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Trading Tutorials – Trading Basics

Here you’ll find trading tutorials focused on trading basics. Articles are on preparation for trading, charting basics, market tendencies, managing expectations, statistics and controlling trades.

Trading Basics

  • Preparation

4 Common Questions From New Traders, Answered – Most new traders starting out have similar questions. While strategies and trading psychology are tackled at a later stage, new traders typically want to know: Can successful short-term trading actually be done? Can it provide a living/income? How long does it take to become profitable? And how does one get started? These questions are answered below.

Basic Trading Terms Every Trader Should Know – Basic lingo of the trader.

Day Trading Basics: The Bid / Ask Spread Explained – The Bid/Ask spread is how prices move, and affects what you pay for a stock, commodity or any asset.

5 Step Plan For Forex (or Other Market) Trading Success – A strategy alone won’t make you a better trader. Follow this 5 step plan, which focuses on effectively implementing your strategies, to create forex trading success.

Day Traders: How and Why to Use a Daily Stop Loss – Controlling daily losses is as important as controlling losses on each trade, here is how day traders can control their daily losses so a single day doesn’t ruin their weekly or monthly income.

Why Most Traders Lose Money and Why the Market Requires It – A very deep and thorough at the real reasons why most traders lose, and have to lose.

5 Beliefs You Must Accept to Improve Day Trading Performance – Day Trading is largely psychological. We look at how your beliefs shape your perceptions (what you see on the chart) and what beliefs you must accept to see the market clearly.

My 5 Step Daily Trading Routine For Success – A 5 step daily trading routine to make sure your trading day goes smoothly. Including what to do before and after the opening and closing bell.

Defining Factor Makes or Breaks Traders: The Trading Losing Streak – No one likes to talk about losing, but it happens. It is how you deal with it when it happens that will determine you success.

Trading Tips from Legendary Millionaire Trader – One of the market greats shares some insights with you.

Learn How to Make a Trading Plan – Without a plan, you’re gambling. Any business requires a well thought out plan, trading is no different. Here is how to prepare a plan for your trading.

The Trading Plan: What You Need to Know – Radio Interview – Traders Talk Live Radio interview on creating a trading plan – why traders need one and the process of developing a profitable one. Here’s the transcript.

Books that Have Had the Greatest Impact on My Life and Trading – Worthwhile reads

  • Charting Basics

How to Get the Most Out of FreeStockCharts.com When You Start Forex (or Stock) Trading – a great, free, real-time charting site you should know about.

  • Market Tendencies

Market movements are not totally random, although they may have elements of randomness, these trading tutorials focus on recurring price patterns that repeat over and over again through bull and bear markets.

Focus on ‘Middle Waves’ for High Probability Trades – A trend unfolds in stages, with the middle stage typically being easy to spot and the most lucrative. Here’s how to trade it. The entry technique and trade setup applies to other waves as well, not just the middle wave(s). For more examples and another way of “looking at it” see ABC Forex Trading Strategy – Video (can be used in other markets)–the trade trigger is quite similar except we are looking at the market and setups in a slightly different way, which may appeal to certain traders.

Elliott Wave Basics: Trading Impulsive and Corrective Waves – Even if you never delve further into Elliott Wave theory, the concept of impulsive and corrective waves will greatly aid your trading. These two types of waves create the overall market structure, and therefore being able to tell the difference between them is the difference between taking high probability trades or low probability trades.

Technical Analysis: Support and Resistance Basics – Support and resistance form the basis for many trading strategies and technical analysis methods. Here are support and resistance basics you need to know

  • Managing Expectations

Trading tutorials to help you establish your goals, understand common pitfalls and see what you can expect/what you’re up against.

What’s the Day Trading Success Rate? The Thorough Answer – We look at how many traders actually are successful, and provide the percentages for men and women who try. Stats are based on thousands of traders to tried to make a go of it at day trading firms across Canada and the US.

How Long Does It Take to Become a Successful Trader? The Thorough Answer – Here’s the thorough answer of how long it takes to become a successful trader, based on time invested, quality of practice, capital and overcoming adversity.

Trading Psychology – The 4 Stages of Trader Development – Four very broad stages you will go through as a traders; by understanding the stages you may be able to accelerate your progress and avoid common pitfalls.

  • Probability and Statistics

A basic understanding of how humans don’t properly assess probabilities can help your trading. These trading tutorials will help you see where you make errors in rational and probabilistic decision making.

Probabilities: What are the odds probabilities in trading are calculated wrong? Part 1 – Our minds are not cut out for determining probabilities, and we make many mistakes in trading because of it. Here is a look at some basic concepts which can dramatically increase your ability to make rational decisions.

Probabilities Part 2: Scoring the Probabilities in Trading – The second part to the article above.

7 Metrics to Analyze Your Trading System – How to assess your trading performance.

What is Trading Expectancy and How it Works – Master trading expectancy and you don’t even need to have more wins than losses to prosper.

  • Controlling Trades

Reducing the Risk of Catastrophic Trading Losses (It Happens! Are You at Risk?) – Your risk management strategy and/or stop loss orders won’t always be effective, resulting in way bigger losses than expected. See why and how you may be risking more than you think; see recent real world examples where loads of short-term traders got annihilated; then, see how to reduce the chances of it happening to you.

Proper Position Sizing – Are you trading the right size?

Where to Set Stop Loss When Trading: How to properly manage risk, along with a couple videos.

Video on Trading, Risk, Probabilities and Trade Management – A must watch.

Risk Spikes – Risk Management Mistakes That Ruin Traders – What a Risk Spike is, why it happens and how to control it.

How to Avoid Overtrading on Quiet Days – Some “distractions” if you tend to overtrade when bored.

  • Financial Humor

You Might Be a Day Trader If… – A funny video looking at how day traders may start to incorporate their trading practices into the real world.