Function

• Financial trading training is intended to provide enough insight into technical and fundamental analysis so traders are either able to replicate a trading strategy or be able to create their own. In addition, most financial trading training programs instruct how to use basic stock tools such as level I, level II quotes and live news feed to analyze stocks.
  
  

Types

• Training programs split the course up into fundamental and technical analysis or only focus on one area. Technical analysis involves more quantitative skills and fundamental analysis involves more insight and analytical strategies. Some training programs teach how to thoroughly analyze company reports and earnings to predict future price movements. Other training programs teach how to inspect the volume and the bid-ask spread to analyze small price movements. Volume is the amount of shares traded per day and the bid-ask spread is the difference between the best offer to buy a stock and the best offer to sell a stock.
  
  

Considerations

• Consider alternative training routes, which are free. There are numerous internships available at brokerage and trading firms. Although interns are not directly involved in trading, they are able to observe experienced traders and have a possibility of promotion. In addition, keep in mind nearly 95 percent of traders lose money in the stock market. The five percent of traders who are able to profit in the stock market do not want to publicize their trading strategy, for fear that the strategy may stop working. Although there are some traders who publish their profitable trading strategies, they often do so after the strategy has stopped being as effective or stopped working altogether.
  
  

Insight

• Before trading any money, consider opening a virtual stock account. No money can be gained nor lost in virtual trading. All stock shares and cash in virtual stock markets are imaginary. In addition, never trade more than you are willing to lose. Although trading strategies may prove themselves consistently profitable, a stock is able to drop to zero or rise exponentially at any movement regardless of any signs or catalysts--whether technical or fundamental.
  
  

Warning

• Nearly 95 percent of traders lose money in investing in stocks. Many financial trading training programs are not the least bit insightful. Many provide broad suggestions such as "cut your losses quickly" and "buy fundamentally sound companies." In addition, very few of the founders of these programs are transparent. It is virtually impossible to judge whether their training may be at all helpful.