Where do I start if I am a brand new trader?

It is imperative that you get educated before you risk your hard-earned money in the market. You have to learn before you earn. This blog will teach you everything about the stock market and trading to get you started. It will cover the foundational knowledge you need before placing a trade in the markets!

The videos will go in order from basic to advanced. You’ll learn:

-Stock Market Basics

-The Different Styles of Stock Trading

-Intro to Technical Analysis (Language of the markets)

-Best Charting Software

-One of Our Favorite Day Trading Strategies

Take time to watch these videos at your own pace. They are not long, only 10-15 minutes each:

Complete Introduction to the Stock Market

What is the stock market? How do you buy and sell stocks? How does the stock market generate wealth for investors? All of the stock market basic questions will be answered:

Different Styles of Stock Trading

There are many different styles of investing and trading. Day trading. Swing trading. Long-term investing. This lesson will explain the differences, and how to choose the best style for you:

Intro to Technical Analysis & Trading Indicators

Technical analysis is the language of the markets. It is the most important analysis you need for all your trading decision making:

Best Charting Software for Active Traders

Now that you have a basic understanding of the stock market, it’s time to discuss what software and tools you need to succeed. Charting software is one of the most important tools of a trader. Learn the best free and paid trading software to use:

One of Our Favorite Trading Strategies

Every trade you take needs to be aligned with a strategy. Strategies and patterns create an edge for you in the markets. This is what separates trading from gambling. Check out the flag pattern, one of our go-to trading strategies:

While this information is great to get started, there is still a lot more to learn. Our day trading and swing trading communities have been around for 13 years. Taught by experienced traders, they are designed to provide all the support and mentorship you need to become a successful trader!

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Get an education. In some ways, trading is no different than any other profession. It takes 8 years to become a surgeon. They go through rigorous education and training before they ever even touch a scalpel. In trading, you will lose all of your money if you start buying and selling stocks before learning about the market and developing a system.  

 What most trading services fail to address (and traditional educational systems in general) is that people learn in different ways. Some people learn best through video courses. Some learn best through written material. And some people need a more interactive method of learning and need their questions answered by a real person. 

Our free trading kit does all of this. Our BOWS trading kit will teach you all the fundamentals of trading for all styles of learners.  It will offer more value than most trading services paid courses. Here is what our trading kit includes:

New and Improved Trader Handbook

Get a complete introduction to day trading and swing trading, trading terminology, basic strategies. Here is a peak of the contents of the trader handbook:

• The 6 Steps to Become a Profitable Trader
• Basic Trading Terminology
• Overview of Different Investing Styles
• Intro to Technical Analysis
• Intro to Charting
• Risk Management Guide
• Trading Psychology Guide
• How to Grow A Small Trading Account
• How to Use A Trade Journal
• Links to Our Best Blogs and Youtube videos

Intro to Trading Course

Our Intro to Trading course (taught by me!) will give you a complete breakdown of the stock market, and the basics of trading stocks. Here’s what the course will cover:

• Stock Market Essentials and the Basics
• Technical Analysis and Charting Walkthrough
• How to Read Stock Trades
• Flag Breakout Strategy Walkthrough

Free Trading Consultation

Some people just need to get their questions answered by a real person. We got you covered! You can book a free trading consultation with one of our educational specialists, and get every single one of your trading questions answered. We will help you figure out what style of trading is best suited for you, and layout a path for you to become a consistently profitable trader. 

Download the Bulls Trading Kit Here

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New traders often come into trading with unrealistic expectations in terms of profitability and success. Unfortunately, the instincts to succeed in trading are not natural for most people. You have to completely re-program yourself to instill the habits you need to become a winning trader. Knowing what obstacles you have to overcome and knowing how to overcome them.  

1.The Need For Instant Gratification

Instant gratification is becoming easier and more accessible every day. Smartphones give us the opportunity to be entertained and stimulated at a moment’s notice, no matter where we are. However, the need for instant gratification has made patience extremely scarce. Patience is the main difference between winning and losing traders.

New traders, when they get it into a stock expect it immediately to start going in their favor. The reality is that the biggest moves in the stock market rarely happen in a short period of time. Even when you are day trading volatile stocks, homerun trades will usually take hours to play out, which in today’s world feels like a lifetime. Jesse Livermore put it perfectly: “Money in the stock market is made by sitting, not trading”.   

2. Your Ego

Know one likes being wrong. It is in our nature to want to be right, and even avoid/ block out evidence that is pointing to contradictory evidence to our own beliefs. In order to become a consistently profitable trader, you have to master your ego and get used to being wrong. In trading, losing trades are inevitable. No strategy has a 100% win rate. When the market is telling you your thesis is wrong you have to listen, and take the loss.

If you cannot control your ego, one loss can wipe out weeks and even months of gains. If you get stubborn and do not size your positions correctly, your trading account can be blown up in minutes or hours. If you cannot keep your losses small, you will never be able to trade for a living. If stubbornness is a big issue in your trading, use hard stops to automate the process of taking losses.

3. Focusing On The Small Picture

It is easy for traders to get focused too much on intraday fluctuations in a stock’s price. When you look at 1-minute chart, it is easy to think the stock is in a major downtrend or uptrend when it is just a small pullback. You always have to be focusing on the bigger picture in trading. You always have to be focusing on the daily chart of the stock, even if you are day trading on the 5 minute time frame.

Traders will have a similar issue when looking at their trading performance. In trading, is it easy to feel like you are a failure of a trader right after you had a red day. It is also easy to feel you are a trading god after you have a big green day. The reality is one day does not define your trading career (unless you get very stubborn and take a massive loss that decimates your account).

You have to focus on your weekly and monthly PNL, not what happens day by day. You cannot control when your niche trading setups will appear. Some weeks you will be trading a ton because your setups are everywhere. Some weeks there will be nothing to trade. It is up to you to capitalize on your setups when they appear and stay on the sidelines when there is no money to be made.   

4. Recency Bias  

This phenomenon is a big issue to many new traders. Recency bias is defined as “when people more prominently recall and emphasize recent events and observations than those in the near or distant past.” In trading, it is easy to have confidence after you put on a winning trade and pull the trigger as soon as your setup appears. However after you have just had a losing trade, it is easy to feel fear and hesitation taking a niche setup because you just had a losing trade on the same setup.

Assuming you’re trading a strategy with an edge, you cannot let the last trade affect how you treat the next one. Every trade is completely independent of each other. You cannot let the results of recent trades affect how you approach the next trade if you are trading with a profitable strategy. Constantly study your winning trades to continually remind yourself “my strategy works, and the only way I can be in the winning trades is to pull the trigger when my setup is there”.     

5. Fear-Based Decision Making

“Scared money don’t make no money”. In trading, this saying is quite accurate. Trading with too much fear will cause you to make decisions that will lose you money, and miss out on big opportunities. Fear will cause you to take profits too early, and stop out early before the market has indicated your trade thesis is invalid.

New traders will also get FOMO (fear of missing out) after they miss a big move in the markets, and then make a rash decision because they missed out on a big opportunity. Trading small will significantly reduce the amount of fear in your trading. Ideally, you are risking around 1% of your trading account at max per trade you take.

Trading small will keep you more focused on the signals the market is telling you, and less on your PNL and your money that is being risked. Learn more about how to size your trades in this article here. 

Join Our Live Trading Boot Camp!

Spots in our next live trading boot camp are almost gone. Learn the trading strategies we’ve been using in the markets for the past two decades. Class starts soon!

Click here to apply for our next Trading Boot Camp!

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