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Trading Starter Pack-3

This document provides steps and information for starting a journey in trading. It outlines a 10-step process for getting started that includes education, choosing a market and broker, developing a trading plan, practicing with a demo account, implementing risk management, and continuously learning. It also defines important trading terminology and compares different trading styles like scalp, day, swing and position trading based on time commitment, suitability and timeframes used. Finally, it includes a template for developing a trading plan.

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pssylla17
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0% found this document useful (0 votes)
448 views15 pages

Trading Starter Pack-3

This document provides steps and information for starting a journey in trading. It outlines a 10-step process for getting started that includes education, choosing a market and broker, developing a trading plan, practicing with a demo account, implementing risk management, and continuously learning. It also defines important trading terminology and compares different trading styles like scalp, day, swing and position trading based on time commitment, suitability and timeframes used. Finally, it includes a template for developing a trading plan.

Uploaded by

pssylla17
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
You are on page 1/ 15

📈💰

BEGIN YOUR JOURNEY WITH THE

TRADING
STARTER KIT

FINANCIAL HIDEOUT
Follow @FinancialHideout FinancialHideout.com

BEFORE YOU START I HAVE 1 SMALL ASK..


IT'LL COST YOU $0 AND TAKE YOU LESS
THAN 30 SECONDS.

MAKE SURE YOUR FOLLOWING THE BEST


PAGE FOR TRADING EDUCATION

SCAN
HERE TO
FOLLOW

IF YOU‘RE ALREADY FOLLOWING, AWESOME


SHARE THE PROFILE WITH THE FIRST FRIEND
THAT COMES TO MIND.

LET'S HELP EACH OTHER GROW.


Follow @FinancialHideout FinancialHideout.com

ANSWERING THE BURNING QUESTION...

HOW TO START TRADING?


Step 1: Education and Research
Learn the basics of trading: Understand key concepts like trend identification, market
structure, support & resistance, types of markets, and asset classes.
Research various trading strategies and decide which suits your goals and risk tolerance.
Step 2: Choose Your Market
Determine the financial market you want to trade in, such as stocks, forex, commodities, or
cryptocurrencies.
Step 3: Select a Reliable Broker
Find a reputable broker that offers access to your chosen market (Check my story
highlights for a list).
Ensure the broker is regulated and offers competitive fees.
Step 4: Develop a Trading Plan
Create a detailed trading plan that includes your goals, risk management strategy, and
trading schedule, I’ve got a free template in this guide be sure to use it. I’ve also included a
strategy at end you can get to work on today.
Define your entry and exit criteria for trades.
Step 5: Practice with a Demo Account
Most brokers offer demo accounts for practice. Use this to test your strategies and become
familiar with the trading platform.
Step 6: Set Up a Trading Account
Open a trading account with your chosen broker.
Verify your identity and deposit your initial trading capital.
Step 7: Risk Management
Implement proper risk management techniques, such as setting stop-loss orders.
Never risk more than you can afford to lose on a single trade.
Step 8: Start Trading
Begin with small positions to get comfortable with real trading.
Record your trades in a trading journal for analysis.
Step 9: Continuous Learning
Keep learning and improving your trading skills.
Stay updated with market news and analysis.
Step 10: Adapt and Evolve
Review your trading plan regularly and adjust it based on your experience and changing
market conditions. I’ll include a section in this of what to journal.

Remember, trading can be risky, and it's essential to approach it with a disciplined and
informed mindset. Be patient, don’t rush it and be prepared to learn from both successes
and failures.
Follow @FinancialHideout FinancialHideout.com

