Learn Charting With These Free Tools & Software
Charting or Technical Analysis (TA) within the stockmarket is now ubiquitous but where can you go to learn about it? You can go on expensive training courses which often don't deliver or you can see what's available on the web for free.
Charting or Technical Analysis?
What's the difference between the two? Basically charting is a more simple way of interpreting chart patterns whereas Technical Analysis often involves using a computer to number crunch all sorts of data producing many different indicators.
Watch out because it’s very easy to fall into the trap of thinking that high powered analysis is good analysis. Maybe this was the case 20 years ago when few people had access to personal computers but now anyone with £500 can have immense computer and analytical power at their fingertips eroding many of the edges.
This is why we suggest that you concentrate far more on simple charting analysis rather than the more complex Technical Analysis. In fact, many of the great traders of today and yesterday report that the simple use of charts produces the best results.
Free Charting /Price Websites
Free Learning Tools
Paper Trading Or Real Time Trading
For those new to trading realise that it’s as much about psychology as buying and selling at the right price.
For example -
- If you have 5 losses in a row how are you going to feel about placing the 6th trade
- Conversely, if you have 5 winning trades in a row the placing the 6th trade will be a completely different situation from a mental standpoint
So in or order to truly master the game you’ll have to master your emotions. This is why we feel strongly that paper trading (where no money is at risk) is a waste of time because psychology doesn’t come into play – losing £10,000 in imaginary money in never a problem.
It’s far better to always trade with real money even when just starting out. But beginning traders are apt to make a lot of mistakes and hence lose money. The trick therefore is to trade with very small amounts of money, perhaps opening an account with just £100 - £200.
Some of the spread betting forms, notably Finspreads allow new clients to trade the markets with very small stakes, for example it’s possible to buy or sell the FTSE 100 index at 10p a point – if the market moves against you by 100 points the loss is only £10. Trading with real money is also far more fun when starting out.
Incidentally, making lots of mistakes and losing money when first starting out is one of the best things that can happen because you’ll learn far more from losses than you will from profits. As we said though the trick is to lose a small amount of money.
Good luck with your trading and charting lessons!
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