How to learn Trading from Scratch

 

 

Learning the trading is a bit of a difficult task because there are so many fake course sellers. So, I will walk you through how beginners can learn trading from scratch.

 

Table of Contens

 

Understand the Fundamentals of Trading

To start trading, you must know basic chart patterns, candlesticks, ITM, OTM and DEEP ITM options. You can find YouTube videos and articles where you can learn them, and I have written articles on chart patterns and candlestick patterns.

 

Basic Understanding of Option Geeks

• DELTA
 
• THETA
 
• GAMMA
 
• VEGA
 
• RHO

 

As a beginner, I would not recommend starting from stock options because of the liquidity issue, I started with the index options, because if you aren't able to square off your position before expiry, especially if the strike price is an ITM option, then you will need to take physical delivery of the stocks, which is very expensive depending on the country you're from. I have written an article about physical delivery cheak that out.

 

Other than that, there are rules and regulations which you must know before entering trading, such as long-term gain, short-term gain, taxation and penalty.

 

Stick with your Setup, and Don't Go for too many Setups.

Stick with your strategy and stick with it and improve it. Always try to keep things simple. Otherwise, it will confuse you, and do not try to learn everything at the beginning,

For instance, the RSI Indicator, Moving Average, Technical Indicator, and Pivot Point etc,

But in the end, choose whatever you're compatible with and back-test in the live market

 

Have Lowest Expectations

Having low expectations is beneficial to survive in trading, and if you have high expectations, you will be disappointed in the future.

So, it is crucial to prefer slow and permanent growth. The people come with high expectations and lose their money in trading, and they consider trading as gambling.

 

Greater Money Management

Money management is a crucial part of trading. By any chance, if you made a profit from gambling, then you will wipe out your entire money because it requires resilience to survive in trading.

Always start with little capital and a single LOT SIZE. Once you become profitable, then you could gradually increase your risk capacity.

 

Believe in Risk to Reward

Technical analysis can give you entry to the trade, but risk to reward helps you to stick with the trade. Through the money you're spending for trading, which you could afford to lose, and it doesn't affect you even if you lose that money, this is how risk to reward works.

But the reward must be greater than your risk. The big players do not use stop loss, and they believe in risk to reward.

Try to Understand the Buyer and Seller Mindset

It is a kind of practical approach to understanding the market. For instance, the buying market is always slow, but selling happens fast because of panic scenarios, and you need to see the trading from this perspective also.

Observe the market where option sellers and buyers will scared.

 

Free Source to Learn Trading

You can learn trading from YouTube and Website articles. Get a knowledge of chart patterns, candlestick patterns and option geeks, then do paper trading for practice, which will give you an idea about option trading.

You can save time by taking paid courses, but it is tricky to find Genuine ones because the people on social media are frauds

 

Capital Required

It doesn't require too much capital to learn to trade, but once you get some resilience in the market, you will need capital because you can't just turn 100$ into 5000$. It is possible, but not everyone's cup of tea.