MUST KNOW TRADING


TERMINOLOGY

1. Long: Buying an asset with the expectation that its price will rise.
2. Short: Selling an asset with the expectation that its price will fall.
3. Bull Market: A rising market characterised by optimism and increasing
prices.
4. Bear Market: A falling market characterised by pessimism and declining
prices.
5. Stop Loss: An order to sell an asset if its price reaches a specified level to
limit potential losses.
6. Take Profit: An order to sell an asset if its price reaches a specified level
to secure profits.
7. Volatility: The degree of price fluctuation in a market.
8. Candlestick: A visual representation of price movements in a specific
time frame.
9. Trend: The direction in which an asset's price is moving.
10. Support: A price level at which demand is expected to prevent further
decline.
11. Resistance: A price level at which supply is expected to halt further
increases.
12. Margin: Borrowed funds to leverage trading positions.
13. Leverage: Using borrowed capital to increase the size of a trading
position.
14. Broker: A financial intermediary that facilitates trading on various
markets.
15. Liquidity: The ease of buying or selling an asset without affecting its
price.
16. Day Trading: Buying and selling assets within the same trading day.
17. Swing Trading: Holding positions for several days to weeks to capture
price swings.
18. Position Trading: Holding positions for extended periods, often months
to years.
19. Technical Analysis: Analyzing historical price data to predict future
price movements.
20. Fundamental Analysis: Evaluating an asset's intrinsic value based on
financial data and economic factors.
Follow @FinancialHideout FinancialHideout.com

PICK THE ONE YOU ALIGN WITH


Are you skilled at making split-second decisions and comfortable with high-
pressure trading? Scalp trading could be your calling. It's perfect for those
Scalp Trader
who are at ease with short, intense trades lasting seconds to minutes.

Are you a quick decision-maker who enjoys fast-paced action? Day trading
might be for you. It's ideal for individuals who thrive in high-pressure
Day Trader
situations, make rapid choices, and relish frequent trading throughout the
day.

Do you prefer a more relaxed trading approach and have the patience to
wait for trades to develop over days to weeks? If you're anxious and value a
Swing Trader
calmer pace, swing trading may suit you. It's a great choice for those who
can handle longer timeframes and larger price swings.

Are you laid-back and comfortable with holding positions for weeks to
months? Position trading could be your perfect fit. It's designed for
Position
individuals who can manage significant price fluctuations and focus on
Trader long-term market trends.

GENERAL REQUIRMENTS

Scalp Trader Day Trader Swing Trader Position


Trader
High time commitment. Moderate time commitment Moderate time commitment Low time commitment
Undivided attention Requires focus during trading Allows for analysis outside of Analysis can be done at a
Not suitable for those with a hours market hours leisurely pace
full-time job Can be done alongside a part- Suitable for those with a full- Ideal for those with busy
Requires a well-capitalized time job with flexibility time job schedules or full-time jobs
account due to frequent trading High-speed internet Proficiency in trend analysis + Long-term fundamental analysis
Advanced knowledge of connection for real-time data chart pattern recognition skills
technical indicators and quick Strong risk management skills Patience to withstand The ability to hold positions for
decision-making skills. to handle intraday volatility occasional price swings. extended market fluctuations

TIMEFRAMES USED

Scalp Trader Seconds -> Minutes

Day Trader Minutes -> Hourly

Swing Trader Hourly -> Daily

Position Daily -> Monthly


Trader
Follow @FinancialHideout FinancialHideout.com

Trading PLAN TEMPLATE


Trading Date: ____________ Asset: ____________ Timeframe: ___________
1. Trade Setup and Entry Criteria
Market Analysis:
Describe your analysis of the market conditions.
Identify the trend and potential support/resistance levels.
Explain the reasons for this trade setup.

