Making your money work for you is important. Whether you’re one of the 31% of Australians who hold shares or you’re just looking for a smarter way to make your money grow at a time of record low-interest rates – many people could benefit from boosting their knowledge of the markets. But having ambition is one thing, how do you actually learn more? This post looks at where and how to get the knowledge you need to succeed…
Read some of the ‘classics’
There’s a wealth of written material that helps to explain what goes on in the world of trading and investing. Don’t waste your time reading just anything though – focus on some of the classics that the experts know and love. IG has asked its analysts and seasoned employees to pinpoint their top ten books – and each serves as a great recommendation. Books picked out include Michael Lewis’ account of the 2007/08 financial crisis, a near-100-year-old classic from Edwin Lefèvre and Technical Analysis of the Financial Markets, a veritable trading bible.
Understand what’s going on in the world
The best traders have a thorough understanding of the forces influencing the world around them. From the simmering tensions between Saudi Arabia, Russia and the US and what that has meant for the price of oil through to Brexit or legislation launched to reign in the influence of cryptocurrencies – the news matters a lot to you and your investments. It’s also more important than ever, in a world beset by fake news, to find sources that you can trust. Turn to those so that you can make informed decisions based on facts. The Australian Investors Association has curated this shortlist of sites if you’re struggling to know where to turn.
Speak to other traders
While you don’t want to be completely swayed by other people, it is healthy to be able to share views with like-minded traders. Search out forums where you can find other people in the same situation as you. It’ll also be reassuring to see that you’re not the only one wrestling with the challenges and dilemmas you’re facing.
Learn from experience
We all make mistakes in life – we’re all only human after all. Yet each mistake we make should merely be seen as an opportunity to learn. Indeed, it’s better to make a mistake and understand how and why you made it then to get something right and have no idea. You might be forgiven for thinking that trading is an expensive field in which to ‘learn from mistakes’, but there are ways to test theories and practices without risking funds. Sign up to a demo account and you’ll be able to see whether or not your tactics are going to work, learning from experience in a way that doesn’t leave you out of pocket. You might also come across things that cause you to go back to the drawing board for further targeted learning.
Use online learning resources
The beauty of the internet is that none of us need to leave our homes in order to further our skillset. There is a broad range of online learning materials that you can access from the comfort of your living room. Courses, webinars and seminars – many of them free – are a great way to brush up on the things you don’t already know. Find the right resources and you’ll be sure to reap the rewards.
With the right reading materials, trusted news sources, a vibrant online community, the chance to learn from experience and online learning materials, there’s plenty at your disposal if you want to boost your trading prowess.
Carolyn Coley is a blockchain reporter. She joined Smartereum after graduating from UC Berkeley in 2018.
