Education

How to Begin Trading in 6 Steps

If you have already taken the leap and started trading – You may skip this article and enjoy your day 😊

Beginner traders, I’m writing this for you!

Financial trading has never been more accessible, cheaper and innovative than ever before.

What you have available today, I once had to pay up to $10,000 a year. And some charting platforms cost up to $25,000 a year!

Absolutely insane.

And now today, it’s ready for you for practically FREE especially on TradingView!.

However, if you’re ready to to embark on this journey successfully, there are some essential components that you must have.

You’ll need 6 things to start your trading the right way.

1. Trading Platform

A trading platform is your gateway to the financial markets.

It’s an online software that allows you to execute trades, monitor markets, analyze price charts, and do much more.

The best platforms are user-friendly, offer a wide range of tools, and support multiple asset classes such as stocks, forex, insdices, commodities, and cryptocurrencies. They should also offer either spread betting, CFDs (which is what I like), futures and or lots.

Make sure the platform you choose is regulated by relevant financial authorities and offers strong security measures to safeguard your funds and data.

2. Charting Platform

A charting platform is a tool used to visualize market data.

You should be able to choose various formats such as line, bar, and candlestick charts.

They also provide a range of technical analysis indicators, such as moving averages, RSI, MACD, and Fibonacci retracements, which can help you analyze market trends and make informed trading decisions.

When you choose a charting platform, consider its ease of use, customizability, the range of available indicators, and compatibility with your trading platform.

3. Fund Your Account

Before you can start trading, you need to fund your trading account.

Now here’s the funny thing.

Most people put in like $1,000 or like $10,000 – Something ridiculously small.

And they just keep it at that. Look, you can have a sizeable account in your portfolio. And you can trade as if you have $1,000. You don’t need to trade everything.

But you do need to take that leap and deposit money into your account.

Also, understand the platform’s margin requirements to avoid potential margin calls (When they tell you – you have to cough up more money).

You need to be 100% ready and have your capital management prepared to a T.

4. Trading Strategy

This is your roadmap.
This is your ‘holy-grail’
This is your game plan.
This is your future plan in the financial markets.

You get the point.

A strategy will outline:

• How to know when a trade lines up.
• When to enter trades according to criteria
• When to exit a trade according to criteria.
• When to adjust your trade if need be (Lock in profits, cut losses, maximise gains).
• Which markets to trade
• How much to risk on each trade.

Your strategy can be based on technical analysis, fundamental analysis, or a combination of both.

I have used a 20 year old strategy that incorporates chart patterns, money management rules, two indicators and Smart Money Concepts.

More importantly, your strategy should align with your financial goals, risk tolerance, and trading schedule.

5. Trading Journal

A trading journal is a record of all your trades.

It includes entry and exit points, the reasons for taking the trade, the strategy used, and the outcome.

I also have other elements like Mistakes, Emotions, Drawdowns, Risk to reward and so many more.

Basically, it’s a valuable tool to reflect on your performance.

This will allow you to review your trades, learn from your mistakes, and improve your strategy over time.

6. Rules and Criteria

To ensure discipline and risk management in trading, it’s essential to set rules and criteria. These guidelines will help you remain consistent and prevent emotional decision-making. Here are some examples:

• Halt after a 15% drawdown on your account:

This rule can prevent further losses during a bad trading period.

It’s a form of risk management, forcing you to stop and reassess your strategy when things are not going as planned.

• Never risk more than 2% per trade:

This rule ensures that even multiple losing trades in a row won’t wipe out your account.

• Only trade with the trend:

When market is up – only look for longs.
When market is down – only look for shorts.
When market is sideways – Be cautiously

• Every trade needs a stop-loss and take-profit level

This automates risk management, ensuring you exit trades at predetermined levels.

• Limit the number of trades per day or period

This prevents overtrading. Always think quality versus quantity. And if you have a couple of trades, make sure you know what the WORST case scenario is for your portfolio if you hit a losing streak.

Sometimes it’s best to hedge positions (Longs and Shorts). and keeps you focused on quality rather than quantity.

• No trading during high-impact news events

Markets can be particularly volatile during these times, which can increase risk.

This is just a fraction of your journey.

Enjoy your trading journey.

It’s exciting.

It’s also long, be patient. This won’t take a month, a year or even three years.

But after 3 years, you’ll get a taste of the potential of trading fortunes.

But it’s all up to you!

This needs preparation, discipline, and constant learning.

You have the starting steps…

Now get to it.

Timonrosso

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Trade Well,
Timon Rossolimos
Founder, MATI Trader
(Pro trader since 2003)

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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.