The internet has made it easier than ever to learn trading for free. You have access to blogs, videos, books, podcasts, and more. Yet, most traders still fail.
Why?
Because there’s too much information. It’s overwhelming, confusing, and filled with conflicting advice.
So, if I had to start over from scratch, here’s exactly how I’d do it—step by step.
________________________________________
Step 1: Master Risk Management
No matter what type of trader you become—day trader, swing trader, options trader, quantitative trader, etc.—risk management is the foundation of long-term success.
It’s also one of the easiest things to master, and once you do, it will pay off for the rest of your trading career.
Risk Management Essentials:
✅ Never risk more than 1-2% of your account per trade.
✅ Always use stop losses to protect your capital.
✅ Focus on risk-to-reward ratios (aim for at least 1:2 or better).
✅ Manage position sizing properly to avoid blowing up your account.
Once you understand how to protect your capital, it’s time to expose yourself to the trading world.
________________________________________
Step 2: Learn & Explore Different Trading Styles
When you're just starting, you don’t know what you don’t know.
Your goal at this stage is to explore different trading strategies, tools, and methods.
What to Learn:
🔹 Candlestick patterns & price action
🔹 Indicators (moving averages, RSI, MACD, etc.)
🔹 Chart patterns (head & shoulders, triangles, etc.)
🔹 Market structures (support/resistance, trends, ranges)
🔹 Different trading styles (day trading, swing trading, scalping, momentum trading, etc.)
Mindset for This Phase:
🚀 Keep an open mind—don’t judge strategies too early.
🚀 Focus on learning rather than making money right away.
🚀 Accept that not everything will work for you—and that’s okay.
At this stage, your goal is not to become an expert in everything but to discover what resonates with you.
________________________________________
Step 3: Pick ONE Strategy & Go Deep
After exploring different strategies, you need to commit to ONE.
This eliminates information overload and allows you to focus on mastering a single trading method.
How to Choose a Strategy:
🔹 Does it fit your personality? (e.g., If you hate fast decision-making, avoid scalping.)
🔹 Does it match your lifestyle? (e.g., If you have a full-time job, swing trading might be better than day trading.)
🔹 Can you understand the logic behind it? (A good strategy should be simple, not overly complicated.)
Example: Mean Reversion Strategy in Stocks
• Identify stocks in an uptrend 📈
• Wait for a pullback (price moves lower)
• Enter when the stock shows signs of resuming the trend
• Sell on the next rally
By focusing on one strategy, you eliminate confusion and make faster progress.
________________________________________
Step 4: Create & Refine Your Trading Plan
Now that you have a strategy, it’s time to turn it into a structured trading plan.
Your trading plan should include:
✅ Market Conditions – When will you trade? Trending or ranging markets?
✅ Entry Rules – What signals will you use to enter a trade?
✅ Exit Rules – When will you take profits or cut losses?
✅ Risk Management – How much will you risk per trade?
💡 Example Trading Plan (Momentum Trading):
• Market: Trade only in strong uptrends.
• Entry: Buy when the price breaks above a key resistance level.
• Exit: Take profit at 2x risk, cut losses at a 1x risk.
• Risk Management: Risk only 1% of the account per trade.
A clear, structured plan removes emotion from trading and keeps you disciplined.
________________________________________
Step 5: Test Your Strategy (Before Risking Real Money)
You never know if a strategy works until you test it.
How to Test a Trading Strategy:
🔹 Backtesting – Analyze past data to see if the strategy has worked historically.
🔹 Forward Testing (Paper Trading) – Trade in a demo account without real money.
What You’ll Learn from Testing:
✔️ Does the strategy make money over time?
✔️ How often does it win vs. lose?
✔️ How big are the drawdowns?
✔️ Does it match your risk tolerance?
If the strategy performs well in testing, you now have a solid foundation to trade with real money.
If it doesn’t work, tweak and improve it—this is part of the process.
________________________________________
Final Thoughts: The Key to Long-Term Success
Starting over isn’t about finding the “perfect” system—it’s about following a structured approach.
Here’s the Path to Trading Success:
1️⃣ Master Risk Management – Protect your capital first.
2️⃣ Learn & Explore – Understand different strategies & tools.
3️⃣ Pick ONE Strategy – Focus on a proven method.
4️⃣ Create a Trading Plan – Define your rules clearly.
5️⃣ Test & Improve – Validate your strategy before going live.
🔥 Bonus Tip: Trading success is 80% psychology and 20% strategy. Stay patient, disciplined, and treat trading like a business—not a get-rich-quick scheme.
Why?
Because there’s too much information. It’s overwhelming, confusing, and filled with conflicting advice.
