1️⃣ Choose your style of trading.
➡ Day trading or swing trading. It’s always best to start swing trading first then work your way to day trading. Can you start day trading?
Yes, but you may experience more issues in the beginning but you will make it through it. If you have issues controlling your emotions with swing trading fix those issues before moving on to day trading.
2️⃣ Decide what to trade
➡ I will keep this one simple. Trade either shares or options. It’s best to start with shares if you haven’t been properly educated on options.
Trading options is very dangerous if you’re an emotional trader. You have to follow the risk plan 100% or you will get smoked.
3️⃣ Create a trading plan
➡ A trading plan is very important you need to have this for every single trade you take. Here is a simple example. You have identified a proper trade based on risk/reward and now it’s time to plan the trade.
You need to identify your entry point, your stop loss, and your profit targets. You will follow this plan when you enter your trade. If you become emotional lean on the trading plan because you made that plan with little to no emotion.
4️⃣ Start trading in a Demo Account
➡ You will hear most people say Demo accounts are a waste of time. I disagree with that. My view is you use the account to learn the basics of trading and back testing your strategy.
Also, a big thing for me is if you don’t have the patience to use a demo account you will most likely have issues trading with a real money account. Patience is key in trading and right out the gate, you can’t even show patience you will have problems.
Here is the main tip I can give for a Demo account. Trade like it’s a real account. Meaning don’t trade with million-dollar positions just because it’s fake money. Either you are taking trading seriously or you’re not.
5️⃣ Start trading with a Real Account
➡ This step is simple just open a real money account and start your journey.
When you first start trading it’s best to start with smaller-sized positions for at least a few months. One of the most important things as a new trader is to build confidence. So don’t size up after wins because it just takes one big loss to crush all the confidence you built.
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