Quick Start Guide For Newbie Traders

You are eager to get started and be a badass trader. We get it! Along side your greed, you are probably also a little fearful. Maybe even confused. There is so much information out there. We will break it down for you into eight no-nonsense steps. (Spoiler alert: you may not like all the steps!)

To get going in the right direction follow the steps below.


Gold medal for wasting time
Step 1: Stop aiming for perfection

That's right, your quick start begins by stopping. You don't need to find the "best" broker or the "best" trading system. What does that even mean, anyway? Accept that the perfect thing does not exist. And remember, nothing you decide on Day 1 is forever. You are allowed to change your mind later.

Make plans if you want to. Keep in mind these words from the great boxer and statesman Mike Tyson: “Everybody has plans until they get hit for the first time.”


Chart
Step 2: Settle on one asset class

Are you going to trade stocks? Forex? Crypto? Commodities? Options? Junk Bonds? Something else? Each market has its own characteristics and sometimes different rules. Focus on one and commit to it.


Make friends with a broker
Step 3: Find a broker

Turn off your computer, put away your smartphone, and make a list of every broker you can think of. It doesn’t have to be a long list. Then research each one and see if they offer trading in the market you are interested in and available in your state/country of residence. Also - and important! - do you have enough money to satisfy any account balance requirements? From the brokers that remain on your list, just pick the one you like the most. (See: Step 1)


Get money into your account
Step 4: Open and fund an account

This should be obvious, but some people get cold feet when it comes time to part with some money. This is the point of no return.


Learn by doing
Step 5: Start trading!

Some experts recommend “paper trading” at the beginning. We do not agree. You need to have some skin in the game - but not too much! - if you want to learn quickly. Losing real money is the best teacher. There is a Buy button and a Sell button. Go!


Disect your trades
Step 6: Examine your trades

Common wisdom is to keep a journal and write down why you bought and sold everything. It is certainly good advice, but if that is not your style then you should at least spend some time reflecting on what happened and why.

  • What prompted you to make the trade?
  • What were the market conditions like at the time?
  • What kind of mood were you in?
  • How did the trade turn turn out?
Be honest with yourself. If you are attributing too many of your losses to bad luck then you are surely not learning from them.


Make time to read
Step 7: Read a lot every day, act on little

If you want to do your own research, you first have to do your homework.

There are no shortcuts to getting good at any skill, including trading. Invest some time every day to read about the subject. It doesn’t matter that much what you read. Variety is the key. Read about tactics and strategies. Read the chatter on social media. Read about the pioneers from decades past. Videos don’t count. Put a clock on it and keep track of how many hours you have put in.


Avoid blowing up
Step 8: Survive!

YOLO-ing is for idiots. The most important skill you need to acquire is learning how to survive. The fancy term for this is "risk management". Call it whatever you like. Just make sure you stay in the game long enough to learn how to succeed.


Were you expecting something different?

Getting started with trading is both easier and harder than you think. There are no well-known secrets that everybody except you knows. You just have to learn by doing.

Learn about the Swingex Index and how it can help improve your trading.