Introduction
Trading can look complicated from the outside—charts, news, indicators, endless opinions. But it becomes much clearer once you answer one simple question:
What kind of trader are you—and what do you realistically need right now?
This guide is not built around hype or “quick money” promises. It’s built around a repeatable process:
- choose one market to focus on,
- practise safely on a demo account,
- learn the basics of MT5 execution,
- build a simple trading plan,
- manage risk with strict rules (not feelings),
- move to a live account gradually and responsibly.
Important note before you begin
This is educational content, not personalised financial advice and not a buy/sell recommendation. Trading—especially with leverage or CFDs—can lead to significant losses. That’s why this guide is heavy on risk management, discipline, and process.
Table of Contents
1) Self-Assessment: Is Trading Right for You? What Style Fits Your Time?
Answer honestly. This isn’t a test to “pass”—it’s a tool to avoid mismatched expectations.
Quick Quiz (4 areas)
A) How much time can you give daily?
- 10–30 minutes
- 30–90 minutes
- 90+ minutes
B) How do you handle losses?
- I get stressed quickly and might change decisions
- I can accept limited losses if they’re planned
- I stay calm and follow numbers regardless
C) Discipline (be honest)
- I often change my mind
- I usually follow rules, sometimes slip
- I follow rules consistently (or I’m committed to it)
D) Your realistic goal
- Fast profits
- A skill + gradual growth
- Understanding markets to make better decisions
Read your result (guidance)
- Mostly first options → start with longer demo practice, fewer trades, stronger discipline rules.
- Mostly second options → ideal beginner path: H1/H4 timeframes, fewer trades, strict risk rules.
- Mostly third options → you can progress faster, but still keep low risk + full journaling.
Time-based style guide (simple)
| Daily time | Best fit (beginner-friendly) | Why |
|---|---|---|
| 10–30 min | Swing-leaning (H4/D1) | Less noise, fewer decisions |
| 30–90 min | Light day trading (H1) | Balanced learning pace |
| 90+ min | Intraday (H1–M15 with discipline) | More opportunities, more temptation |
| All day | Scalping | Not recommended for beginners |
Key takeaway: Your success is more about fit + discipline than intelligence or a “secret strategy.”
2) Trading Basics for Beginners: Markets, Instruments, and What to Start With
What is trading?
Trading is attempting to profit from price movement over a shorter timeframe (minutes to weeks). You may trade:
- by owning an asset (common with stocks/investing), or
- via derivatives (like CFDs), depending on the product offered.
Common markets
- Forex (FX): currency pairs (EUR/USD, GBP/JPY, etc.)
- Stocks: company shares (or stock CFDs, depending on product)
- Commodities: gold, oil, silver, etc.
- Indices: baskets of stocks (e.g., major equity indices), often as derivatives
What should a beginner trade first?
Don’t start with “everything.” Start with one market + one instrument for 30 days.
Use these 3 criteria:
- Liquidity: easier execution, tighter pricing (often), fewer surprises
- Volatility: enough movement to learn, not so wild that it breaks discipline
- Followability: one instrument is easier to study and journal consistently
A practical beginner approach:
- Pick one of these: a major FX pair, gold, or a major index.
- Commit for 30 days on demo.
- Learn execution and risk before adding complexity.
3) Beginner Glossary: The Terms You’ll See Every Day
Below is the “platform language” you must understand before risking real money.
Price & execution terms
| Term | What it means in real life |
|---|---|
| Bid / Ask | You typically buy at Ask and sell at Bid |
| Spread | The difference between Ask and Bid (a core trading cost) |
| Slippage | Your order fills at a different price than expected (common in fast markets) |
| Volatility | How fast and how far price moves |
| Liquidity | How easily you can buy/sell without big price impact |
Account & leverage terms
| Term | What it means in real life |
|---|---|
| Leverage | Allows larger exposure with less capital—magnifies gains and losses |
| Margin | The portion of funds “reserved” to support your position |
| Free margin | What’s left to open new positions |
| Margin call / stop out | Broker risk controls if your account equity drops too far |
Trade management terms
| Term | What it means in real life |
|---|---|
| Stop Loss (SL) | A predefined exit to cap loss |
| Take Profit (TP) | A predefined exit to capture profit |
| Risk/Reward (R:R) | Potential reward compared to risk (e.g., 1:2) |
| Position size | How big your trade is (directly affects risk) |
Cost terms
| Term | What it means in real life |
|---|---|
| Swap / Rollover | Overnight financing cost/credit (varies by instrument/account) |
| Commission | A fee charged per trade on some accounts/instruments |
Key takeaway: If you don’t understand spread, leverage, SL/TP, and position size, you’re not ready to trade live.
