Ultimate Trading Beginner’s Guide: What You Must Learn First to Succeed
Table of Contents
Table of Contents
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What should we not do between trading and investing? Keeping this problem in mind, bullish run has given you a complete guide in today’s blog.
Introduction
Trading can be a great career but if you don't have good knowledge then it will remain just a gambling. In this guide, we will see step-by-step what a beginner should seek so that he can achieve long-term success. Whether you want to trade in stock market, forex, crypto, or commodities, this guide will make your trading foundation strong.
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1. Basic Overview of Trading
2. Market Types (Stock, Forex, Crypto, Commodities)
3. Essential Trading Terminologies
4. Types of Trading Strategies
5. Technical Analysis Basics
6. Fundamental Analysis Basics
7. Risk Management Strategies
8. Trading Psychology
9. Best Trading Tools & Platforms
10. How to make a trading plan
11. Common Beginner Mistakes
12.Conclusion
1. Basic Overview of Trading
The basic concept of trading is to buy at a low price and sell at a high price (long position) or sell at a high price and buy at a low price (short position).
What is the difference between trading and investing?
If you are looking for fast returns and short-term opportunities, then trading may be right for you.
2. Market Types (Stock, Forex, Crypto, Commodities)
1. Stock Market
Shares of companies are traded.
2. Forex Market
Currency pairs are traded (e.g., EUR/USD).
3. Crypto Market
Digital assets like Bitcoin, Ethereum are traded.
4. Commodities Market
Physical assets like Gold, Oil, Silver are traded.
You have to first decide which market is best according to your interest and capital.
3. Essential Trading Terminologies
Before starting trading, it is important to understand some important terms:
Bid & Ask Price – denotes the price difference between buyers and sellers.
Spread – Difference between bid and ask price.
Leverage – Opening a big trade by taking a loan from the broker.
Margin – Capital required to use leverage.
Stop-Loss Order – Setting an order at a predefined price to limit the loss.
Take-Profit Order – Setting an order at a predefined price to lock-in the profit.
4. Types of Trading Strategies
Every trader should have a strategy. Here are some common strategies:
1. Scalping – Short-term trades, hold for a few seconds to minutes.
2. Day Trading – Intraday trades, enter and exit on the same day.
3. Swing Trading – Multi-day trades, hold for a few days to weeks.
4. Position Trading – Long-term trades, hold for months or years.
Swing trading is best for beginners as it gives a balance between short-term and long-term.
5. Technical Analysis Basics
Key Concepts:
Support & Resistance – Price levels are where the market reacts.
Trend Lines – Market direction is defined.
Indicators & Oscillators:
Moving Averages (MA)
Relative Strength Index (RSI)
MACD (Moving Average Convergence Divergence)
Bollinger Bands
ChartPatterns:
Head & Shoulders
Double Top & Double Bottom
Flags & Pennants
Technical analysis is a must-have skill for beginners.
6. Fundamental Analysis Basics
Fundamental analysis analyzes the overall health and economic factors of the market.
Key Factors:
Company Earnings Reports (Stock Trading)
Interest Rates & Inflation (Forex Trading)
Regulatory News & Adoption (Crypto Trading)
Supply & Demand Trends (Commodities)
If you are a long-term trader, then it is important to understand fundamental analysis.
7. Risk Management Strategies
Risk Control Techniques:
1. Risk-Reward Ratio (RRR) – Maintain a ratio of 1:2 or 1:3.
2. Position Sizing – Adjust trade size according to capital.
3. Stop-Loss Placement – Always use predefined stop-loss.
4. Portfolio Diversification – Do not invest all capital in a single asset.
Trading without risk management is like gambling.
8. Trading Psychology
90% traders fail because their psychology is weak.
Common Psychological Biases:
Fear & Greed – Not being able to control emotions.
Overtrading – Taking too many trades without proper setup.
Confirmation Bias – Seek only that information which confirms your bias.
Discipline and emotional control are essential to become a successful trader.
9. Best Trading Tools & Platforms
Today trading software and tools play a big role in your success.
Popular Trading Platforms:
Meta Trader 4 & 5 (Forex, CFD)
MetaTrader 4
MetaTrader 5
Trading View (Technical Analysis)
Thinkorswim (Options Trading)
Binance (Crypto Trading)
Best Trading Tools:
Economic Calendar (Forex Factory)
Market News (Bloomberg, CNBC)
Position Size Calculator
10. How to make a trading plan
A structured trading plan makes you disciplined.
A Trading Plan Should Include:
1. Preferred Market & Timeframe
2. Trading Strategy (Entry & Exit Rules)
3. Risk Management Rules
4. Journaling & Performance Tracking
If you are trading without a plan, then you are just depending on luck.
11. Common Beginner Mistakes
Beginners mostly make these mistakes:
❌ Using No Stop-Loss
❌ Overleveraging
❌ Emotional Trading
❌ Get-Rich-Quick Mentality
❌ Not doing Market Research
If you avoid these mistakes, your chances of success will increase significantly.
Conclusion
Trading is a skill that develops with time and practice. If you understand technical analysis, fundamental analysis, risk management, and psychology and maintain discipline, you can be successful in trading.
Your next step should be to practice on a demo account and refine your strategy.
If you find this guide helpful, share it with your fellow traders and follow Bullish Run for new trading tips.
