Getting Started with Trading

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If you’re a complete beginner who is looking into trading as a potential side job or fulltime career, you are in the right place.

Here at DojiDojo, we aim to provide helpful information and insights for all levels of traders, so that they can join us on this quest toward mastery in the financial markets. This guide will serve as a reference at different stages during your journey, regardless of which direction you ultimately take.

By the end of this guide, you will have a basic foundation to figure out whether trading is for you, and how to move forward.

Getting Started with Trading

What is trading?

Trading is the act of buying and selling financial assets, such as stocks, commodities, or currencies, in order to profit from price fluctuations. Traders use various strategies, techniques, and tools to decide when to buy or sell assets. 

But becoming a trader involves more than just buying and selling financial instruments; it’s about mastering a set of skills and adopting a mindset that allows for long-term success. At its core, successful trading demands several traits: discipline, patience, and steady risk management, to name a few.

Discipline ensures that traders stick to their strategies and plans, avoiding impulsive decisions driven by emotions.

Patience is crucial for waiting for the right opportunities and not forcing trades when the market isn’t favorable.

Risk management protects traders from significant losses, ensuring they can stay in the game for the long haul.

These traits, among others, form the foundation for consistent profitability. They are essential for any trader aiming to succeed in the markets.

Types of Markets

There are many types of markets: stocks, options, futures, forex, cryptocurrency, and more. To get a general familiarity with one or more markets, I highly recommend that you start by researching the asset class you’re interested in. Each market has its own characteristics and drivers, so a thorough understanding is crucial.

Here at DojiDojo, we have a primary focus on futures trading, but will occasionally add content relevant to other markets.

For the purpose of this guide, we will be referring to futures throughout, so if you’re not familiar with the futures markets, please read these two articles first:

Once you’re familiar with futures, you may be anxious to get started. But I advise against rushing into it, because of the increased risk due to the higher leverage. If this makes no sense to you, you need to read the previous article again.

In the next part, we will

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