Don’t be fooled by all the glitz and glamour of the high flying Wall Street jet setters you see in the media. Success in this business does not happen overnight. There’s a great deal of work that goes into being a good trader. This week, the Topstep coaches are here with some tips and resources to help you get started trading.
Funded Trader Shoutout
In the spirit of starting the year on a high note, this week’s shoutout goes to energy trader Paula W. who is crushing it right out of the gate. In the first two days of the year, Paula has booked a $10,000 winning day trading Natural Gas and a $7,000 winning day trading Crude Oil.
There has been a lot of opportunity in the Energy markets early this year, Crude Oil specifically. Coming off its biggest one-day gain since November and trading up to its highest level since last February, Crude Oil is chock full of volatility and opportunity right now. Our hats off to Paula for recognizing when the iron is hot and having the confidence to strike!
Understand The Market
Before you consider putting on your first trade, you will need to pick a market or group of markets to participate in. It’s never a good idea to fly blind when choosing a product to trade. There are many things to consider, such as contract size, liquidity, and trading hours. Pick the products that best fit your trading style and financial limitations. Try to think of trading as an extension of your lifestyle. Whether you like the big swings of the highly volatile Nasdaq futures or the slow and steady pace of Corn futures, there’s a product for everyone, so do some research on which market is the best one for you.
Don’t Trade Over Your Head
This isn’t a “get rich quick” scheme. If you think you’re going to double your money every week, well, the odds are against you, and there are plenty of statistics to back that up. It takes time and patience to achieve success as a trader. If you are getting started with $5K or $10K, you shouldn’t come out swinging like you have $1,000,000 in your trading account.
Start small. Get a good feel for the products you’re trading. When you have a few good trades under your belt, and you’ve built up enough confidence in your strategy, then you’ll be ready to increase your size.
Focus On The Process
Having a trading plan and stick to it. Your plan will eventually begin to evolve as you gain more experience. It’s inevitable that the more you trade, the more you will learn. If you can focus on making good decisions in the markets, then you’ll notice everything else will start to fall in line.
Learn how to take a loss. This is probably the most difficult and important part of the job. No one likes to admit when they’re wrong, it’s human nature. Spend some time working on ways to combat these natural tendencies. If you need some help with this, look no further than our own team of Performance Coaches. Topstep offers a wide range of coaching options, from one-on-one coaching sessions to AI coaching, to group coaching. We’re here to help you, so don’t hesitate to reach out with any questions.
Find Good Resources
If you’re new to trading and need some help figuring out where to start, there’s no better place to go than the source. The CME Group is the premier futures and options exchange on the planet, and their website is full of useful information and resources to get off on the right foot. If Forex is more your style, then take a look at Babypips. They have a great beginner’s guide to FX trading, and they’re also a very reliable source for news. Also, don’t ever discount the resources available to you online or at your local library. The financial markets have been around for quite some time, and there’s a lot of educational material out there waiting for you.