How to Trade Stocks Step by Step

 These are the four simple steps you can follow to achieve a successful trade: identify the environment, find a good entry, have an exit strategy, and be patient!

Before you go through those 4 steps, you need to open an account with a broker first and add money to the account. If you don't have any money to trade the stock market, consider asking your friends, family members for money, or try to get a loan to your local bank (Not Recommended).

We do not recommend getting a loan to trade stocks, and we do not take any loans to trade the stock market either. However, we suggest that you use a prop firm instead.

What is a prop firm?

A prop firm is a company that provides its traders with access to capital. The company provides traders capital that they can use to trade stocks, commodities, futures, derivatives, and currencies. You can have the chance to manage up to $200,000 in real funds. And you can get the money Right Now!

Lucky for you, we partner with a prop firm company that offering traders the chance to manage up to $200,000 in real funds. No time limits or hindering rules! They offer real capital and no time limits making their funded process one of the best on the market.

Simply fill out a sign-up form. Once you have completed the signup you will have instant access to your account. 

How to Trade Stocks Step by Step - The 4 Step Trading Strategy

1. Identify the environment.

The first step is to determine whether the environment is bullish or bearish. This is essential to help you pick the right direction for a favorable trade. For example, if the environment is bullish, a long position will perform better than a short. If the environment is bearish, a short position will perform better than a long.

You can use a higher time frame than the one you are trading on to determine the environment. For example, if you are trading on the 1-hour chart, you can check the 4 hours to identify the environment.

• The EMA 100 & EMA 200 can help you identify market trends on the 4 hour & daily charts. For example, when the EMA 100 crosses the EMA 200, this means there is a change in the trend. If the EMA 100 crosses to the upside, this indicates a bullish trend. If the EMA 100 crosses to the downside, this indicates a bearish trend.
• For shorter time frames such as 1 hour, you can use the EMA 25 & SMA 50. When the EMA 100 crosses to the upside, this indicates a bullish trend. When the EMA 25 crosses to the downside, this indicates a bearish trend.

 

 

 

2. Find a good entry

Finding a good entry is crucial to having a good trade. The better your entry, the more room for profit you have.

• You can find entries based on divergences.
• To find divergences, you can use Market Cipher’s Market Momentum Wave or MACD.
• There are two types of divergences: bullish divergence and bearish divergence. When there is a bullish divergence, you can enter a long. When there is a bearish divergence, you can enter a short.

 

 

3. Have an exit strategy

Having an exit plan is a very important component of your trading strategy. Knowing when to pull the trigger is probably one of the hardest things to determine as a trader.

Markets can get to you, and instead of making rational decisions, you end up making emotional ones. This is why having a plan beforehand and sticking to it is highly recommended. Don’t let a good trade turn into a bad one because you did not know when to take profits.

• You can determine when to take profit based on support and resistance levels (support & resistance scalping strategy). Once the price has hit certain levels, you know the market is bound to switch directions.
• You can also use Fibonacci Retracement levels.

 

4. Be patient & trust your indicators

Patience is a virtue! And when it comes to trading is one of the most important skills to have. Half of the job is waiting. Waiting, waiting, waiting… Waiting for the right entry, waiting for your trade to play out, waiting to pick a good exit.

• Once you have done your analysis and placed your bets, just wait. Measure the time you think it will take your trade to play out and wait.
• Trust your indicators, trust your knowledge and trust yourself.

 

Additional steps:

1. Have a good risk management strategy!
2. Have a trading journal!
3. If you don't have any money to trade the stock market, visit a pro firm company and manage up to $200,000 in real funds.

Simply fill out a sign-up form. Once you have completed the signup you will Get Funded with 200k today!

If you follow these steps alongside a good risk management strategy and journaling, you can be very successful!

Remember, trading is about patience, confidence, and risk management.

Also, remember to have fun & test out different strategies until you develop your own style.

I hope this information was useful :)

New to trading? Try crypto trading bots or copy trading.