1. How to Start Trading: Introduction
  2. How to Start Trading: Trading Styles
  3. How to Start Trading: Trading as a Business
  4. How to Start Trading: Trading Technology
  5. How to Start Trading: Order Types
  6. How to Start Trading: Trading Plan Development
  7. How to Start Trading: Testing Your Trading Plan
  8. How to Start Trading: Live Trading Performance
  9. How to Start Trading: Conclusion

Trading is an active style of participating in the financial markets that seeks to outperform traditional buy-and-hold investing. Rather than trying to profit from long-term uptrends in the markets, traders look for short-term price moves to profit in both rising and falling markets.
 
As a trader, one of the most important things you can do to improve your chances of success is to approach trading as a business. A successful trading business requires a strategic plan that covers your actual business and your actual trading. Your business plan will include things like short and long-term goals, the amount of capital you have available for the business and how you will set up your office. Your trading plan includes the details of trading: what you will trade and how you will trade it. Your plan should be so objective and concise that you could hand it over to another trader and they would be able to execute it exactly.
 
It’s important to understand that your trading plan is not simply a set of rules that you think will work, a list of set-ups that you are somehow fond of, or someone else’s plan. A good trading plan is one that you have researched, tested on historical data, tested in a live market and continue to evaluate at regular intervals.
 
Successful trading involves more than reading a few articles or books. You should plan on devoting a substantial amount of time and effort before ever placing a trade in a live market. This can be difficult because most new traders are anxious to get in the market. While the research and time commitments may sound daunting, they're a realistic and integral part of becoming a profitable, independent trader.

This tutorial serves as an introduction to help you get started trading. For more information, be sure to check out part two of our series, which covers more advanced topics including charting, leverage, risk and strategy automation.

 


How to Start Trading: Trading Styles
Related Articles
  1. Trading

    Beginner Trading Fundamentals

    ...
  2. Trading

    10 Traits of a Successful Options Trader

    This article will help you understand the 10 characteristics required to become a successful options trader.
  3. Trading

    9 Tricks of the Successful Forex Trader

    These steps will make you a more disciplined, smarter and, ultimately, wealthier trader.
  4. Personal Finance

    Goals For Novice Traders

    You're starting out in the investing world as a trader, so now what? We give you a few tips on how set your goals.
  5. Trading

    5 Deliberate Things to Do to Improve Your Trading

    Most traders put in trading hours, but don't improve. Here's 5 steps to take you to the next level.
  6. Trading

    4 Reasons Why You Need A Forex Trading Journal

    Most brokers will provide you with trade records, but it's also important to keep track on your own.
  7. Personal Finance

    Quit Your Job To Trade Stocks?

    Ready to quit your day job and become a full-time trader? These tips will help you determine your area of expertise.
Frequently Asked Questions
  1. What is the Exponential Moving Average (EMA) formula and how is the EMA calculated?

    Learn the formula for calculating both simple moving averages and exponential moving averages, indicators that are frequently ...
  2. I placed a limit order to buy a stock after the market closed, but the stock's price gapped above the entry price and my order never got filled. How can I prevent this from happening?

    You can minimize the chances of this situation happening if you understand two types of orders: the buy-stop order and the ...
  3. China vs Hong Kong stock: Is H-shares and A-shares the same?

    Learn what the difference between A-shares and H-shares of publicly listed companies in China and Hong Kong stock exchange. ...
  4. Why does time value of money (TVM) assume that a dollar today is worth more than a dollar tomorrow?

    Learn about time value of money, or TVM, and how a present value calculator is used to determine the value of money received ...
Trading Center