So, if I had to start over from scratch, here’s exactly how I’d do it—step by step.
________________________________________
Step 1: Master Risk Management
No matter what type of trader you become—day trader, swing trader, options trader, quantitative trader, etc.—risk management is the foundation of long-term success.
It’s also one of the easiest things to master, and once you do, it will pay off for the rest of your trading career.
Risk Management Essentials:
✅ Never risk more than 1-2% of your account per trade.
✅ Always use stop losses to protect your capital.
✅ Focus on risk-to-reward ratios (aim for at least 1:2 or better).
✅ Manage position sizing properly to avoid blowing up your account.
Once you understand how to protect your capital, it’s time to expose yourself to the trading world.
________________________________________
Step 2: Learn & Explore Different Trading Styles
When you're just starting, you don’t know what you don’t know.
Your goal at this stage is to explore different trading strategies, tools, and methods.
What to Learn:
🔹 Candlestick patterns & price action
🔹 Indicators (moving averages, RSI, MACD, etc.)
🔹 Chart patterns (head & shoulders, triangles, etc.)
🔹 Market structures (support/resistance, trends, ranges)
🔹 Different trading styles (day trading, swing trading, scalping, momentum trading, etc.)
Mindset for This Phase:
🚀 Keep an open mind—don’t judge strategies too early.
🚀 Focus on learning rather than making money right away.
🚀 Accept that not everything will work for you—and that’s okay.
At this stage, your goal is not to become an expert in everything but to discover what resonates with you.
________________________________________
Step 3: Pick ONE Strategy & Go Deep
After exploring different strategies, you need to commit to ONE.
This eliminates information overload and allows you to focus on mastering a single trading method.
How to Choose a Strategy:
🔹 Does it fit your personality? (e.g., If you hate fast decision-making, avoid scalping.)
🔹 Does it match your lifestyle? (e.g., If you have a full-time job, swing trading might be better than day trading.)
🔹 Can you understand the logic behind it? (A good strategy should be simple, not overly complicated.)
Example: Mean Reversion Strategy in Stocks
• Identify stocks in an uptrend 📈
• Wait for a pullback (price moves lower)
• Enter when the stock shows signs of resuming the trend
• Sell on the next rally
By focusing on one strategy, you eliminate confusion and make faster progress.
________________________________________
Step 4: Create & Refine Your Trading Plan
Now that you have a strategy, it’s time to turn it into a structured trading plan.
Your trading plan should include:
✅ Market Conditions – When will you trade? Trending or ranging markets?
✅ Entry Rules – What signals will you use to enter a trade?
✅ Exit Rules – When will you take profits or cut losses?
✅ Risk Management – How much will you risk per trade?
💡 Example Trading Plan (Momentum Trading):
• Market: Trade only in strong uptrends.
• Entry: Buy when the price breaks above a key resistance level.
• Exit: Take profit at 2x risk, cut losses at a 1x risk.
• Risk Management: Risk only 1% of the account per trade.
A clear, structured plan removes emotion from trading and keeps you disciplined.
________________________________________
Step 5: Test Your Strategy (Before Risking Real Money)
You never know if a strategy works until you test it.
How to Test a Trading Strategy:
🔹 Backtesting – Analyze past data to see if the strategy has worked historically.
🔹 Forward Testing (Paper Trading) – Trade in a demo account without real money.
What You’ll Learn from Testing:
✔️ Does the strategy make money over time?
✔️ How often does it win vs. lose?
✔️ How big are the drawdowns?
✔️ Does it match your risk tolerance?
If the strategy performs well in testing, you now have a solid foundation to trade with real money.
If it doesn’t work, tweak and improve it—this is part of the process.
________________________________________
Final Thoughts: The Key to Long-Term Success
Starting over isn’t about finding the “perfect” system—it’s about following a structured approach.
Here’s the Path to Trading Success:
1️⃣ Master Risk Management – Protect your capital first.
2️⃣ Learn & Explore – Understand different strategies & tools.
3️⃣ Pick ONE Strategy – Focus on a proven method.
4️⃣ Create a Trading Plan – Define your rules clearly.
5️⃣ Test & Improve – Validate your strategy before going live.
🔥 Bonus Tip: Trading success is 80% psychology and 20% strategy. Stay patient, disciplined, and treat trading like a business—not a get-rich-quick scheme.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.
📈 Forex & XAU/USD Channel:
t.me/intradaytradingsignals
💎 Crypto Channel:
t.me/FanCryptocurrency
Related publications
Disclaimer
The information and publications are not meant to be, and do not constitute, financial, investment, trading, or other types of advice or recommendations supplied or endorsed by TradingView. Read more in the Terms of Use.