Entry Signal:
Specify the exact conditions or signals that must be met for entry.
Include technical indicators, chart patterns, or other criteria.
2. Position Sizing and Risk Management
Position Size:
Determine the position size based on your risk tolerance and distance to the stop-loss.
Use the following formula: Position Size = (Account Equity × Risk Percentage) /
(Distance to Stop-Loss in Pips)
Set the maximum risk per trade as a percentage of your trading capital (usually 1-2%).
Stop-Loss Order:
Specify the stop-loss level based on your analysis.
Explain the rationale for this stop-loss placement.
Ensure that the stop-loss aligns with your risk tolerance.
Take Profit and Targets:
Define the take profit level and any potential intermediate targets.
Consider the risk-to-reward ratio for this trade.
3. Trading Rules and Strategy
Trading Strategy:
Describe your overall trading strategy, including your trading style (e.g., day trading,
swing trading) and preferred instruments.
Explain your strategy's principles and approach.
Risk-Reward Ratio:
Maintain a risk-to-reward ratio that aligns with your trading plan and objectives.
Specify the minimum acceptable risk-to-reward ratio for each trade.
4. Trade Management
Monitoring:
Regularly review the trade to ensure it remains aligned with your analysis.
Consider adjustments if market conditions change.
Emotional Discipline:
Commit to maintaining emotional control during the trade.
Avoid impulsive decisions based on fear or greed.
5. Review Process
Trade Journal:
Record the details of this trade in your trading journal.
Include your entry and exit points, emotions, and thoughts during the trade.
Performance Review:
After the trade is complete, review its results.
Assess your decision-making and adherence to the trading plan.
Identify areas for improvement and learning opportunities.
Follow @FinancialHideout FinancialHideout.com

CANDLESTICK PATTERNS
BEARISH CANDLESTICK BULLISH CANDLESTICK

High price High price


Open price Close price

Close price Open price


Low price Low price
@FinancialHideout

BULLISH REVERSALS
THREE WHITE INVERTED HAMMER HAMMER PIERCING LINE
SOLDIERS

50%
@FinancialHideout

THE MORNING STAR BULLISH ENGULFING RISING THREE BULLISH GAP

(CONTINUATION) (CONTINUATION)

BEARISH REVERSALS
@FinancialHideout

HANGING MAN SHOOTING STAR BEARISH ENGULFING EVENING STAR

THREE BLACK CROWS BEARISH HARAMI FALLING THREE BEARISH GAP

(CONTINUATION) (CONTINUATION)
Follow @FinancialHideout FinancialHideout.com

MARKET STRUCTURE
UPTRENDS

Higher highs

Higher lows

Uptrends = Price making higher highs and higher lows, indicating an increase in buying
pressure and positive market sentiment.

DOWNTRENDS
Lower highs

Lower lows

Downtrends = Price making lower highs and lower lows, indicating a rise in selling pressure
and negative market sentiment.

SIDEWAYS TRENDS
Equal highs

Price
Range

Equal lows
Sideways Trends = Price moving between equal highs & lows, indicating a balance between
buying and selling pressure.
Follow @FinancialHideout FinancialHideout.com

SUPPORT & RESISTANCE


(SUPPLY & DEMAND)

Resistance

Resistance

Support

Support

Price

Support = Price level where price stops declining, fueled by buyers.


Resistance = Price level where prices stop rising, driven by sellers.
Where price flips Resistance -> Support or Price turns Support ->
Resistance, it's due to shifting market sentiment.

Resistance

Support

TRADING TIP:
Trade long at support & Sell short at resistance.
Set stop loss above the resistance line when shorting & below the support
line when longing.
Follow @FinancialHideout FinancialHideout.com

SUPPLY & DEMAND


(SUPPORT & RESISTANCE)

Excess supply
= downtrend
Excess demand
at a previous
level of supply

Supply = Price level where an excess of sellers enters the market, causing price
declines.
Demand = Price level where an excess of buyers enters the market, preventing
further price declines.
Excess in demand at a previous supply zone = Price rally (Breakout) to the upside.
Excess in supply at a demand zone = Sell off (breakdown) to the downside.

Longer upper wick Longer lower wick

Huge surplus of
sellers

Huge surplus of
Buyers

Long Wicks
Longer upper wicks signify supply zones, indicating areas where there was an
increase in selling pressure and, therefore, a higher amount of liquidity. This is
normally due to other traders taking profit by opening short trades and negative
sentiment

Longer lower wicks represent demand zones, showing areas of increased buying
pressure and higher liquidity. Normally due to other traders opening long trades,
short sellers closing their short trades and positive sentiment.
Follow @FinancialHideout FinancialHideout.com

DEFINED TRADE ENTRIES


Breakout Long Short
Retest

Retest

Option 1: Entry can be found at a break & Option 2: Entry can be found at a break & retest of the
close of candle above or below a trendline. trendline price broke out from.

