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You Are Here: Home > Stockmarket & Trading > Spread Betting Section > How to learn to trade
How To Learn To Trade Correctly
If you're serious about learning to trade then you have a couple of options –
  • Teach yourself, or
  • Learn from someone who has a proven track record of success in the markets

Teaching yourself is all very well but where do you start and how long will it take?

These are difficult questions to answer which is why I recommend you learn from somebody who is experienced in the market.

DiNapoli Trading
One of the best methods to learn and which will give you the market confidence to stand firmly on your feet is DiNapoli trading developed by a veteran American trader called Joe DiNapoli.

Why do I recommend it, because this is the method I also use to analyse and trade the markets and it's great.


Why I like DiNapoli trading

These are some of the reasons –

  • I can use it to analyse any market in any time frame (5 min chart to yearly) and get a deep understanding of how the market is trading

  • The methods are perfectly suited to anyone who wants to allow some level of judgment in their trading

  • System traders you see always have to be there, day in day out because if they miss just one trade that's likely to be the one that either makes back their previous losses or takes their account to new levels - This is very difficult for a one-man-band

  • Conversely, a method like DiNapoli which yields a high percentage of winning trades and that is judgmental in nature can be picked up and traded at will, at almost anytime of the year - This means trading doesn't take over your life

  • DiNapoli enables me to always trade with an established entry, normally a retracement to the trend, trading retracements rather than buying strength or selling weakness means I have a great chance at getting what's called good trade location ie not buying at the top nor selling at the bottom of a move

  • DiNapoli enables me to always trade with a pre-defined stop loss

  • DiNapoli enables me to always trade with a clearly established objective for the position

  • I follow about 30 markets (stocks/bonds/FX/commodities) and trade them using the daily chart, holding positions for on average a week

  • I trade these using a combination of spread bets (see how to find the right spread bet broker) and cash markets using the excellent www.InterActiveBrokers.co.uk

Personally I don't really daytrade because I don't have the time but the same DiNapoli methods are applicable on the 5 min chart as well as the monthly.

What this means is you use the method to trade the time frame you're comfortable with and can manage due to your time commitments.

For example, somebody who's already working a full time job and cannot follow the markets that much during the day will use the methods for longer term trading. But the same methods can be used to trade very short term. Not many trading methods offer this kind of flexibility.

Hard work is a prerequisite – There are no shortcuts
Trading the markets successfully is not easy, so in order to prosper and develop the all important confidence (in both yourself and your method) you need many hours, weeks, months and even years of study.

If you think about it that's not too much different from trying to become good at any profession or game. It cannot be done in a few weeks and there lies the problem - most people want it all by today, tomorrow at the latest. This is always an important point to get across and it's not what we humans generally want to hear.

But if we face up to the reality it's actually great news because I think there's a simple formula to follow to successful trading, which is -

Get properly trained (or develop a solid method yourself)
+
Learning time (at least 1 year)
+
Real-time experience
+
Discipline (having a trading plan and sticking to it, including being disciplined when taking losses)

That equation isn't hard to understand, that's all you've got to do. To me the trick is to use a method like DiNapoli to kick start the whole process rather than trying to find out yourself what works and doesn't.

Beautiful trading opportunities are coming
Look at state of the world at the moment -
  • All the major economies are still a complete mess
  • The authorities view the correct medication to the debt explosion of the last 20 years is to create more debt
  • A global currency war is starting to develop
  • There is NO plan to repay any of the ballooning Government debt, just more empty promises
  • Food inflation is a real problem and it's trending higher
  • Energy prices are starting to have a serious effect on family budgets
  • The majority of the western banks are insolvent, but everyone is keeping quiet afraid to admit just how bad the finances are
Ultimately the Politicians got us into this mess and these are the people in charge of trying to get us out. Few if any of them (in power) have the will or guts to offer any credible long term solutions, instead they prefer to use more and more short term fixes which only prolongs and builds up the pressure for a later date.

What this all means is simple - over the coming years all hell is going to break out in the markets.

Imagine if you were in the position to properly analyse the markets and then trade with a solid trading plan? Believe me, experienced traders around the world are licking their chops right now at what the future holds.....

You can take your share of the profits as well but only if you really understand what you're doing. So my advice is simple – start your learning process as soon as possible.

Learn more about Joe DiNapoli's trading methods and philosophy
Watch these 4 videos for a good introduction to Joe DiNapoli and his trading methods -
Get more information and help at -
FREE Report : How to Learn Spread Betting and Prosper
How to build the all-important trading experience
Where to get trading help and advice
Which broker to use and why
Simple 2 month training plan to follow
Download the FREE report
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