4) The Demo Account: How to Practise Without Wasting Time
A demo account is not a game—it’s a training lab.
What demo is for
- Execution skills: opening, modifying, closing, pending orders
- Discipline: following rules even when emotions show up
- Risk management: fixed risk per trade, consistent position sizing
- Cost awareness: spread, commission, slippage, swap impact
Demo rules that prevent “fake confidence”
- Use a demo balance similar to what you plan to deposit live.
- List Item #3Use the same risk rule you’ll use live (e.g., 1% per trade).
- Limit trades: 1–2 per day as a beginner.
- Don’t change strategy daily. Test for 30 trades minimum before judging.
Key takeaway: Demo is successful when your process becomes consistent—not when your demo balance “looks good.”
5) Learn MT5 in One Week: Orders, Stop Loss, Take Profit, and Execution
MT5 (MetaTrader 5) is widely used. Your edge as a beginner comes from clean execution, not fancy indicators.
What you must be able to do on MT5
- Place a Market order (instant execution)
- Place a Pending order (Limit/Stop)
- Set Stop Loss and Take Profit
- Read basic account info: equity, margin, open positions, history
MT5 7-day plan (beginner-friendly)
Day 1 — Platform orientation
- Open demo
- Watchlist, chart, timeframe switching
- Open only 1–2 charts (avoid clutter)
Day 2 — Chart basics
- Candlesticks
- Mark simple support/resistance zones
- Save your template
Day 3 — Market orders + SL/TP
- Place small demo trades
- Practise setting SL/TP before entry (or immediately after)
Day 4 — Pending orders (anti-impulse skill)
- Buy Limit / Sell Limit (entries from better prices)
- Buy Stop / Sell Stop (breakout-style entries)
Day 5 — Understand costs in real time
- Watch spread widen/narrow at different times
- Note when execution feels “clean” vs “noisy”
Day 6 — Rules only day
- Max 2 trades
- Write the reason before you enter (one sentence)
Day 7 — Weekly review
- Identify your top 3 repeated mistakes
- Create 1 rule to prevent each mistake next week
Key takeaway: MT5 mastery for beginners = clean execution + cost awareness + SL discipline.
6) A Simple Trading Plan: Entry, Exit, and “What Makes a Good Trade”
A plan is not a vague idea. A plan is a checklist you can follow.
One-page trading plan template
1- Market/instrument (commit for 30 days): ______
2- Main timeframe: H1 or H4
3- Trend filter (how you define it): ______
4- Entry zone (support/resistance): ______
5- Entry trigger (one clear signal): ______
6- Stop Loss location + why: ______
7- Take Profit location + why: ______
8- Minimum R:R: 1:1.5 (preferably 1:2)
9- Max trades per day: 1–2
10- Stop rule: 2 losses in a row → stop for the day
What makes a “good trade” for a beginner?
A good trade is one where:
- you followed your rules,
- SL existed before or immediately at entry,
- risk was fixed (1–2% max),
- you didn’t chase price,
- you logged it properly.
Key takeaway: Judge yourself by process quality, not by one trade’s outcome.
7) Risk Management: The 1–2% Rule + Position Sizing Done Right
If you do only one thing right as a beginner, do this.
The 1–2% rule
Risk 1–2% of your account per trade maximum.
- This keeps you alive during losing streaks.
- It prevents one emotional moment from destroying your account.
Position sizing (correct concept)
-
Decide risk in money:
- Risk($) = Account Balance × Risk %
-
Choose your Stop Loss distance:
- SL distance depends on your setup (not your feelings)
-
Calculate position size:
- Position Size = Risk($) ÷ (SL distance × value per point/pip)
Important: Pip/point value varies by instrument, contract size, and account currency. Don’t memorise one number—use the platform calculator or broker specs.
Daily and weekly loss limits (to stop revenge trading)
- Daily loss limit: e.g., 2–3%, then stop
- Weekly loss limit: e.g., 5–6%, then review and reset
Key takeaway: Risk rules protect both your capital and your psychology.
