4 Reasons Why Trading is So Hard + Best Courses to Learn Trading

Trading is hard. You explore in thinking you can outsmart the market. You’re excited. You’re eager to make that money. But it doesn’t take long before you realize just how hard it is to do. Why is it so hard? Most traders don’t realize there’s a whole world of professional traders, analysts, and institutions that have been doing this for decades. And they’re good at it. They’re called Smart Money, and they’re the reason why most traders fail. If you want to succeed at trading, you need to understand how Smart Money works. That’s where smart money trading comes in—it teaches you how to identify institutional footprints, spot liquidity zones, and align your trades with market movers. If you don’t, you’ll continue to get crushed by the market. But once you do, you’ll be able to trade with confidence, knowing you’re on the right side of the market.

Aqua Funded’s smart money funded trading program is the solution you’ve been looking for. It’s designed to help you understand how Smart Money works so you can trade like the pros. And the best part? It’s free. You’ll get access to a team of professional traders who will teach you how to trade like them. You’ll also get access to a community of like-minded traders all working to achieve the same goal of trading like the pros. If you’re serious about trading, this is the program for you.

4 Reasons Why Trading Is So Hard

1. Trading's Real-Time Complexity

Imagine trying to juggle dozens of balls at once, each representing a different event that impacts an asset's price. At any given moment, 20 to 50 significant events could be affecting the markets. The real challenge lies in understanding which of these events matter. For instance, gauging the impact of geopolitical tensions on crude oil prices requires a profound grasp of various factors. Such complexity isn't limited to any one asset class; it extends across the board, making trading challenging even for seasoned professionals.

2. The Human Element in Trading

Can traders consistently outperform the market? The harsh reality is, most don't. The human brain struggles to process vast amounts of information while managing emotional responses to market fluctuations. It’s not just about psychology; it’s about dealing with conflicting data points and narratives. This cognitive strain makes it challenging to maintain rational decision-making in high-stakes environments.

3. The Data Processing Paradox

In today’s trading environment, more data can lead to worse decisions. This phenomenon, known as "analysis paralysis," occurs when traders are overwhelmed by an excessive amount of information. Even experienced analysts and economists struggle to process market events effectively. The key is not just more data, but better data processing. Successful traders need systems that can contextualize and prioritize information, identifying which events truly matter amid the noise.

4. Beyond Traditional Analysis

The nature of markets has evolved, and traditional analysis methods often fall short. Initially, technical and fundamental analysis seemed sufficient. However, in a world of interconnected global events, these approaches can fall short. Today, the most successful traders combine human insight with technological capabilities. Relying solely on conventional methods is like fighting yesterday’s battles with outdated tools.

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11 Tips for Trading Like a Pro

1. Trade Fearlessly with Aqua Funded

Turn your trading skills into substantial profits without risking your capital. Aqua Funded gives you access to accounts up to $400K with the most flexible trading conditions in the industry, no time limits, easy-to-achieve profit targets, and up to a 100% profit split. Join over 42,000 traders worldwide who’ve already collected more than $2.9 million in rewards, all backed by our 48-hour payment guarantee. Start trading today with instant funding options or prove your skills through customizable challenge paths and keep every cent you earn.

2. Stay Informed, Stay Ahead

To succeed in trading, you need to be clued up on the latest market news and events that affect stocks. This includes interest rate plans from organizations such as the Federal Reserve, announcements of key indicators, and economic, business, and financial news. Make a wish list of stocks you’d like to trade and do your homework. Get to know the companies, their stocks, and the markets in which they operate. Scan business news and bookmark reliable outlets.

3. Set Boundaries with Your Capital

Assess and commit to the amount of capital you’re willing to risk on each trade. Many successful day traders risk between 1% and 2% of their account per trade. If you have a $40,000 trading account and are willing to risk 0.5% of your capital on each trade, your maximum loss per trade is $200 (0.5% x $40,000). Make sure you’re trading with funds you can afford to lose.

4. Make Time for Trading

Day trading requires your full attention. You’ll need to give up most of your day, so consider this option only if you have sufficient time. You’ll need to track the markets and spot opportunities that can arise at any time during trading hours. Being aware and moving quickly are key.

5. Start Small and Scale Up

As a beginner, focus on trading a maximum of one to two stocks during a session. Tracking and finding prospects is easier with just a few stocks. It’s now common to trade fractional shares, which let you specify smaller dollar amounts to invest. This means that if Amazon.com shares are trading at $170, many brokers will let you buy a fractional share for as little as $5.

