New to Trading 5 Important Steps Before you get Started!

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New to Trading? 5 Important Steps Before you get Started!

So you found your way to, that’s a good start. First things first, it’s always great to be surrounded by other fellow traders so make sure you sign up so you can participate in the forum discussions. It’s free and will not take more than a minute so you have nothing to lose! Once you are in, it’s like showing up to a party, you introduce yourself and make some friends. Yes, who said traders must be lonely? There are people from all over the world and you can learn from them so what are you waiting for – an invitation? Well, you just got one! But hold on, here are five additional starters if you are totally new and want me to point you in the right direction, so keep reading and find out.

First Step – Get Your Charts Up!

Before you make any common mistakes or sign up with the first “get rich quick” scam that you have found, you must understand the difference between gambling and trading. I cringe every time I hear someone saying they are not using any charts or don’t know what they are… Since you are not going to make money gambling on binary options you need a charting software or application.
Candlestick charts are the best for getting the big picture. Don’t confuse these charts with the ones you get at your broker when you sign up. You should always have a third party charting application so you can analyze the Japanese Candlesticks and setup a trading strategy. Read this article about different ways and programs where you can display charts. Don’t even bother brokers or signal services and strategies unless you have this step covered!

Analyzing ‘them candles’ like a pro!

Tool Shopping – Getting Familiar with Strategies

Once you got your charts up, at first sight it will look like you are about to perform brain surgery.
Don’t give up, it will take some time for you to understand price action trading. First, you need to get familiar with your charts so you need to pick up a trading strategy. No strategy is gonna give you a steady win rate unless, as I said, you understand price action. However, a strategy is great for practicing purposes. A strategy consists (usually) of a set of indicators that you can insert on your charts. Here is a list of indicators but there are more. There are many strategies, some are adapted to 60 second trading, 5 minute trading, 15 minute trading or whatever the expiry and timeframe is.
It’s difficult to know which one is “the best strategy” but as I said, it’s not the strategy that is going to make you money, is your experience and the goal here is to get started with a simple strategy but on a demo account and grow your skills.

Boot Camp – Training & Demo

You might either already have a broker at this stage which also provides you with a demo account or not. Whichever the case is, you absolutely need to practice on a demo account with virtual cash before you get to the real deal. Remember that strategy you picked up that looked so promising and that was going to make you a millionaire? Go ahead and try it on a demo account first. You will soon learn that you need much more experience and once you do realize that, it means you are making progress. Time to advance, let’s go to step four!

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Gaining Skills – Trading is more than Simple Indicators

By the time you are here, you have probably tried out multiple strategies and you think it sucks that you haven’t found the Holy Grail yet. This is where the fun starts! You now need to start learning from your mistakes and successful trades – go to the “Trading Journals” room and as an example, here is my trading diary. Just do the exact same thing, take a trade, come to your diary and post it together with the analysis you made. Why did you lose or why did you win? Give as many possible reasons as you can, I recommend at least three. Other traders can then provide feedback and help you out. Do this for a while and I am certain you will gain lots of trading experience, this is the closest thing to the Holy Grail.

Choosing a Broker

You can make millions on a demo account but unless you sooner or later start doing live trades you won’t make any real money. But before you can test all your acquired skills you need to research and select a broker. Selecting your broker is almost like getting married. Why you ask? Because you want to have a long and decent relationship where you get your money and they don’t rip you off. After all, you are going to invest money and make money. Be sure to read about “How to choose a Binary Options Broker” on our many broker reviews page. so take your time and go through them and investigate the important aspects such as regulation, platform functionality, expiry times, payouts and more. Good Luck!

Confident First Steps: How Do I Get Started Trading?

