# Spot Trading Opportunities

Many new traders gain a good grasp of the basics of trading, reading charts, and interpreting the market, but still struggle in identifying when they should apply the theoretical knowledge that they learned. It’s easy to get demotivated in the beginning because you know just enough to understand how much more there is to learn. You come to realize that your ideas in the beginning may seem too simple, or even naïve. It’s a feeling that comes from being overwhelmed by the idea of having to dig ever so deeper to find any meaning in the way the markets move.

It is important to start with the right mindset and accept that you won’t be able to spot every opportunity and make every trade. The more you try to pretend to be something you’re not, the harder it will be.

You have to find your edge, your niche, something that separates you from the rest of the market. The best way is to start with something that you already know and understand. If you have a background in IT take a look at the stocks of software services companies, if you grew up on the farm look-up the grain commodity markets, and if you were an early proponent of blockchain and cryptocurrency maybe that’s what you should be trading. Think locally and watch how people spend money and what they spend it on. Ask questions, drawing up hypothetical scenarios, and look at trading as a vehicle for testing those ideas.

You will find that there are a lot of different trading methods and philosophies with no single best approach. Every market in the world is priced by its participants, and it is therefore reflective of their beliefs. One common debate in trading and finance is whether technical analysis (the analysis of prices alone) is able to yield an edge. Critics argue that it does not because prices don’t accurately reflect all of the available information about a market, and therefore it’s better to trade using principles of value, demand and supply, and – generally – fundamental information.

“What works best” arguments are a waste of time. The market participants are the driving force behind what actually works, so the real solution is to acknowledge that what works best is exactly what the market believes at the time. It doesn’t necessarily matter if you’re right or wrong or your methods make sense. All that matters is what the rest of the market thinks now, and whether they arrive at the same conclusions as yourself. It will take some time to find your own groove in the markets, so starting somewhere familiar is an excellent first step to make.