6. Steer Clear of Penny Stocks

You’re probably looking for deals and low prices, but stay away from penny stocks. These stocks are often illiquid, and the chances of striking it rich with them are slim. Many stocks trading under $5 a share become delisted from major stock exchanges and are only tradable over-the-counter (OTC). Unless you see a genuine opportunity and have conducted thorough research, steer clear of these.

7. Master Trade Timing

Many orders placed by investors and traders begin to execute as soon as the markets open in the morning, contributing to price volatility. A seasoned player can recognize patterns at the open and time orders to make profits. For beginners, it may be better to read the market without making any moves for the first 15 to 20 minutes. The middle hours are usually less volatile, and then movement begins to pick up again toward the closing bell.

8. Limit Orders Save the Day

Decide what type of orders you’ll use to enter and exit trades. Will you use market orders or limit orders? A market order is executed at the best price available, with no price guarantee. It’s useful when you want to enter or exit the market and don’t care about getting filled at a specific price. A limit order guarantees the price but not the execution. Limit orders can help you trade more precisely and confidently because you set the price at which your order should be executed.

9. Keep Your Expectations Realistic

A strategy doesn’t need to succeed all the time to be profitable. Traders can be successful by only profiting from 50% to 60% of their trades. However, they need to profit more on their winners than they lose on their losers. Ensure the financial risk on each trade is limited to a specific percentage of your account and that entry and exit methods are clearly defined.

10. Reflect, Learn, and Adapt

Frequent reflection on investment behavior enables traders to identify patterns, learn from past mistakes, and refine their strategies. This fosters continuous learning and adapting to ever-changing market conditions. It also promotes discipline and emotional control, which are essential for successful trading.

11. Stick to Your Plan

Successful traders must move fast, but they don’t have to think fast. Why? Because they’ve developed a trading strategy in advance, along with the discipline to stick to it. Follow your formula and methodology closely rather than trying to chase profits. Don’t let your emotions get the best of you and make you abandon your strategy. Plan your trade and trade your plan.

10 Best Courses to Learn Trading for Beginners

1. Aqua Funded: Trade Big Without the Risk

AquaFunded is an advance for traders seeking to scale their operations without risking their capital. Imagine having access to accounts up to $400,000 with the most flexible trading conditions in the industry. No time limits, easy profit targets, and a profit split of up to 100% make it a favorite among over 42,000 traders worldwide. 

They’ve already collected more than $2.9 million in rewards, backed by a 48-hour payment guarantee. With instant funding options or customizable challenge paths, AquaFunded lets you keep all your earnings. It’s a no-brainer for serious traders wanting to take their skills to the next level.

2. Financial Markets Foundations by Yale: Your Trading Bedrock

Before diving into complex trading strategies, it is crucial to understand the basics. Yale University’s Financial Markets course on Coursera, taught by Nobel laureate Robert Shiller, offers this foundational knowledge. 

With over 2 million enrollments, it utilizes historical examples to illustrate how global markets function. You’ll grasp concepts like risk diversification, market efficiency, and behavioral finance, which examines irrational market behavior. This course also covers the role of regulations and institutions, offering an economic framework for valuing assets.

3. Warrior Trading’s Day Trading Strategies: Your Go-To Resource

Warrior Trading offers a comprehensive collection of day trading education. With over 100 hours of pre-recorded video lectures, live-streamed presentations, interactive tools, and community feedback, it’s a one-stop shop for aspiring day traders. Investopedia ranks this course as the best for a reason. It covers everything from basic strategies to scaling up your trades, giving you the skills you need to succeed in this challenging field.

4. Practical Trading Skills with Udemy’s Foundation Course

For those who want a more hands-on approach, Udemy’s Complete Foundation Stock Trading Course is a great choice. Unlike Yale’s course, which focuses on theory, this one emphasizes practical skills. Taught by professional trader Mohsen Hassan, it covers stock market mechanics, technical analysis, risk management, and trading psychology. You’ll learn to execute different order types and even profit in downward markets, making it a solid choice for aspiring traders.

5. Udemy’s Beginner Course: A Starting Point for Novices

If you’re new to trading, Udemy’s Stock Market from Scratch for Complete Beginners is a great place to start. It’s specifically designed for novices, so it doesn’t assume any prior knowledge. The course is often available at a discounted rate, making it an affordable option for those just starting. It covers the basics of stock trading, providing a solid foundation for further study and exploration.