By Robert Colville on October 27, 2020

In most any other profession, the first day means you show up, maybe get a quick tour and tutorial, meet a few co-workers, and then plop down at your desk and get to doing some real work. When you get started trading, though, things are—or at least should be—very different, and I’ll tell you why…

First, consider the obvious: That most traders work all alone and are self-directed, so there’s (usually) no office to tour, nor any co-workers standing by to help “show you the ropes.” Add to that the fact that many rookie traders begin their careers with no training or experience, and it’s no wonder that most simply jump in all alone and wind up struggling mightily very soon after.

Now, because that’s not the fate that you want—nor deserve—for yourself, we offer some honest advice intended to get you on a proper path much sooner. So rather than toiling away on your own, follow these steps to get started trading with the kind of clarity, purpose, and consistency that you’ll want to carry with you throughout your entire trading career.

Get Educated & Well Informed

Most newbies assume that their trading career begins whenever they place their first trade, but in reality, you can get started trading right here and right now without even considering an actual trade. That’s because it’s important for every new trader to have—or at least acquire—proper, working knowledge before making their first foray into the markets.

Some will opt to first develop technical analysis skills, like the ability to read candle charts, identify pertinent chart patterns, and recognise support and resistance levels. This is crucial baseline knowledge that will ultimately enable you to choose which markets and/or currency pairs you’ll trade, and most importantly, how you’ll trade them, whether it’s using technical indicators, pure price action, or some other, proven methodology.

But we’re also talking about vital introductory concepts like:

  • How forex and other market transactions work
  • Different currencies, their symbols, and traditional behaviour patterns
  • Seasonal cyclesand other known correlations between the equity and currency markets
  • Currencies most closely tied to oil price volatility
  • Whatleverage, or margin, is, and theimplications for traders who use it?

No need for worry, though. As it happens, we have an entire library of courses, instructional videos, and technical analysis basics inside the Lazy Trader Members portal, so you needn’t look any further than that for your first steps once you make the ultimate decision to learn to trade.

Learn to Become Proficient at Only One Thing First

Here’s the #1 idea and piece of perspective I wish I had back when I started trading: For all the trading strategies, methods, indicators, and set-ups out there, you should always strive to become an expert in only one first, rather than trying to be a student of everything! To get started trading is like entering a vast, new universe, and while it’s tempting to try to soak up every pattern, market, time frame, and methodology, that quickly becomes overwhelming. Plus, it’s counterproductive in that it divides your attention and ultimately slows your learning curve.

Instead, make it your business to identify just one pattern, analysis technique, and/or set-up that fits your specific risk profile and your unique personality, and then pour your entire focus into learning how to trade in that manner. Know going in, though, that you’re looking at committing several hours of reading, research, and practice to gaining knowledge and experience and honing your craft…and all that and more needs to happen before you “officially” get started trading your first position.

Choose a Mentor

If you were taking a holiday road trip to parts unknown, wouldn’t it would be wise to ask a person who’s been there before for directions and recommendations about how best to enjoy your time? And the same might be said if you were starting a new business venture, or perhaps pursuing a career in sport, or the arts. Gaining knowledge and insights from those who have already succeeded in your desired field is often invaluable, so as you get started trading, why not consider working with a mentor or trading coach?

Look, the plight of the new trader is well documented, and I’ve even told the story of my own, early struggles in trading. But for new traders who want to avoid the hurdles that most self-directed traders encounter, the key is to do what most traders aren’t doing, and partner with a coach or mentor to help empower your learning process and develop your trading skills.

Often times, working with a mentor or trading coach can help speed up the learning curve, although there’s another important step to undergo before placing that first “real” trade, too: Demo trading.

As you hone your skills and strategy by trading a demo account, your mentor or coach is well-qualified to help assess your process and results, and work alongside you to develop consistency and profitability. And, after a few consecutive months of positive demo trading results, you’ll know that you’re ready to start trading real money, and can rely on your mentor throughout the inevitable twists and turns of that journey, too!

Bottom line: New traders don’t have to go it alone; most simply choose to. But you can be different, and can have a better overall trading experience because of it. So as you get started trading, use all your available resources, including the education, trade ideas and analysis videos, and personalised mentoring that are yours via The Lazy Trader.

