[Applause] [Music] welcome back to my channel guys so recently I've been getting a lot of damage about people wanting to get started in trading people have been DME DMing me and asking me hey how can I get started what is the proper steps where can I learn where do I open up a paper trading account what is a paper trading account and all these questions so now I'm making this video for anyone that's looking to get started in trading and has no idea where to start so I'm gonna go through a few steps with you
guys and actually explain on how to actually get over the learning curve so you guys probably saw stock-car before you've probably heard that stocks are very very complicated they're very hard but in reality they're really not it's just like anything else it looks hard at first but once you kind of get into it it becomes easier and easier and easier within time but you have to put in time and effort to actually get to that comfortability now starting out these are the steps you guys should take to become a confident and successful trader the first
thing you guys need to do is educate yourselves you have to properly educate yourselves to know the topic very well you have to understand things such as technical indicators price action and some things you guys can focus on and I'll just you know give it out give it out just so you guys have a better understanding you guys coming in moving averages exponential moving averages volume supporting resistance trend lines chart patterns candlestick patterns technical indicators such as our MACD RSI Austin Bonacci retracements things of these natures you guys can search out these topics and look
them up what's a great way to learn about these topics you guys can read books so I'm gonna post a link down below of a bunch of books that I recommend you guys can check them out and you guys can get started by reading these books now once you guys are done reading these books and you guys actually research these topics go online going investopedia and multiple websites and actually learn about these topics the second step you guys can do is actually go and open up something called a paper trading account so a paper trading
account is an account where you trade the real markets fake money so once again you're trading the real markets real market movements with fake money now the great thing about a paper trading account is you get to get a feel of the markets without investing real money without investing money where you're risking on losing money at this point cuz you have no idea what to do so that's the great benefit of a paper trading account cuz now look at it you're you're dabbling in the stock market you're not risking any money and you're learning at
the same time so that's the great thing about having a paper trading account one great platform for paper trading account is uh thinkorswim by TD Ameritrade I'm gonna put a link down below for that as well you guys can check that out you guys can play with the platform I personally think the platform is great and you guys can check it out for yourselves if you guys do want to start paper trading and once you guys are done paper trading you guys can actually convert over to a real account as well now something to keep
in mind when you guys are paper trading when you paper treat with thinkorswim I know it thinkorswim they start you off with the two hundred thousand dollar account right make sure your account is the same size as you would start with real money because if you start off with the two hundred thousand dollar account and you start out and then you you switch over to opening up a real account with five thousand or two thousand guess what there's a huge difference in risk management there's a huge difference of strategies there's a huge difference in the
stocks you're touching and things of that nature so you want to make sure when you open up the paper trading account your account is actually to the same amount of money you're actually gonna invest so take the two hundred thousand dollars that think we're I think room gets you and change it to two or three thousand or whatever you're going to start off with just so you're kind of playing with the same numbers and you're comparing apples to apples when you do start with the real account now once you do have the paper trading account
going on I personally recommend that you guys start practicing for at least one to two months so all the paper trading account practice for one to two months get comfortable with price movements get comfortable with stocks get comfortable and using the platform get comfortable and seeing how the markets moving how news affect the market how news is affecting your stock and getting familiar with things like that and the best way to get familiar with that is by having per experience and to have experience is to trade and to trade without risking any real capital is
by having a paper trading account now at this point you've educated yourself you opened up a paper trading account and you've given yourself about a month to two months depending on how much time you need or how much effort you're putting in now after that's done and throughout that period the third step you guys should do is have a trading plan a trading plan is very very very very crucial in you becoming a successful trader this is a huge thing and a huge way many traders actually fail they actually don't do well if they don't
have a trading plan so in your trading plan the first thing you guys should have is risk management you have to have a solid risk management strategy I'm gonna make a risk management video as well with position sizing but that's something you guys can look up and try to understand if not I will make a video on that soon in your trading plan once again have a solid risk a risk management have position sizing along with that you guys have to have solid entry and exit points for each and every single play you make for
example whenever you get into trade you have to know where you're entering you have to have a stop loss very very very important anytime you get into trade make sure you have a stop loss once you have a stop loss you also have to understand how much room does the stock potentially have to run can I go up to six can I go up to seven oh is the stock at five dollars and forty cents is it fighting resistance at five fifty things of that nature you have to fully understand and once you guys start
