A Forex trading course can teach you everything you need to know to start trading in stocks and shares – whether you're looking to make long term investments in certain stocks and sell them later at a greater price, or whether you're looking to try your hand at 'day trading' and start making constant cash from simply choosing the right stocks. On a course you will learn how to use trading software, what websites to use, and how to go about getting started, but at the same time you will also learn a bit about how to pick and choose your shares, how you can go about predicted the income and direction of certain stocks and basically how to become better at what you do. It's important to recognize that this is still essentially gambling; as yet there is no 'sure thing' and no 'magic number' to help you get it right every time. As such trading in stocks and shares is a risk and should be treated as such. That said, there is certainly a science and even an art to doing this, so here we will look at how the stock market works and some of the things you might learn while trading.
When you buy a stock or share this is much like backing horse. Only rather than a horse, you're backing a business and the intention is that over a few hours or days the stocks you've bought will go up and that you can then sell these off at a higher price. That means you need to know which stocks are going to go up and which are going to go South and to pick and choose your purchases appropriably. But how do people make such a prediction?
Traders tend to fall into several camps here. For instance the most basic and simple way to predict the outcome of a stock is to be a 'fundamental analyst'. This means that you look at the basic financial health of the company – things like its growth potential and cash flow and use that to decide if it's healthy or ailing. Then there are technical analysts who look at the price and volume patterns of a stock and using techniques such as financial modeling. Finally there are quantitative analysts who look purely at the numbers surrounding a stock – how it has performed in the past for instance and the patterns of other similar shares in the industry.
Many however will use a combination of these methods along with a healthy dose of common sense and intuition. Essentially it comes down to being able to predict what's going to be popular soon over a short term and then investing in the right places. So if you are into fashion and you are the kind of person who's always wearing things that are just about to become popular, then you might have the same kinds of skills that would be useful in trading. You need to get a feel for what's going to be successful soon and what's going to be the next big thing and then buy in that direction. The best way to get this feel is just to read as much information surrounding the industry and the stock as possible, as well as general information such as news and gossip columns.