Learn How to Trade the Market in 5 Steps

Want to trade but don’t know where to start?

Millions of neophytes try their hand at the market casino each year, but most walk away a little poorer and a lot wiser, never reaching their full potential. The majority of those who fail have one thing in common – They haven’t mastered the basic skills needed to tilt the odds in their favor. However, if one takes the adequate time to learn them then they will be well on their way to increasing their odds of success.

World markets attract speculative capital like moths to a flame, with most throwing money at securities without understanding why prices move higher or lower. Instead, they chase hot tips, make binary bets and sit at the feet of gurus, letting them make buy and sell decisions that make no sense. A better path is to learn how to trade the markets with skill and authority.

Start with a self-examination that takes a close look at your relationship with money. Do you view life as a struggle, with hard effort required to earn each dollar? Do you believe personal magnetism will attract market wealth to you in the same way it does in other life pursuits? More ominously, have you lost money on a regular basis through other activities and hope the financial markets will treat you more kindly?

Whatever your belief system, the market is likely to reinforce that internal view over and over again through profits and losses. Hard work and charisma both support financial success, but losers in other walks of life are likely to turn into losers in the trading game. Don’t panic if this sounds like you. Instead, take the self-help route and learn about the relationship between money and self-worth.

Once you get your head on straight, you can embark on learning trading, starting with these five basic steps.

1. Open a Trading Account

Sorry if it seems we’re stating the obvious, but you never know (remember the person who did everything to set up his new computer—except to plug it in). Find a good online stock broker and open a stock brokerage account. Even if you already have a personal account, it’s not a bad idea to keep a professional trading account separate. Become familiar with the account interface and take advantage of the free trading tools and research offered exclusively to clients. A number of brokers offer virtual trading (more on that in step five). Investopedia has the Best Online Brokers Awards with reviews to help you find the right broker.

2. Learn to Read: A Market Crash Course

Financial articles. Stock market books. Website tutorials. There’s a wealth of information out there, much of it inexpensive to tap. And don’t focus too narrowly on one single aspect of the trading game. Instead, study everything market-wise, including ideas and concepts you don’t feel are particularly relevant at this time. Trading launches a journey that often winds up at a destination not anticipated at the starting line. Your broad and detailed market background will come in handy over and over again, even if you think you know exactly where you’re going right now.

Here are five must-read books for every new trader:

  1. Stock Market Wizards by Jack D. Schwager 
  2. Trading for a Living by Dr. Alexander Elder 
  3. Technical Analysis of the Financial Markets by John Murphy 
  4. Winning on Wall Street by Martin Zweig 
  5. The Nature of Risk by Justin Mamus 

Start to follow the market every day in your spare time. Get up early and read about overnight price action on foreign markets. (U.S. traders didn’t have to monitor global markets a couple of decades ago, but that’s all changed due to the rapid growth of electronic trading and derivative instruments that link equity, forex and bond markets around the world.)

News sites such as Yahoo Finance, Google Finance and CBS MoneyWatch serve as a great resource for new investors. For more sophisticated coverage, you need look no further than The Wall Street Journal, Bloomberg and, well, us at

3. Learn to Analyze

Study the basics of technical analysis and look at price charts, thousands of them, in all time frames. You may think fundamental analysis offers a better path to profits because it tracks growth curves and revenue streams, but traders live and die by price action that diverges sharply from underlying fundamentals. Do not stop reading company spreadsheets, because they offer a trading edge over those who ignore them. However, they won’t help you survive your first year as a trader.

Your experience with charts and technical analysis now brings you into the magical realm of price prediction. Theoretically, securities can only go higher or lower, encouraging a long-side trade or a short sale. In reality, prices can do many other things, including chopping sideways for weeks at a time or whipsawing violently in both directions, shaking out buyers and sellers.

