Learning to trade for beginners: 5 steps for an optimal start

Through our many years of experience with trading beginners, we now know exactly which steps need to be taken in order to become a successful trader at the end of the journey. Ultimately, it's the five steps that we'll introduce you to in this blog post. Of course, these may vary a little, but in general, you have to take these five steps to get closer to your goal.

Here in this blog post, you'll get valuable information about the first two steps, which are also the most important steps. Because if you take these steps directly, you will have great difficulties reaching your goal in the end.

What steps are necessary to become a successful trader

Learning the basics
Learning a trading strategy
Backtesting and customization of this strategy to meet personal needs
Demo trading
Live Trading / Real money trading

1. Basics for beginners

For every beginner, it is important to understand what the stock market is all about. The curated videos from our YouTube channel. Subscribe to not miss any) will help you with this.

Before I list the videos in their respective categories, I would like to describe the abstract goal of trading. The products traded on the stock exchanges, such as stocks or currencies, are subject to price fluctuations. With increasing understanding of these movements, we can later identify certain patterns that repeat in the market. Based on this, the whole thing can be statistically evaluated and checked whether the peculiarity can be profitable for us in the future or not. These so-called niches in the market are what we are looking for and later trade as profitable traders on a consistent basis.

Basically, we can make two different types of analysis on the stock market. On the one hand, there is fundamental analysis, and on the other hand, there is technical analysis. In advance: The best traders combine both types of analysis to find the best trades. Nevertheless, the technical picture must always be right. Therefore, it is usually sufficient for beginners to first acquire and learn the technical analysis. The fundamental perspective then comes almost automatically with the passage of time.

Charting Techniques / Technical Analysis

Absolute Basics

Support & Resistance

Price Action

Supply & Demand

Everything about Trends

2. Suitable Trading Strategy

It is not easy to find the right strategy. As mentioned in the overview video, it is important to distinguish between fixed and adaptable strategies. Fixed strategies often do not lead most traders to their goal because the rigid guidelines simply cannot be followed. Every trader has their own personal style and needs. So if you buy a fixed strategy from a provider, you have to align your life completely with this strategy.

We know that this is difficult to impossible. Therefore, it is better to acquire an adaptable system, where you learn that your needs come first. You determine when you have time for trading, which market interests you, etc. Furthermore, you learn how to adapt the concept to your desired process.

Our first choice for an adaptive system is the WMT Framework. With this adaptive system, you can do exactly that! The strategy is flexible and adaptable to your needs, it adapts to you and your life – not the other way around. The MTF system is one of the pillars of our WMT framework. The following videos give you an idea of why the Multi-Timeframe-System is so good:

If you are eager to learn more about this topic, I recommend our video. In this, we go into these five steps in more detail, which every successful trader must go through.