CHART PATTERNS
BULLISH REVERSALS

@FinancialHideout

@FinancialHideout

BEARISH REVERSALS
@FinancialHideout
Follow @FinancialHideout FinancialHideout.com

TRADING STRATEGY TO GET


YOU STARTED
Step 1: Chart set up
Use the weekly timeframe to set up key levels of support + resistance.
Jump down into the daily timeframe to identify price patterns.

Step 2: Trade entries


Use the 4hr timeframe to determine entries into swing trade (for Longer
term)
Use anything lower to identify day trading oppertunites within the range of
the pattern.

Entry criteria = Breakouts or retests.


Intraday = Breaks of support and resistance within the range.
4hr = Breakouts from the chart patterns identified.

Step 3: Stop loss


Set this just below or above the breakout depending on which way your
trading the market.

Options:
Below past areas of support for long trades.
Above past areas of resistance when shorting.
The Last higher low before the breakout is also great for longs.
The last lower high before breakout is also great for shots.
🔑- Allow enough room for normal price fluctuations.

Step 4: Exits
Distance between the initial swing low + high extended over to the breakout.
Shorter term targets (intraday) can be found when price reaches the
support and resistance levels marked earlier.

Step 5: Track the results


Trade details, analysis and rationale, emotions, trade management,
outcome, lessons and improvements, trade statistics, screenshots/charts,
market conditions and any comments.
Follow @FinancialHideout FinancialHideout.com

5 STEPS TO GROW A
TRADING ACCOUNT

Step 1: Determine Account size


Initial Capital: Start with an amount you're comfortable with, such as
$100, $1000 or $10,000. (Only trade what you’re willing to lose.)

Step 2: Risk Management (1-2% Risk Per


Trade)
Risk Per Trade: Never risk more than 1-2% of your total trading capital
on a single trade. Eg For a $10,000 account, this means risking
$100-$200 per trade.

Step 3: Trade Entry + Exit Plan


Entry Criteria: Define clear entry points based on your chosen
strategy, whether it's a technical signal, a chart pattern or something
more fundamental.
Exit Criteria: Determine when to exit a trade, either through a
predetermined profit target or a trailing stop-loss.

Step 4: Progressive Profit Target


Start with a conservative profit target of 1% per trade when your
account is at its initial size.
Once your account has grown by 15%, increase your profit target to 1-
1.5% per trade.
When your account has expanded by 25%, raise your profit target to 1-
2% per trade.

Step 5: Always Learn and Review


Trading Journal: Maintain a trading journal to record every trade,
including entry/exit points, rationale, and results.
5 Trade Review: Every 5 trades assess your performance. Adjust your
strategy and risk management rules based on your results and
evolving market conditions.
Follow @FinancialHideout FinancialHideout.com

FREE GIFTS
If you screenshot this page and then go to the picture in camera and tap on the QR code
the link will open. If not go to this web adress to find the links:

free gift #1
To make your life 10X easier when it comes to getting your mind
right for trading I have created a basic trading journal you can
gain access to by scanning the QR code below.

In the journal you will find:


- Trading Rules
-A Trading Plan Template
-Trading Affirmations for Success
-Confidence Building Strategy
-A live trading journal you can use to track & test your trades

scan for gift

free gift #2
My second free gift to you is a link to my ‘Trading Psychology’
guide’ you can use to bullet proof your mindset right before your
next trade.

scan for gift

If that’s not enough follow @financialhideout I share actionable


trading tips on the daily.

Scan to follow

free gift
This ones a link to my wealth creation bundle
#3
scan for 1 more free gift
instructions for
the trading
journal
follow this QR code. Screen shot and click
it if you can’t scan.

Click these 3 dots

Duplicate the
page And use it
as your own

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