The time horizon becomes extremely important at this juncture. Financial markets grind out trends and trading ranges with fractal properties that generate independent price movements at short-term, intermediate-term and long-term intervals. This means a security or index can carve out a long-term uptrend, intermediate downtrend and a short-term trading range, all at the same time. Rather than complicate prediction, most trading opportunities will unfold through interactions between these time intervals.

Buying the dip offers a classic example, with traders jumping into a strong uptrend when it sells off in a lower period. The best way to examine this three-dimensional playing field is to look at each security in three time frames, starting with 60-minute, daily and weekly charts.

4. Practice Trading

It’s now time to get your feet wet without giving up your trading stake. Paper trading, aka virtual trading, offers a perfect solution, allowing the neophyte to follow real-time market actions, making buying and selling decisions that form the outline of a theoretical performance record. It usually involves the use of a stock market simulator that has the look and feel of an actual stock exchange’s performance. Make lots of trades, using different holding periods and strategies, and then analyze the results for obvious flaws.

Investopedia has a free stock market game, and many brokers let clients engage in paper trading with their real money entry systems, too. This has the added benefit of teaching the software so you don’t hit the wrong buttons when you are playing with family funds.

So, when do you make the switch and start trading with real money? There’s no perfect answer because simulated trading carries a flaw that’s likely to show up whenever you start to trade for real, even if your paper results look perfect.

Traders need to co-exist peacefully with the twin emotions of greed and fear. Paper trading doesn’t engage these emotions, which can only be experienced by actual profit and loss. In fact, this psychological aspect forces more first-year players out of the game than bad decision-making. Your baby steps forward as a new trader need to recognize this challenge and address remaining issues with money and self-worth.

5. Other Ways to Learn and Practice Trading

While experience is a fine teacher, don’t forget about additional education as you proceed on your trading career. Whether online or in person, classes can be beneficial, and you can find them at levels ranging from novice (with advice on how to analyze the aforementioned analytic charts, for example) to pro. More specialized seminars—often conducted by a professional trader—can provide valuable insight into the overall market and specific investment strategies. Most focus on a specific type of asset, a particular aspect of the market, or a trading technique. Some may be academic, and others more like workshops in which you actively take positions, test out entry and exit strategies, and other exercises (often with a simulator).

Paying for research and analysis can be both educational and useful. Some investors may find watching or observing market professionals to be more beneficial than trying to apply newly learned lessons themselves. There are a slew of paid subscription sites available across the web: Two well-respected services include and Morningstar.

It’s also useful to get yourself a mentor—a hands-on coach to guide you, critique your technique and offer advice. If you don’t know one, you can buy one. Many online trading schools offer mentoring as part of their continuing ed programs.

Manage and Prosper

Once up and running with real money, you need to address position and risk management. Each position carries a holding period and technical parameters that favor profit and loss targets, requiring your timely exit when reached. Now consider the mental and logistical demands when you’re holding three to five positions at a time, with some moving in your favor while others charge in the opposite direction. Fortunately, there’s plenty of time to learn all aspects of trade management, as long as you don’t overwhelm yourself with too much information.

If you haven’t done so already, now is the time to start a daily journal that documents all of your trades, including the reasons for taking risk, as well as the holding periods and final profit or loss numbers. This diary of events and observations sets the foundation for a trading edge that will end your novice status and let you to take money out of the market on a consistent basis.

The Bottom Line

Start your trading journey with a deep education on the financial markets, and then read charts and watch price actions, building strategies based on your observations. Test these strategies with paper trading, while analyzing results and making continuous adjustments. Then complete the first leg of your journey with monetary risk that forces you to address trade management and market psychology issues.

Best Binary Options Brokers 2020:

    Best Binary Options Broker 2020!
    Ideal for beginners!
    Free Demo Account + Free Trading Education!
    Get a Sign-up Bonus:


    2nd place in the ranking!

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