How to start Trading!
We (the discord mods) are trying to get a document going where people can look for advice on how to get started in trading, its not an easy question and certainly not an easy answer, but here we go :)
Be prepared that to becoming a profitable trader you will need months (even years) of training and learning, but its worth the time!
The beauty of Tradingview and its tools (Paper trading) is that you can learn it all for free. (All you need is time). You can demo trade for free, learn and experiance how the market moves, learn what you want to do later in life and learn all the nessessary tools you will need!
We realize that certain information is maybe something that you dont agree first or you say "what? that cant be real?", but bear with us for the time being, go through this document and then decide!
So, lets start with the first question for you:
What lifestyle do you have at the moment?
Why is that important? well, for each trade you need a few hours of preparation, and if you are a daytrader (intraday trader or scalper) then you trade each day (even multiple times) and each time you need preparation, can you do that? can you sit 4-6h infront of the computer everyday to analyse a trade?
If not, we have other options for you.. for example swing trader or investor.
What type of person are you?
For example: if you decide to do scalping, be prepared to get more stressful situations then a daytrader.
So it's important to figure out how you want to trade and what you can actually handle (the psychology in trading has a HUGE impact of your trading life.)
If you go and test out some strategies and you realize that this is not for you, then you have a clear sign that you shouldnt explore this further.
What type of assets can you trade?
There are local laws that you have to follow in your country that may be restrictive to certain assets so you have to figure out what you can actually trade. There are plenty of assets outthere, you just have to explore them and search for a broker you can actually sign up with a KYC.
For this, the best option is to go to Brokers and check them out until you find one that is allowed in your country.
(Be careful with brokers not on tradingviews list, for example if you want to trade crypto but its not allowed in your country but you find some broker you can sign up, the problem comes once you want to withdraw and use the money in your country. your local bank is most likely not letting you do that.)
Basics of Trading
No matter what you decide to be (daytrader, scalper, investor..), you will need to learn the basics of all of them.
Learn all the basic Terms such as:
- Long / Short (Bullish / Bearish)
- Bid / Ask (combined with spread below)
- Crypto, Forex, CFD, Stocks, Options (Bonds, Shares, Indices...)
- Market Order / Limit Order (Stoploss (SL), Profit Target (TP), Trailing)
- Leverage
- Margin / Balance
- Spread / Slippage
- Gaps
- Ranges
- Timeframe / Sessions
And then there are the major Indicators:
- RSI
- MACD
- Stochastics
- Moving Averages (simple, exponential, smoothed, and so on..)
- Price trends
- Support and Resistance (Supply & Demand)
- Volume
I know, alot of you reading this go like "What? indicators are useless, price action is the real deal.." but thats not the point here, we are learning the basics of trading. The more you know the better you will be at trading. Knowledge is power.
Also i would advice you to study the math behind them too, while you do that you learn how and why they act the way they do!
Journal
Yes, we all hate it but we all know why its good to do! :)
The simplest method i find is to use the long/short tool of tradingview, write down the notes in a textfield and then hide it in the control-center of your drawings (rightclick into chart -> Object Tree)
Do it! you won't regret it!
Risk Reward
This topic is something so many of you ignore and its one of the most important part of trading.
You all heard the sentence "there is no trading without SL" and some of you may think "yeah, thats not true", but in the Risk Reward section you learn how and why this sentence is as true as it gets. you never, ever trade without SL because otherwise you cant calculate your risk.
There is also the golden rule "Never risk more then 1% of your Money" and with an SL you can manage this sentence, without it, how can you even begin to manage this? you can't.
(Yes, i know some of you risk 2-5%, but not me, im a firm believer you should never break this rule).
If you risk 1% and lose 10 times in a row, you lost 10%. if your RR is 1:3, you need 4 wins to regain your losses.
If you risk 2% and lose 10 times in a row, you lost 20%. if your RR is 1:3, you need 7 wins to regain your losses.
... you see where this goes, right?
For this, and any other topic above, the best thing to use is the Search function on tradingview, input the title and read it all. (yes, all, yes it will take weeks, yes tahts what its all about)
Psychology
Okey, this one is a big one. not gonna lie, that will take the most time because we are all humans.
you will experiance FOMO (fear of missing out), greed, rage, and so on... thats just normal.
Thats the biggest reason to start journaling your trades, write down what you felt, why did you take a trade that you realize you shouldnt have in the first place?
So, in psychology everyone needs to figure out how he/she is obviously, i can just tell you how i do it right now and what steps made the biggest impact:
I do only 1:2 RR trades.
- Yes, after 1:2 im out, i dont care if he goes to the moon, all i care is that im no longer in a trade (my mind plays all kinds of tricks while in a trade.)
- Big impact!
I only trade 1 asset.
- I trade EURUSD all day long for years now. No, i dont look at others while im actively trading.
- Big impact!
I set and forget.
- i put in my SL and TP and once im in the trade (or even set the limit order) im semi-afk from the charts.
- I have 2 alerts on my tradingview, one for the TP and one for the SL. thats it.
those few steps helped me a ton in my trading, and yes, they may not be for everyone but it is just a showcase of hwo you need to find something that works for you.
