Welcome to your trading journey! This page is designed to help beginners understand the basics of trading.
1. Learn the basics
- Understand what stocks and ETFs are
- Learn order types (market vs limit vs stop)
- Get familiar with margin and buying power
- Go to the resources and look at the books/courses for python and trading
2. Open a practice account
- Many brokers offer paper‑trading or simulator modes. Look at the resources/brokers page
- Try placing dummy orders to build confidence. This is very important
3. Pick a simple strategy
- Start with basic trend‑following or mean‑reversion
- Most of the big funds use very basic strategies - don’t try to overcomplicate your strategies
- Backtest historical data before risking real capital
- Do not overfit the data. Overfitting and cherry-picking timeframes is a common mistake
4. Manage your risk
- Never risk more than 1–2% of your account on a single trade
- Use stop‑loss orders and position sizing rules
- Remember you do not want to lose your account and have not capital left to trade in the future
5. Automate and iterate
- Learn a bit of Python and use a broker API (e.g. Alpaca, Interactive Brokers, Oanda)
- Build scripts to fetch price data, calculate signals, and submit orders
- Log every trade and review your P&L to refine your approach
6. Be patient and persistent
- Never give up. If you’re not making progress, don’t give up
- Many times I run into issues and with a bit of patience, I’m able to solve them
7. Never stop learning
- Take your time, build your playbook, and never stop learning
- Happy trading!