So how long does it take to learn
how to trade stocks?
Some claim it only takes a few
weeks. Others say it takes months,
and some people say it takes
years.
So, who's right?
How long does it really take to
learn how to trade stocks?
That's what we're going to talk
about in this video.
So how long does it take to learn
how to trade stocks?
Well, I'm going to start this video
with - it depends.
But I promise that I'll give you a
very definite answer of how long
it really takes to learn how to
trade.
So here's why I say it depends.
There are simple ways to trade
and there are more complicated ways
to trade.
In a nutshell, it depends on three
factors.
Number one, the instrument
you want to trade, for example,
stocks, options, futures
or forex.
Number two, the analysis method
that you want to use, which could be
fundamental or technical analysis.
And number three, the timeframe
you want to trade, whether you want
to day trade or swing
trade.
So, let's talk about each
of these in detail.
Number one, what do
you want to trade?
Well, the easiest instrument
to trade are stocks and here's
why.
Stocks are super easy to understand.
See if you buy a stock for a $100
and the price goes up to
$101, you make $1.
And if you're trading 100 shares,
you would make $100.
Easy enough, right?
Now when trading options,
you need to understand strike
prices, expiration dates,
option premiums, the difference
between calls and puts, the
difference between buying and
selling options, and also the
Greeks like Delta, Gamma,
Theta, and that's just the
tip of the iceberg.
Now, as you can see, trading
options, it's much more complex
and therefore also more complicated
than trading stocks.
And that's why it will take longer
to learn how to trade options
than if you would just trade stocks.
Making sense thus far?
Okay.
By the way, if this is making sense
thus far hit like.
Okay, now let's talk about futures.
When trading futures you need to
learn about the expiration dates
as well as the so-called
"tick values." As an example,
when trading the e-mini S&P
the minimum fluctuation is
a quarter.
So the e-mini S&P would trade at
3000.00,
3000.25, 3000.50, 3000.75, 3001.00. Now each
of these ticks is worth
$12.50. So if the e-mini S&P
moves from 3000.25
to 3000.50,
you would make
$12.50 per contract.
Now, to make matters worse, each
futures contracts takes differently
and has a different value.
As an example, the 30-year
bonds tick in 30 seconds
and each tick is worth
$31.25. Now, as you can see, futures
trading is much more complex
and complicated than trading stocks,
and therefore it would take much
longer to learn how to trade
futures than options.
But you see for this video let's
say you decide to trade stocks
to make things easy, because
this would already save you
a bunch of time.
Now, after you decide what
to trade, you need to determine
how you will pick the right stock.
So that's criteria number two,
what analysis method do you
want to use?
Now, I did another video in which I
talked about the difference between
fundamental and technical analysis.
In a nutshell, fundamental
analysis is difficult,
and it's complicated.
If you want to learn how to pick
stocks using fundamental analysis,
it would take months,
maybe even years.
Now, on the other hand, there's
technical analysis.
And in the previous video I talked
about the difference between chart
patterns and indicators.
See if you want to learn how to pick
stocks using chart patterns, then
obviously you need to learn
all the chart patterns, which
takes time.
And then you need to practice to
recognize these chart patterns, and
this can take weeks.
On the other hand, when using
technical indicators, you just
need to know what indicator to use
because then it's black
and white.
As an example, if you choose to pick
stocks using a moving average,
you only need to check whether the
stock is above the moving average or
not. The tricky part
is to find the right indicator
at the right settings for the
indicators.
See, if you want to develop your own
system it can take months and years
of development and back testing
to find the right combination.
See, I personally spent years
testing and refining my
own trading strategy, and you might
know it it's called The PowerX
Strategy.
Now the good news, you don't
have to do this because you can
shortcut your learning curve by
simply duplicating what
other successful traders do.
This will save you many
months and years.
As an example, if you would like to
know the indicators that I
personally use and what
settings, then simply go to
mytradingroutine.com where I
have a video for you that shows
you everything in detail.
Actually, I'll link to the video in
the description so that you can
easily go there.
Okay, so let's review.
If you decide to trade stocks and
you decide to use technical
indicators, you can shorten your
learning curve from years and months
to a matter of days.
Before we move on to the next step,
let me ask you, is this helpful thus
far?
If it is, do me a favor and click on
like because this way I can see
which videos you like and I can make
more of these videos.
Now, the next criteria,
number three, how do you want to
trade? Do you want to day trade
or do you want to swing trade?
You see, there's one thing you need
to do regardless of whether you're
trading stocks or options or
whether you're using fundamental or
technical analysis.
You have to test your
trading plan.
You absolutely must
test your trading strategy on
a simulator to make sure that
it actually works.
See, I did a video "The Best Trading
Simulator" and I'll link to it
in the description, you should
definitely watch it.
Now, in that video,
I explain why you should test
your trading strategy over at least
40 trades.
Anything less and you wouldn't have
statistically relevant results.
So, now the question is,
how long will it take you
to test your trading strategy?
Well, if you're day trading
you might get 2 trading
opportunities per day.
So in order to place 40
trades on a simulator, it
would take you 20 trading days,
which is approximately a month.
Now, if you're swing trading and you
only get 3 trading opportunities
per week, then it would take you
approximately 13 weeks,
which is a little over 3 months.
Now, as you can see, testing
your trading idea and placing trades
on the simulator is the most
time consuming activity.
And you can not shortcut
it. Those who do
are usually the ones losing money
in the markets.
And those who take the time to
thouroughly test their trading
ideas and practice it, those
are the ones that are making money
with trading.
Now before we talk about how exactly
you can become a successful trader,
let me ask you, is this helpful thus
far? If so, if it is, do
me a favor and click on like.
Because this way I can see which
videos you like the best and I can
make more of these videos.
So, the question is, is trading
hard to learn?
Well, if you want to trade options
or futures and use fundamental
analysis, then yes,
it's difficult and trading
will be hard to learn.
However, when you trade stocks
and use indicators you can learn
how to trade in a matter of days.
But think about it like riding a
bicycle, it's not difficult
to learn how to ride a bicycle.
All you need to do is get on the
bike and start pedaling, right?
But it takes practice before
you master it.
See, same in training.
Learning how to trade is relatively
easy, but you need practice
to master it, and that
is the reason why most people
fail.
They simply don't take the time to
practice the trading strategy,
make mistakes, and then learn from
them. Most people invest
in a trading strategy or today
and they want to see results
tomorrow.
It simply doesn't work
this way.
See, take the time to practice
and you will significantly increase
the odds of making money with
trading.
So, how do you become
a successful trader in the stock
market?
Here's how to start trading stocks
in five steps.
Step number one, decide
what to trade.
Step number two, get a
trading strategy.
Step number three, practice
on a simulator.
Step number four, open an account
with a broker. And step number five,
start small,
grow big.
You see, I made a video for you in
which I go through these steps in
detail and I'll link to it right
here, somewhere on this page,
and also in the description.
Now, if you found this video
helpful, click on like and make sure
to subscribe to my channel and
hit the little notification bell
because this way you get a
notification whenever I release
a new video.
Now here's the next step.
Watch the video on how to start
trading stocks in five steps.
I promise you're going to love it.
All right. I'll see you there.