I’m on sabbatical leave for around one year. I want to dedicate this year to learn trading.
For the past 1 year I’m learning price action and applying it on some trades in intraday (getting mixed results). YouTube, Books and blogs are the only sources I’m using currently.
What should be my strategy to use this 1 year effectively?
Should I take any paid course? If yes, then please suggest some courses…
Please give your inputs.
Have a great day.
Read “How to Make Money in Stocks”, a couple of times. It is one of the books that I keep revisiting and learning. This book will let you understand the basics right! Do not write it off as just another book.
Link - https://amzn.to/3gXggjp
Once you are done with the above, check out Mark Minerveni’s books and Mark Douglas’s books. There’s plenty of videos of them online as well from where you can learn.
Thanks for the suggestion.
I Will definitely read this book.
Hi @Zodiac ,
It is good to see new people approaching the markets with a structured thinking. This alone helps avoid the initial pitfalls.
Step 1: Get yoursel fa simulation account. This is absolutely important. Even on professional trading floors, sim accounts are considered critical before you get to trade big bucks.
Step 2: Look for guidance as you have already pointed out in your query. Just like any field of study, there are innumerable ways in which you can trade. You can liken it to a major or a specialization in a typical under-graduate/graduate course.
Step 3: Look for a course. You don’t want to be a doctor who has read random books and done an internship with a random doctor’s front desk and then expect to be a successful neurosurgeon. Point being, you will need guidance and structure both to help you propel and save you a lot of time that gets wasted in trying to understand what is what.
Identify what resonates with you and work towards amplifying those skills. Decide whether you want your core activity will be in stocks (cash), options, futures, etc and look for the right course that fits your needs.
Step 4: Keep working the sim account. If you treat this as sacrosanct then you will know when to move to a funded account.
Whatever you do just give 1 hour of each day for bar replay of any instrument you love be it in any timeframe at first and then OBSERVE when you do this 2-3 times in same time frame you will get all the secrets( there are no secrets ) that people are selling in name of education in our country and trust me its not the money that goes wasted its the faith that is lost when you try to learn Trading from Marketing Gurus
I totally agree with you.
One really need a good mentor in order to learn this in right way.
Thanks for your time and suggestions.
Yes. Giving one hour daily to charts really helpful.
The faster you know what you want in life on the basis of reality that much faster you can become successful. You may think what i am saying new here ? Market is a very complex place no matter what people say because i have spent 5 years in the market and i have been a day trader ,swing trader also an investor. Every trader has different approach, rules and different conditions to enter into a trade. If i say about myself if i am day trading then i cant use investing rule , if i am swing trading then i cant use day trading rules so be very clear what you want to become. for an investor buying the dip maybe the best entry but for a day trader, never enter a losing position those are totally different approach to same price action.
This line really resonates with me.
Thanks . Great Advice.
Some YT Channels that produce genuine content (might be boring and less flashy but actual knowledge):
- Rayner Teo - For beginners to learn PA.
- Trade with Trend (Raunak) - One of the most genuine people in this business. Uses simple PA concepts and releases a video every week to analyse current structure of broader market.
- Power of stocks - Another gem. But best for PA related to intraday trading.
These traders have 10-15 years of experience atleast (except Power of stocks(7-8 yrs)). Not newbies who give advice here after seeing half of a market cycle.
Initially start learning everything. Slowly you will be able to recognise what you prefer.
And my friend, basic always works!!
Its good that you asked. If you are asking this question before losing money, you are wise. Once warren buffet said ‘what the wise does in the beginning, the fool does it in the end’. So you should first understand markets. Dont take people seriously who are telling you about only technicals. They lose 4 days and win 1 lucky day and ends up in losses. They are driven by emotions and greed.
So, learn fundamentals of markets first. It includes financials of companies(learn what sort of finanxial metrics that drive up stocks in short and long term), things that effect thier business, outlook of markets, factors that effect markets, micro economics, macro economics, economic calendars.Economics and geopolitical events play key role. Remember, while you learn all those above, then you will understand what to trade and when to trade. Thats the key. And all these price actions may work when markets arent affected by external factors. For example times like this, many external factora are affecting markets such as war, inflation, interest rates, elections, outlook, contemporary world events …technicals doesnt seem to work in such times… So at this time, its better to not trade between these even, bcoz uncertainty is really high from last 1 month and 2. Bcoz sometimes you shouldnt trade to protect your capital during these times. In last 2 days ago we know how many lvereaged traders dragged thier portfolios down by 30 to 50 percent…1 day is enough to get you blow up account if you are into options unless you understand how markets work.
Im not expert but telling you wt i know so far.If you keep digging with interest, you will learn how to make decisions in market. Good luck.
You can take various online courses of trading and practice with a demo account as it does not involve real money. Once you know how to trade you can put your real money.
Getting back after a break can be challenging. Read, ‘ Bulls, Bears and Beasts’ by Santosh Pillai. It’s a great and detailed book. Very informative. Good luck and I hope you’re able to gain confidence back.