Introduction : A Clear Routine
As a beginner trader, you need a clear daily routine.
You need clarity because you lack the time and energy required to fine pick stocks or other assets.
Wherever you plan to day or swing trade in the long run, training daily is essential as a beginner.
You want to be able to make 2 trades a day using 1 or 2 simulators for 3 to 4 months.
Here's a daily routine you can follow starting tomorrow :
It is planned for 7.30 to 9.30, as you will generally need 2 hours a day to accommodate to the trades rhythm, feel free to adjust.
Other common timeframes used are 5.30 to 7.30 and 18.00 to 20.00.
Also, this procedure has been designed for American and European markets.
It should be transposable simply since it is made to be universal.
Still, pay attention to the specifics of the company you are trading regarding its locality, especially if it has existed for less than 5 years.
1) Learn about Fundamental & Technical Analysis
A) Learn to use your Broker Platform
You start your day with your Broker Platform.
Even if you are meant to know them fast, always look for new Shortcuts & Interface features which would increase ergonomics.
As a beginner your goal is clarity, so simplify your interface and routine.
Trade at higher volume, with and with higher capital to learn faster - If you have 100$ of real money, trade with 1000$ of simulated money.
It will help you to make more trades and learn faster.
You can start with TradeStation, eToro or Interactive Brokers.
B) Open your Screener
Then open your Screener window to find stocks.
You will focus on 4 Indicators :
Our Ideal gain is 2 to 5$ per share. Meaning that if you buy for 7$ you want to sell for 9 to 13$ times your total volume.
2) Create a 4 Stocks watchlist : 4 Trade books for 4 Stock types
A) Finding the 4 Stock Examples
Find 4 high-growth stocks and trade 2 of them.
Look for breaking news and related stocks.
Breaking News affect stock growth, specifically their Price & Volume.
Then, classify these stocks into 4 Categories.
Finally, describe Why you lost or won money on the trade according to Fundamental indicators.
This procedure will allow you to define 4 stock profiles.
B) Creating 4 Trade books : Establishing the Rule from the Example
From these 4 profiles you will define 4 typical strategies.
You will then revise them daily, to define how much the trade should be adjusted.
Start with Fundamental indicators even if you are a day trader.
It will help you to identify Breaking News.
These news generally concern 5 types of events :
You can write a list of keywords related to breaking news by using past occupancies and identify patterns or cycles.
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Then, perform a Technical Analysis of the stock by focusing on 2 main Indicators
for your Price Action strategy.
3) How to Buy & Sell : Volume & Volume-Weighted Average Price
As a beginner you will focus on 2 main Indicators : Volume & Volume-weighted average price.
A) Entries using Volume & Volume-weighted average price : Under
Enter your trade when the price goes Under the Volume-weighted average price.
This indicates that the price can increase even further.
As said before, look for a High relative volume (2-5x) in order to maximize the chances of mass buying.
I recommend that your start buying with a marketable limit Order, even if you do not need to formalize it in your simulator.
The Goal is to take profit on the ask - You make a profit when you Buy, when you enter the trade.
Define an alert at last resistance level to target your minimal profit.
B) Exits using Volume & Volume-weighted average price : Over
Exit your trade when the price goes Over the Volume-weighted average price.
This indicates that the price can decrease even further.
Try to sell on a green candlestick to avoid weakening your position.
Always try to sell at a higher price.
As a beginner, always prioritize small profits.
C) 2 Thresholds
Even if you are Day Trading, define a stop loss before placing your order.
As a day trader, you do not need to place the stop loss formally.
In fact, it may be advisable to not place it : just define it.
It is considered reasonable to risk 1 to 3% of your Capital per trade.
ex : If your capital is 500$, use between 5 and 15$ per trade.
Therefore, define your Stop Loss using VWAP & Volume between these 2 Thresholds.
After each more update Stop Loss to, at least, break even.
This will be more useful for Swing Trading as you are not continuously controlling the trade in direct.
4) Post about what you learned today
A) Share on at least 2 Platforms
Share and comment screenshots of your daily trades.
I recommended to post them on your Website & on LinkedIn groups.
Try to post at least 1 trade per platform.
B) Ask 10 questions a day
End your day by reading posts and articles.
Then, comment under these if you can contribute, and ask questions about stock picking and how to place orders.
Once you made this a habit, ask questions on Indicators, Routines, Velocity and preferred Investment vessels outside of Stocks.
These questions will allow you to find people more experienced than you as well as potential trade partners.
Ideally, look for people who have at least 3 years of profit and thrice the daily profit your targeting.
Conclusion : Start Small, Start Now
The goal of this article is to give you the clarity and confidence to start now.
Even if you cannot dedicate 2 full hours a day to this, practice daily.
Once you've practiced this routine for a month get onto more groups.
Look for traders with similar objectives and affinity to progress faster.
