Home » Trading

Trading

Is this why I trade?

My name is Dave. I am a coder by day and trader by night.  On this site, I share my experience Trading Forex, Precious Metals, Crypto Currencies, and CFDs on Stocks, Indices and Commodities.

I have spent many years studying the markets, reading books on trading, doing back tests, and of course, trading itself. Finally, I am at the level that I make more money than I lose. So I feel confident I can share with you what I know on the subject.

Roadmap to becoming a consistently profitable trader

Looking back at my journey I realized I haven’t been doing things in the right order. So I have written down a roadmap to becoming a consistently profitable trader. I am happy to share it with you in the hope it will speed up your development as a trader (as well as mine).

Here is the roadmap:

  1. Know WHY you trade
  2. Learn to trade
  3. Develop a trading strategy and plan
  4. Backtest your strategy
  5. Practice
  6. Trade live and be consistent
  7. Become funded and scale up
  8. Invest
  9. Spend

Why Trade

Trading is hard. The most important thing you need to know, is WHY you want to trade. Otherwise you will give up. To read about why I trade and why I think you should too, you can read this post.

Learn to Trade

Becoming a trader is a process. And although some people have a natural ability to be successful in trading, most others do not have this.

I believe anyone can learn to trade the markets.

I have written a series of posts, that will help you to Learn To Trade. It will help you get started trading the way I do. I highly suggest you go through the articles in order. The first post can be found here.

If you rather have a printed version of the posts, then I have got you covered as well. I have created a free printable e-book. You can get the eBook version here. Or you can get a printed book here at a small cost.

I suggest you also check out my YouTube channel as I post educational content there as well.

Develop a Trading Strategy and Plan

Every trader needs a plan.

Plan your trade and trade your plan!

My Trading Plan can be found here. I hope it will show you that I actually trade according to a plan and that luck is a minimal factor in my trading. You can copy the plan and tweak it to make it your own.

Learn my trading setups as well.

Checkout my trading log here.

Backtest Your Trading Strategy

An important step in becoming a consistently profitable trader is that you not only develop a trading plan that fits your lifestyle and personality, but that you also thoroughly test the strategy on past data. This will help you become an expert in trading the strategy and you will build confidence in the validity of the strategy.

Get Free charting software from Tradingview to do backtests

I use Tradingview to do most of my chart analyses. I also use it to test new strategies by backtesting them using the replay function of Tradingview and by forward testing them using the paper trading feature.

Practice Your Trading Skills

After completing the above steps you are ready to practice what you have learned so far.

You can open an account at a broker and start practicing on a demo account.

Demo account are meanly good for practicing trade operations, like placing and managing trades. You can also use it to forward test new strategies.

Trade Live and be Consistent

Now it is time to fund a real account and practice trading very small position sizes. This is a big step as with real money on the line, however small amounts, you will be able to practice the mental aspects of trading as well as the technical and operational aspects.

I personally, started small and continue to scale the account by compounding profits and making regular additional deposits. This has made me slowly become more accustomed to larger trade sizes.

Checkout my selection of brokers if you are looking for a broker.

Scale up

One way to make money trading is to become a trader funded by a prop firm. A proprietary trading firm is a company that let’s you trade on their trading account. They have strict trading rules. As long as you don’t break their rules and make a profit, you will share in the profits. As these firms can offer large accounts the profit-splits can be sizable. However this will only work if you are a consistently profitable trader.

I will soon share my experience trading prop.

Invest

You can become financially secure and independent by trading. You do not need a boss to trade. However it is still active income. If you do not trade, you do not make any money.

In order to become not only financially secure and independent, but also financially free, I invest.

Spend

Remember your WHY!

My Trading Resources

Finally, here are links to most of the trading resources I provide on this site:

Trade With Me

Get access to my trading tools, resources, and ideas by Trading With Me on Gumroad.

Questions?

I have outlined some of the most useful resources I use for trading and investing myself. I hope it is helpful. Links on this site can be affiliate links. If you use them to open an account or buy something, then I might receive a commission. This is at no additional cost to you. If you have any questions about these resources or the site itself feel free to get in contact with me.

Here is a list of my general trading related posts, mostly focused on educating traders:

  • Risk And Why is R So Important to Understand? R in Trading is an objective way to think about success or failure in a trade. R expresses the (possible) return on a trade as a multiple of the risk taken on by that trade. In my trading log, I register the amount of R I […]
  • Where to place your take profit Ok, you see a nice trade opportunity. And you know where to place your stop loss. Now, how about the take profit order? Where do you place it? In this post, I will show you my approach to setting my initial take profit levels. This initial take profit level […]
  • Where to put your stop loss So I talked about “What is R in Trading” and why it is so important to understand. I hope I made clear that R lets you focus on and manage Risks by always setting a stop-loss order to take you out of a position automatically if things turn against […]
  • Why Trade? This post is the first in a series of posts I am writing to guide you in getting started trading. It is the start of my Free Investing and Trading For Beginners Course. You could skip this post and go straight to the next posts if you feel that the answer to the […]
  • Should You Only Trade With The Trend as a Beginner When you start trading for the first time, it is very tempting to take every trade that comes your way. It is much better, however, when you are just learning how to trade to only ever trade with the trend. Why you should trade with […]
  • How to Trade? – an overview of ways to trade In this post, I will give an overview of commonly used trading approaches. This is the second article in a series of articles I am writing to help anyone get started trading. If you haven’t read my first article in this series yet, then read […]
  • Wallstreet, New York, Home of the New York Stock Exchange (NYSE) In this article, I will discuss the possible securities you may consider for trading. After reading my previous posts you should have figured out why you want to get into trading in the first place and you have learned about ways to trade. Now […]
  • Tools of the trade In this article, I will tell you about the possible tools you have at your disposal for trading. Whether you are building a fence or building a trading strategy, you need tools to get the work done. In the previous articles, we already looked at the question of why, how, what […]
  • Find good trading Ideas This is article six of the getting started trading series. I have hopefully introduced you enough in the subject of trading and investing, that you can start to make some choices on how you would like to go about trading based upon what fits you, your personality and lifestyle. I could […]
  • A money-making machine? By asking what people want to learn from me, it became clear to me that I should continue the getting started trading series by showing how I trade myself and how I produced my trading results. I am talking about trading here, not investing. Investing can take a completely different approach from […]