trading more you guys are gonna see what I mean so once again at this point you've educated yourself you've read books you saw youtube videos next step is you opening up a paper trading account you've given yourself one to two months on a paper trading account you've gotten very comfortable you owe you you've set up a trading plan the trading plan you've applied it on your paper trading account now you're ready to open up a real account final step you go out you go open up a real account now once you do open up in
the real account how much money should one start with me personally I recommend starting with if you're opening up TD Ameritrade for example start off with twenty five hundred or started for 3,000 3,000 because I know currently they're giving out a promotion that if you put in three thousand dollars they give you free trades 260 days and you get a margin account so if you have a margin account you don't have to wait three business days for your you know for your money to settle if you have a cash account you guys have to wait
three business days for your money to settle which is why if you guys open up an account over twenty five hundred you don't have to wait three days for your money to settle now it's time for you to open up a real town now the question is how much should I put in now when you first start up my personal advice is to start out small put in maybe one or two thousand dollars into the market and work with that okay you're not gonna make a lot of money I'm gonna put that right there if
you start off with one to two thousand dollars you're not gonna turn that one to two thousand into a million or 100 K or two hundred K very very very very tough for you to do that unless you're playing with some crazy stocks and you know you're just something you want to avoid completely you don't want to think like that alright so when you start off with one or two thousand dollars the purpose at this point is for you to educate yourself with real money because when you paper trade it's completely different than real money
the reason for that is when you have real money in the market there's more emotional involved and I'm pretty sure you guys heard trading is 80% psychology and 20% technical indicators and skill sets so with that being said the only way you're gonna learn those psychological aspects the only way you're gonna learn how you get emotional if you get greedy if you get fearful is by you having real money when you have a paper trading account you're not going to feel any of that you're not gonna feel any emotions you're not gonna really care about
getting up in the morning seeing if your stock is up or down because it's not real money if you make money you're not gonna care if you lose money you're not really gonna care because you're not gonna feel it with the paper trading account with the real account you are going to feel it you were going to feel your wins you're gonna feel your losses and you're gonna get a better understanding of how much emotions actually take a play in your trading which is why when you start out with real money do not start out
with a lot of money and that's where a lot of people messed up they start out with so much money they take big hits and they quit if you start up one to two thousand dollars and you're not really putting all your money into one trade you're putting in five hundred six hundred dollars into a trade you're now still in the learning process right you're still learning you're learning about your you're learning about you know actually playing with real money and how it's so much different than paper tuning account so once you get to that
stage right and you are profitable for let's say a month or two that's when you should add more money now how much more money should you add that's on you depending on your finances and things of that nature and how much money you can actually put into the market and not really worry about okay if you're putting money into market it should be money you don't you know you're not worrying about if you're putting in money and you have to pay rent next month or something do not do that make sure it's money you not
really worried about and you can actually put it into the market and everything else is covered now very very important thing very important thing that I want to mention everyone trading is something that takes a lot of time you are not going to start trading and make a huge amount of money right away it's gonna take a lot of time where people mess up is they start trading and they think they're gonna make this enormous amount of money in a month in a week in two months it's not going to happen this is a game
that's going to take a lot of time for some people it takes a few months some people even takes years for them to be very comfortable so when you're starting out have the mindset understand that this is going to take time this is not going to happen overnight it's a game of constant learning and improving as you start out put yourself in that situation of you're constantly learning and improving don't think about money for the next six months if you start out tomorrow with all with educating yourself and opening up a paper trading account don't
think about earning a dollar from the market at least for six months six months do not think about it don't even if you make money don't take it out for six months just focus on working on your trades focus on improving and with that being said you guys will be at a pace on becoming very good traders I promise you but you have to put in time and you have to be very patient with it you can't quit after a month of not seeing results or four weeks or eight weeks or ten weeks 12 weeks
you have to constantly keep improving and constantly keep going that's what I personally think on on how people should approach the market when they are starting out I'm gonna put all the info down in the link down below if you guys have any questions or want me to talk about any other topic or you know want to ask me any sort of questions you can DME mincer down below or you guys can comment and I'll speak about that topic and I'll see you guys next time thank you so much for watching