8) Trading Costs: Spread, Swap, Commission, Slippage (and why they matter)
Even if your idea is correct, costs can turn a “good” trade into a loss.
Spread
- The built-in cost between Bid and Ask.
- Frequent trading increases spread impact.
Commission
- Some accounts charge a commission per trade.
- Lower spread + commission vs higher spread + no commission → compare total cost, not one line item.
Swap / overnight financing
- Holding positions overnight may add a cost or credit.
- It depends on the instrument and account terms.
Slippage
- Fills can differ from expected prices in fast markets.
- More likely during major news or low liquidity.
Key takeaway: Costs are part of your strategy. Ignore them and you’ll misread your performance.
9) Technical Analysis Without Complexity: Trend, Support/Resistance, Market Structure
You don’t need 10 indicators. Start with 3 pillars.
1) Trend (simple)
- Higher highs + higher lows → uptrend
- Lower highs + lower lows → downtrend
- Sideways range → consolidation
2) Support & resistance zones
Think in zones, not single lines.
- Support: area where price previously found buyers
- Resistance: area where price previously found sellers
3) One entry trigger (choose one)
- Clear rejection candle at a zone
- False break (fakeout)
- Clean bounce from a strong zone
Then match it with:
- SL beyond the zone (logical, not random)
- TP at the next logical zone or by R:R
Key takeaway: Consistency beats complexity.
10) News & Events for Beginners: What to watch and when to stay out
News can cause:
- sudden volatility,
- spread expansion,
- slippage
- unpredictable spikes.
A simple beginner rule
If you don’t have a tested “news trading” method:
- avoid opening new trades right before major high-impact events,
- don’t chase the first spike after news,
- focus on calmer periods to build discipline.
Key takeaway: You don’t need to trade every move. You need to trade well-defined moves.
11) Common Beginner Mistakes: Why they repeat—and how to stop them
The usual list (and the fix)
1- Going live too early → set a demo requirement (30–50 trades)
2- No written plan → use the one-page plan template
3- No Stop Loss → “no SL = no trade” rule
4- Overtrading → max trades per day rule
5- Revenge trading → daily loss limit + stop rule
6- Constant strategy switching → minimum 30-trade test before changing
7- Trading emotionally → checklist + journaling
Key takeaway: Most losses come from behavior, not market knowledge.
12) Checklists: Before Any Trade + Before Going Live
Pre-trade checklist
- Does this trade match my written plan?
- Is SL defined and placed logically?
- Is TP defined (or a clear exit rule)?
- Is R:R at least 1:1.5?
- Is risk ≤ 1–2%?
- Are costs reasonable right now (spread not unusually wide)?
- Am I calm (not chasing, not revenge trading)?
Before you deposit / go live checklist
- I understand leverage and product risks
- I know total costs (spread/commission/swap)
- I will start with a small amount I can afford to lose
- I have a written plan and daily/weekly limits
- I will keep a trading journal and review weekly
Key takeaway: Checklists turn “good intentions” into repeatable action.
13) When to Go Live: Clear Readiness Criteria + a safe transition plan
You’re closer to ready when:
- you completed 30–50 demo trades under the same rules,
- your rule-following is high (aim ~80%+),
- you have no revenge trading for 2 straight weeks,
- you can explain the reason for entry/exit on your last 10 trades in one sentence each.
A safe live transition
- Weeks 1–2: smallest size possible, goal = discipline, not profit
- Weeks 3–4: only consider small adjustments if discipline stays strong
- Month 2+: refine based on data (journal), not emotion
Key takeaway: Going live is not a “level up.” It’s the same process with real emotion—so go slowly.
14) Trading Journal Template + a Weekly Review Routine
Trading journal (copy and use)
| Date | Instrument | TF | Setup/Reason (1 sentence) | Entry | SL | TP | R:R | Risk % | Result (R) | Followed plan? | Notes (psychology/behavior) |
|---|
Weekly review (10 minutes)
- What mistake repeated most?
- What rule will prevent it next week?
- Best trade: why was it good (process)?
- Worst trade: which rule did you break?
- One improvement goal for next week only
Key takeaway: A journal converts experience into progress.
Quick answers to the most common beginner questions.