How Trading Tactics Is Emerging As An Industry Itself In The Education Sector

In trading the majority of retail traders lose money; the numbers can be 90-95% who loses money trading stocks, futures, options and commodities. They struggle to make money as decision making regarding their trades are based on news, heard - on - street, tips, gut feeling etc. Trading is done without risk management or money management, no decision-making analytics is involved in making a buy or a sell decision.

Retail traders have realised that losing money on a regular basis in trading activity is not a good sign for long-term survival in the business. Hence the need of getting oneself educated in trading tactics has arisen, which is the right way. First, learn and then earn. Traders have realised that trading is like any other profession, first, they need to understand, learn, practice or get mentored and then take trading decisions with regard to buy or sell or short sell.

Why it is important to strengthen trading literacy:

• A trading survey undertaken on specific demographic parameters have shown that many people fail to manage their trading activity properly with profitable results.
• Typically, a retail trader blows off his trading account within a period of 6-12 months.
• Many people want to have an additional financial cushion for financial commitment at a future date.
• On any given day millions of trading decisions are taken. Improving the quality of these trading decisions is key to long-term survival in trading business.
• Numerous international surveys have also demonstrated, low level of understanding ding of trading with regard to stocks, futures, commodities and currencies.

Based on the above factors it has emerged as an industry itself in the education sector.

People are looking to learn to trade, further, they are looking for specialisation as a day trader, swing trader or positional trader. Many want to trade a specific market segment like single stock futures or options trading or precious metals and crude in commodities segment. Some want to focus on futures and options of indices like nifty and bank nifty.

The trading education sector is new and is evolving. Trading tactics programs are offered both, online which can be a live session which can be instructor lead with a two-way audio-video facility or recorded video lessons format or physical classroom format. Both online and physical classroom format has been accepted by traders and various trading education academies conduct programs in both the format of education delivery.

Trading tactics programs are offered based on trading style and various asset class  

Trading Style: Day Trading. Swing Trading. Positional Trading.

Asset Class: Stock Trading. Futures Trading. Options Trading.Commodities Trading. Quantitative Trading Techniques. Volatility-Based Trading to name a few.

While joining a trading tactics program one should consider a Trading experience of faculty, study notes and workshop materials, post classroom support, technology support on trading platforms.

This Article Is Written by Hitesh Chotalia, Education Head, Finlearn Academy