Are you new to trading? Don’t worry.

Trading is not magic; it is a skill that you can learn easily and slowly day by day.

Just remember your childhood, we all were very stubborn to get a bicycle from our parents. After we got it, we fell many times, and over time, we learned slowly and got steady. Similarly, we struggle in the beginning, but once we understand the basics, we will become experts.

In this guide, I will explain the basics of trading. Let’s begin slowly and clearly.

What is trading?

Trading simply means you will buy at one price and sell at another price.

  • If you buy at a lower price and sell at a higher price, you make a profit.
  • If you buy at a higher price and sell at a lower price, you make a loss.

That’s it; these are the simple basics of trading. You can trade on the MCX platform. All we need to do is decide when to buy and when to sell smartly.

What is MCX?

MCX means Multi Commodity Exchange, in which you can trade the commodities like

  • Gold
  • Silver
  • Crude Oil
  • Natural Gas
  • Copper

In MCX, you are not buying real gold or silver; you are just going to trade the price movements.

  • If the gold price moves higher from where you bought, you can book profit.
  • If the gold price moves down from the price you bought, you lose money.

That is why learning trading basics is very important.

Which commodity is good for beginners?

Gold and silver commodities will be good for beginners, as both of these are easy to understand; the chart price movements will be smooth and highly tradable.

If you are a beginner, you can go with the Gold micro or Silver micro.

In the beginning you should start very small, and that will be the smarter option too.

How to check the chart?

When you open the chart, you can see the candles.

  • Use the 5-minute chart for better understanding.
  • You can see 2 colored candles, green and red.
  • A green candle means the prices went up.
  • A red candle means the price went down.

Initially, just see and understand the process and try to understand the candle directions.

Simple Rules

Simple rules for beginners is, wait for 2 green candles; this means buyers are active. You can think about buying after a few confirmations with no hurry.

When should you avoid buying?

Strictly do not buy at these points,

  • Prices already went very high and very fast.
  • When you see a very big candle
  • The candles are small and confusing.

It is better to wait before you buy in these cases; big moves often get rest at some point.

You should know that “waiting is also a part of trading.”

What is a stop loss, and why should you use it?

Stop loss protects your money in advance, like a helmet while you ride a bike.

Always place a stop loss when you are buying.

How much to trade?

  • As a beginner, trade only one micro contract.
  • Use small capital.
  • Don’t put all your money in one trade.
  • Don’t look for bigger profit initially; your main aim is to protect your capital.

When to book profit

If the price moves in your favor, book it.

  • Do not wait for bigger profit.
  • A small profit is better than a bigger one; do it consistently.

What is the best time to trade?

There are some times when there will be the best movements in India.

  • Usually morning, 9 am to 10:30 am
  • evening, 6:30 pm to 10 pm

You don’t need to trade all day; just wait for the opportunity.

Beginner’s mistake

You buy a trade, but if you don’t know where to exit, you will hold on to a trap.

For beginners, stop-loss is a must; if the price is falling, losses increase, and safety is our first priority.

You buy silver at $80; prices fall to $78. If you didn’t put a stop loss there, the prices may fall further to $75, and the loss becomes more.

Sometimes the prices may bounce back and go to $85, but we need to be careful. Always decide in advance. If the prices go there, I will exit. A small loss is fine; a big loss destroys the account and confidence.

Too many times

Doing too many trades in one day is missing an opportunity at the best time.

If you are doing 10 trades per day and 6 trades become losses, you have already lost money. For beginners, trading one to two quality trades is always the best; it gives clear directions.

Emotional Decisions

Trading should not be based on excitement, fear, and anger.

If the prices go higher and higher, don’t be tempted and buy there; the prices will go down as soon as you buy.

Social Media Noises

You should not blindly trust what someone says on Instagram, YouTube, or WhatsApp. You don’t know their exit point; be careful before you blindly trust. If you buy and don’t know where to sell, you will be trapped.

It is always better to learn the chart and candle movements.

Do not try to recover the loss immediately

If you buy a contract and make a loss of 1000 rs, accept it. The market will always give you another chance; do not do revenge trade to recover the loss.

If you try to recover the loss, you would get a further loss of 3000 rupees. It is better to wait for an opportunity for the next day.

Make trading a part of the journey; nobody can be a master in a month. These skills are also like cycling, cooking, and driving. Similarly, it needs time to build that skill; it’s okay to make mistakes. What is important is learning, improving, and staying disciplined.

“Small drops make an ocean.”

Simple Trading Routine

Trading becomes more and more stressful. You don’t have any plan. You need to be very calm, avoid overtrading, and avoid panicking. Your main goal is to protect the capital. Just follow this simple trading routine.

First, open the chart

Firstly, open the chart. As I said earlier, use the 5-minute chart. Do not rush to put the order immediately; take time to watch the market.

Observe the market

Try to observe and understand the market, whether the prices are moving up or down, slowly or sideways. Take your time to observe the market, and try to understand the mood of the market, so we can go in confidently.

Wait for your turn.

Be patient before you trade. Remember, with just one swipe, the market will decide our mood and life. Wait for your turn. There will be some signals you can clearly see. If you didn’t see any signals or not confident, skip the trade for the next day.

Go with only one trade

Beginners will always fall for the trap. Go with only one trade, and you will lose all your money when you go with too many trades.

Place your stop loss

After you buy, place a stop loss on your limit and make the trade secure. Make the safety line; stop-loss will make your limit and protect your capital.

Exit the trade

Exit the trade calmly with a small profit or small loss; it’s ok; both are normal in trading. Close the app; it’s done for the day.

That’s all; these are the simple routines. Follow these every day; this will be a successful strategy instead of aggressive trading.

My final words

I always say, trading is not about getting rich overnight.

Do it patiently, do it small, learn step by step, and protect your capital.

Be calm, even on the worst days; keep learning little by little every day, and the progress will come to you. All the very best.

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