6. Advanced Trading Techniques: Udemy’s Next-Level Course

Once you’ve mastered the basics, Udemy’s Advanced Stock Trading Course + Strategies is the next step. This course delves into the mechanics of professional trading, examining how dark pools and ECNs influence price action. Instructor Mohsen Hassan uses whiteboard illustrations to break down complex concepts, making them easier to understand. You’ll also learn how to evaluate company fundamentals, understand macroeconomic factors, and develop a structured trading plan.

7. Free Trading Education from Charles Schwab

Charles Schwab offers a vast collection of free trading and investing education, even if you’re not a client. The content encompasses a range of financial instruments, including stocks, bonds, options, and futures. It’s constantly updated, ensuring it remains current and relevant. Whether you’re a beginner or an experienced trader, there’s something here for everyone.

8. Humbled Trader on YouTube: A Free and Honest Resource

Shay, known as the Humbled Trader, has established a popular YouTube channel offering day trading education. With over 1.3 million subscribers, she provides a balanced and transparent approach to day trading. Her content includes educational videos, live trade recaps, and practical guidance for developing trading discipline. It’s an excellent resource for those who want to learn at their own pace, without the hype often found in trading education.

9. Master Your Mind with the London Academy of Trading

The London Academy of Trading’s Trading Psychology Workshop is all about mastering your mindset. It’s a top choice for learning how to manage one of the most underestimated aspects of trading your mind. The course combines fundamental and technical aspects of trading with psychology, offering high-quality content in a high-impact learning environment. It’s essential for anyone seeking to enhance their trading performance.

10. Beginner-Friendly Forex Trading on Udemy

Udemy’s Best Forex Trading for Beginners course offers a realistic view of currency trading. Instructor Kirill Eremenko utilizes live trades to illustrate complex concepts, making them more accessible to beginners. The course covers forex fundamentals, broker account setup, and order execution, as well as risk management techniques. It’s a great starting point for anyone interested in forex trading.

5 Mistakes to Avoid as a Trader

1. Avoid Emotional Reactions

Trading can mess with your emotions. You buy a stock, and then its value drops. Or you miss a move you were sure about. In these moments, feelings like anger and anxiety might push you to make rash decisions. You might double down on a losing trade or chase a move that's already happened. Keep your cool. Markets go up and down. Instead of panicking, think about how to manage your risk.

2. Stick to Your Plan

It's tempting to change your strategy when things don’t go your way. You might cancel a stop-loss order to avoid admitting a mistake. Or you might switch indicators to justify holding a losing position. However, changing the rules mid-game often leads to greater losses. Stick to your original plan and take small, quick losses. You’ll be better off in the long run.

3. Tread Carefully During Earnings Season

You might feel confident about a stock’s direction during earnings season. You’ve done the research, and your indicators are signaling a strong move. But earnings reports can bring surprises. It’s often safer to avoid trading around earnings announcements. Markets can react unpredictably, and you don’t want to get caught in the crossfire.

4. Find Your Trading Rhythm

Day trading can be stressful, while swing trading might feel too slow. If you’re uncomfortable with your trading pace, your decisions might suffer. Find a time frame that suits your personality. You’ll likely think more clearly and make better choices when you’re trading at a pace you enjoy.

5. Don’t Try to Time the Market

Catching tops and bottoms might sound exciting, but it’s a risky game. Many traders spend too much time trying to buy at the lowest point or short at the top. This approach often leads to more losses than gains. Focus on making money, not on crafting a dramatic trading story.

Ready to enhance your trading skills? With AquaFunded’s funded trading program, you can trade with significant capital without risking your own money. Access accounts up to $400K and enjoy some of the most flexible trading conditions in the industry. Join over 42,000 traders worldwide who have already earned more than $2.9 million in rewards.

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Why is trading so hard? It's not just about predicting market trends. It's about managing your emotions, balancing risk, and finding a system that works for you. AquaFunded offers a solution. This platform lets you trade without risking your capital. With accounts up to $400K, you can focus on honing your skills. Forget about time limits or harsh conditions. 

You're free to trade your way with easy profit targets and flexible terms. Additionally, the 48-hour payment guarantee ensures that you receive your rewards promptly. With instant funding or customizable challenges, AquaFunded gives you the freedom to grow as a trader.

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