Be prepared that to becoming a profitable trader you will need months (even years) of training and learning, but its worth the time!
The beauty of Tradingview and its tools (Paper trading) is that you can learn it all for free. (All you need is time). You can demo trade for free, learn and experiance how the market moves, learn what you want to do later in life and learn all the nessessary tools you will need!
We realize that certain information is maybe something that you dont agree first or you say "what? that cant be real?", but bear with us for the time being, go through this document and then decide!
So, lets start with the first question for you:
What lifestyle do you have at the moment?
Why is that important? well, for each trade you need a few hours of preparation, and if you are a daytrader (intraday trader or scalper) then you trade each day (even multiple times) and each time you need preparation, can you do that? can you sit 4-6h infront of the computer everyday to analyse a trade?
If not, we have other options for you.. for example swing trader or investor.
What type of person are you?
For example: if you decide to do scalping, be prepared to get more stressful situations then a daytrader.
So it's important to figure out how you want to trade and what you can actually handle (the psychology in trading has a HUGE impact of your trading life.)
If you go and test out some strategies and you realize that this is not for you, then you have a clear sign that you shouldnt explore this further.
What type of assets can you trade?
There are local laws that you have to follow in your country that may be restrictive to certain assets so you have to figure out what you can actually trade. There are plenty of assets outthere, you just have to explore them and search for a broker you can actually sign up with a KYC.
For this, the best option is to go to Brokers and check them out until you find one that is allowed in your country.
(Be careful with brokers not on tradingviews list, for example if you want to trade crypto but its not allowed in your country but you find some broker you can sign up, the problem comes once you want to withdraw and use the money in your country. your local bank is most likely not letting you do that.)
Basics of Trading
No matter what you decide to be (daytrader, scalper, investor..), you will need to learn the basics of all of them.
Learn all the basic Terms such as:
- Long / Short (Bullish / Bearish)
- Bid / Ask (combined with spread below)
- Crypto, Forex, CFD, Stocks, Options (Bonds, Shares, Indices...)
- Market Order / Limit Order (Stoploss (SL), Profit Target (TP), Trailing)
- Leverage
- Margin / Balance
- Spread / Slippage
- Gaps
- Ranges
- Timeframe / Sessions
And then there are the major Indicators:
- RSI
- MACD
- Stochastics
- Moving Averages (simple, exponential, smoothed, and so on..)
- Price trends
- Support and Resistance (Supply & Demand)
- Volume
I know, alot of you reading this go like "What? indicators are useless, price action is the real deal.." but thats not the point here, we are learning the basics of trading. The more you know the better you will be at trading. Knowledge is power.
Also i would advice you to study the math behind them too, while you do that you learn how and why they act the way they do!
Journal
Yes, we all hate it but we all know why its good to do! :)
The simplest method i find is to use the long/short tool of tradingview, write down the notes in a textfield and then hide it in the control-center of your drawings (rightclick into chart -> Object Tree)
Do it! you won't regret it!
Risk Reward
This topic is something so many of you ignore and its one of the most important part of trading.
You all heard the sentence "there is no trading without SL" and some of you may think "yeah, thats not true", but in the Risk Reward section you learn how and why this sentence is as true as it gets. you never, ever trade without SL because otherwise you cant calculate your risk.
There is also the golden rule "Never risk more then 1% of your Money" and with an SL you can manage this sentence, without it, how can you even begin to manage this? you can't.
(Yes, i know some of you risk 2-5%, but not me, im a firm believer you should never break this rule).
If you risk 1% and lose 10 times in a row, you lost 10%. if your RR is 1:3, you need 4 wins to regain your losses.
If you risk 2% and lose 10 times in a row, you lost 20%. if your RR is 1:3, you need 7 wins to regain your losses.
... you see where this goes, right?
For this, and any other topic above, the best thing to use is the Search function on tradingview, input the title and read it all. (yes, all, yes it will take weeks, yes tahts what its all about)
Psychology
Okey, this one is a big one. not gonna lie, that will take the most time because we are all humans.
you will experiance FOMO (fear of missing out), greed, rage, and so on... thats just normal.
Thats the biggest reason to start journaling your trades, write down what you felt, why did you take a trade that you realize you shouldnt have in the first place?
So, in psychology everyone needs to figure out how he/she is obviously, i can just tell you how i do it right now and what steps made the biggest impact:
I do only 1:2 RR trades.
- Yes, after 1:2 im out, i dont care if he goes to the moon, all i care is that im no longer in a trade (my mind plays all kinds of tricks while in a trade.)
- Big impact!
I only trade 1 asset.
- I trade EURUSD all day long for years now. No, i dont look at others while im actively trading.
- Big impact!
I set and forget.
- i put in my SL and TP and once im in the trade (or even set the limit order) im semi-afk from the charts.
- I have 2 alerts on my tradingview, one for the TP and one for the SL. thats it.
those few steps helped me a ton in my trading, and yes, they may not be for everyone but it is just a showcase of hwo you need to find something that works for you.
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