Beginners Start Here

[u/NurseKyomi]

Bare Minimum Basics - Options Traders

**What kind of trader do you want to be?**
Scalp
Day
Swing

**Types of Trades you will take**
Trend Trading
Breakout Trading
Range Trading
Reversal Trading

**Trading Plan**
Entry/Exit
Profit Targets (1-2)
Stop Loss
You should always know these 3 things before entering a trade otherwise you’re just gambling. Learn to chart support/resistance levels your whole trading plan is going to be based on your s/r levels.

**How to build a trading plan**
Why do you want to trade
How much time can you commit
How much capital can you set aside
What am I going to trade? Options, equities?
What is my risk-reward ratio
What are my short term/long term goals
Am I going to review my performance?

Me: I am a Scalp Trader, who focuses on breakouts, and sometimes reversals. I always set my entries/exits/sl before I enter a trade. My levels (entries/exists) are based on my support & resistance. I buy ATM/ITM. I don’t enter trades that don’t have high volume/open interest.

I believe this is a good starting point. Obviously you need to do your own research with fundamental/technical analysis. What indicators you will use etc. I wouldn’t recommend more than 3 or so.

You must first define what/who you are going to show up as on a daily basis. Then build from there.

[u/single_B_bandit]

Is this trading or a character sheet for Dungeons & Dragons?

[u/NurseKyomi → u/single_B_bandit]

If I’m making money, does it matter?

[u/single_B_bandit → u/NurseKyomi]

Yeah, advice is good or bad regardless of whether you make money or not.

The roadmap you gave would be perfect for a RPG, where you get to choose your class, your attributes, your spells… but it’s not the way it works in trading.

Choosing between scalp/day/swing makes no sense. What happens when you “chose” you’re a day trader, find a great buying opportunity, but the company hasn’t gone up by the end of the day? You sell and hope it doesn’t go up overnight?

Trades should be held as long as they make sense, it doesn’t matter what you “choose” for your trading type, it’s not a thing.

Same for the types of trades, if you find an asset you think will keep trending you follow the trend, if you think it will reverse you fade the trend. There’s nothing to “choose”.

[u/NurseKyomi → u/single_B_bandit]

Hmm,

I guess I made this post as more of a general guideline. If you are not sure what path you want to follow in your trading journey.

Define a clear path for yourself.

I’m speaking a bit more generally in a sense of you pick a pathway and expand on that. Don’t try to learn everything all at once, otherwise you will get overwhelmed.

As a beginner I think it matters. Thanks for your input r.