New Traders: STEPS 1 through 10

New Traders: STEPS 1 through 10

New Traders: STEPS 1 through 10











  1. Do not look for a job look for a career, the best way to get up enough trading capital to be a serious trader is to create value somewhere else then save that money to trade with. A career or your own business is the likely place your trading capital will come from.Starting with a tiny amount of capital is almost impossible to grow into something substantial with out taking unwise risks.

  2. If you do not have enough money to trade with then wait, build your capital and study. Without at least $25,000, it will be very difficult to really trade and get compounding working for you. Commissions an even the bid/ask spread can even eat up a small account. The market will be here, there is no hurry to start before you are really ready. Don’t focus on hurrying up and trading, focus your energy on studying and building up your account.

  3. Don’t get deep into debt, stay as debt free as possible. Car payments, eating out in restaurants, running up credit card bills, and getting in a big mortgage will make it very hard to build up any capital or even to just keep it once you do build it and start growing it.

  4. Choose your life partner or spouse very carefully it will be almost impossible to trade in any way if you do not have 100% support from your significant other.

  5. Trading is not a lazy person’s sport, the winning traders are usually the ones that put in the most study and testing. If you are looking for easy money look elsewhere, there are too many professionals waiting to take your money in the markets for it to just be laying around.

  6. The biggest thing that trips up new traders is that they don’t even know what the right questions are so they are unable to find any answers. First find out what you need to know then go learn it.

  7. Do not attempt to get rich quick trading that is the fastest path to becoming broke. Instead the goal should be very nice annual returns like 20%-30% would be great for compounding your capital.

  8. Pick a trading style and become an expert in that style, a jack of all trades is generally a master of none.

  9. Study charts, study winning traders, read the most helpful trading books, study the right things and avoid the useless predictions, and talking heads.

  10. First decide on exactly what all your goals are as a trader, your annual returns, maximum drawdown you can handle, what really fits your personality then start with your goal in mind and work backwards to find a system and money management method that could make that happen.