read more at HungTrading - the A-Z trading education blog!​

 

[HungTrading]

★ What should beginner traders trade?​

As a beginner trader, it's important to start with assets easy to understand and widely traded. Some popular options are:

• Stocks: Trading stocks means buying and selling shares of publicly traded companies. It's a popular choice for beginners because there's a lot of information available and you can choose from various industries.
• Exchange-Traded Funds (ETFs): ETFs are investment funds that trade like stocks. They hold a mix of assets like stocks, bonds, or commodities, providing diversification. ETFs can give you exposure to specific sectors or themes, making them a good choice for beginners looking for broader market involvement.
• Forex (Foreign Exchange): Forex trading involves buying and selling currencies from around the world. The forex market operates 24 hours a day, offering many trading opportunities. However, it can be complex, so take time to understand leverage, economic indicators, and geopolitical events.

When I started trading, I chose to trade indices. It's because:​

1. Diversification: Indices are made up of multiple stocks from different industries. By trading indices, I can achieve diversification in a single trade. This means that if one stock doesn't perform well, it may not have a significant impact on the overall index, reducing my risk.
2. Easy entry and exit: Major indices, like the S&P 500 or Dow Jones Industrial Average, have a high level of activity, which means it's easier to buy or sell positions at the desired prices. This liquidity ensures smoother trading without experiencing major price swings.
3. Accessible information: Indices are widely followed and reported on by financial news outlets, providing me with abundant information and analysis. I can stay up to date with market trends, news, and economic indicators, which can help me make more informed trading decisions.
4. Positive swaps for LONG positions: Some brokers offer positive swaps for holding LONG indices positions overnight. It's highly advantageous when I apply the buy-and-hold strategy, because I can make profits from both up trends and positive swaps. Remember, the stock market generally goes up over the long term!

That said, trading indices has some downsides:

• Lower profit potential: While indices can offer broad market exposure, the overall gains from trading indices may be more modest compared to successful trades in individual stocks. The potential for significant profits can be higher when trading well-researched individual stocks that outperform the market.
• Overnight risk: Market-moving events or news that occur outside regular trading hours can lead to significant price gaps when the market opens, which can impact your trades and potentially result in losses.

Read more at HungTrading - the A-Z trading education blog!​