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Trading Research

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When it comes to the world of trading, the intricacies, complexities and volatility of financial markets are facets that must be at the forefront of every trader’s mind in order to achieve marketplace success.

The financial markets are vast, with a variety of market types and numerous market sectors. To add to this is the continual flux of financial markets where the market itself rises and falls in response to influences that subsequently affect the market value of associated financial instruments.

For the novice trader – and even the more adept trader – trying to navigate the complexities of the financial markets, let alone trying to make money from your trading endeavours, can seem like mission impossible. For this, a simple solution exists that can help transform any trader, regardless of their level of trading expertise, from reckless risk-takers making uninformed trades, to savvy investors geared for success. That solution is trading research. Let’s explore.

The value of trading research

Your ability to make money through trading hinges on your ability to make the right speculations, predictions and decisions at the right time. To do this though, you would need to develop a working understanding of the intricacies of trading financial markets to equip you with the knowledge and skills to trade successfully. Which can only be achieved through extensive trading research and a lot of practice. So let’s uncover some of the details of trading research so that you can begin your journey to financial success through trading.

What is trading research?

Trading research refers to the collection of market data and the process of analysing and using that data to inform your decisions, strategies and opinions when it comes to trading the markets. Trading research can be carried out in a number of ways, but it is commonly separated into two main categories of analysis: fundamental and technical analysis.

Technical analysis

Technical analysis involves utilising past and present trading activity trends and price changes of a financial instrument to extrapolate the probability of future price movements of a security. With this method, traders are concerned with the overall financial market and thus will consider factors like price volume and supply and demand to determine future price movements.

Fundamental analysis

With fundamental analysis, this strategy involves an evaluation of a security’s value based on data related to an organisation such as its sales, assets, market share, competitors and financial records. With this data, traders are then able to determine a security’s intrinsic value. Depending on whether the security is undervalued, overvalued or priced correctly, a trader can then evaluate its potential as a profitable investment.

Technical and fundamental analysis both play a critical role in helping you to develop an understanding of the markets so that you can identify opportunities and ultimately make smarter trading decisions. So, use these research tools in conjunction to reap the greatest rewards when trading.

3 tips to effective trading research

Effective research is essential to attaining the relevant market data to help you make the best trading decisions. So, here are 3 tips to help you ensure you’re researching the right way, to get the best trading results.

1. Begin with the basics

To become a successful trader, you need to be well-versed in the fundamentals of how the market operates. So start with the basics like familiarising yourself with key terms and learning how to read trends and identify patterns, and then work on identifying your trading style. Having a handle of the basics can help inform not only how and what you need to research but also help to inform the trading strategy you will ultimately use.

2. Practice trading

Once you have the market knowledge you require, the next step is to practice what you have learnt to prepare you to trade on the actual market. For this, you need a demo trading platform that will give you access to real-world trading scenarios, like the MetaTrader 5 demo platform offered by QuickTrade. With the MetaTrader 5 platform, familiarise yourself with the movements of the financial markets without having to spend any of your money until you feel confident to do so.

3. Make use of free resources

Thanks to the proliferation of the internet, there are numerous free resources at your disposal to help you develop your trading skills and profit through trading. QuickTrade is such a resource, offering clients free trading signals, free online Zoom training on how to effectively use the MetaTrader 5 platform, and a number of other trading resources. Click here to find out more about how QuickTrade can help you become a better trader.

With effective trading research and an expert demo trading platform to practice everything you have learnt, you’re well on your way to becoming an expert trader. So visit QuickTrade to find the resources you need to become the best.

Contact us to start trading today.