How I Would Learn to Trade Options | Step by Step

what's up YouTube If I had to start over and learn the trade guys here's what I would do in this video I'm going to explain my process step by step so thanks for stopping by please like And subscribe listen guys I help new and beginner investors learn to build wealth through the stock market I got over a decade plus worth of experience knocking it out the park and I'm here to help you guys do the same so how I would learn to trade guys if I was just starting out number one I would find an expert or experienced Trader I would kind of come out the gates looking for a mentor or a trusted voice online that I could look to that can teach me and show me in a way that is best fit for my learning style first and foremost then I will be open to taking a class more so so I can learn the basics of trading you know like the charts the candlesticks the lingo okay you want to understand the verbiage so that helps cut down the learning curve so that you can kind of know off the top what you're looking for what you're looking out for okay then guys I will begin to start saving money I always have a saying around my way when people ask me Chris how much do I need to start and a rule of thumb that I use on my journey and I tell you guys all the time that I'm self-taught and I've done extremely well 250 is good for starting out up to a thousand and five hundred dollars okay around a thousand fifteen hundred dollar range so what that does guys is it gives you something to work towards so you got to start saving so you have to modify your lifestyle and begin doing the things that you know you can either tuck away 250 or do some things that you know you don't built it up to that fifteen hundred dollar range so that when it comes time to live trading you guys have adequate amount of funds that you can at least begin to practice with on the journey okay then guys become obsessed with learning and math during this craft you want to be all in you want to be locked in you want to make sure that you're listening to this every day everything you do is kind of guiding you towards you know what I want to get better I want to perfect my craft I want to be the best that I can be I want to learn this unique skill set that lateral to my job lateral to other things I may do if I learn to do this alongside my investments that I can learn to make and pick up a little extra income on the side or if I want to ever scale it up I can do so if I choose to so become obsessed with this game learn it fall in love with it you want to eat it you want to sleep it you want to think about this you want to start to visualize these things in your head on a journey okay and then learn to paper Trade A lot of times a demo account or a paper trading account is a great way to start but listen to this guys don't go off paper trading and you using an amount of money you know you wouldn't do in real life kind of if you can keep it in the realm of what you would really do so if you know you wouldn't trade three thousand dollars on a trade right out the gate and you don't know what you're doing don't do that in your paper trading account start off practicing good habits start building the right relationship on your trading Journey with your money as well as your trades okay because that's going to make a difference when you start going further down the road on your journey okay so a demo account is a great way to learn you can again take your losses you can make some wins you can see the risks associated with it now listen it won't be the same because again it's not your money the game gets totally different when it becomes your real money so learn a paper trade but try to keep it as realistic as possible so that when you do it feels the same to you so that you don't start owing my paper trading account I was doing this but then as soon as you you go to try to trade for real you're not even trading with the same conviction because it's just not the same now you're scared now you got anxiety now you're scared to pull the trigger now you're scared to take the shot okay so again practice good habits now in your paper trading account then when you transition to your live trading you will see that it aligns and things kind of feel the same it's not a shock to you begin trading One stock not an index I'm gonna say that one more time begin trading One stock and not an index reason being I say this on a journey as I look back okay a index like the S P 500 spy or QQQ those are daily contracts okay and so sometimes you need the time of a regular stock on your expiration date so that you can have the time for a trade to run this course if you are up against limited time if you're racing Against Time and Theta Decay and time Decay guys before you know it a winning trade could be a losing trade simply because you didn't have enough time so I often say guys start with individual stocks like a stock such as a apple there's a lot of liquidity in it something like a AMD okay something that you can learn to navigate properly before you move to a index such as the Spy or the cues or something like that also guys trading one time a day meaning waiting sitting back and taking out one high probability trade setup that you discover will also be something that I will reverse course and do if I was to start over something you guys might want to consider on your journey if you're just starting off you don't have to try to over trade because the more you trade the more you're putting yourself at risk but if you can scale it back and maybe find one or two trades a day and make your money like that you limiting your risk you are also eliminating your exposure therefore you more likely are taking high probability setups and trades on your journey reflect on your winners but focus on your losers fully understand your losses and what setups are tripping you up you want to know ma'am every time I Lose I'm losing on this type of setup I'm losing on this type of patter I'm losing on when the stock market does this you want to reflect on your losers you want to focus on them in such a way that you know down to a t next time you see it happen on your journey you know you know what I got caught slipping that last time I took this trade for instance guys sometimes the market may be going down and you may jump in thinking it's going to continue down only to see it reverse once you jump in you ever feel like the market targets you and sometimes that's just you learning you know what I lost last time jumping in thinking it was going to continuously go down only to see It reversed once so I jumped in reflect on that focus on that make the modifications and the adjustments necessary so that you don't keep getting tripped up by the same thing on your journey put in the work put in a Time listen guys on your journey you will have good weeks and bad weeks it comes with the territory you need to embrace both you need to learn from the good weeks and you need to learn from the bad weeks you need to embrace it all you need to know that the bad weeks are inevitable you're going to have some weeks guys you're gonna be like mad last week the last several months I was doing my thing all of a sudden I'm in a slump this particular week it's kind of like being an athlete if you're a shooter if you like Steph Curry for instance saying all of a sudden you know you're the best three-point shooter in the world but whatever reason you are having a bad week this particular week you can't make shots that you know you normally make the same happens on our trading Journey guys one thing you want to do is understand you gotta constantly put in work you got to constantly be open to to learning and growing and knowing that the journey comes with abs and flows it comes with wins and losses I often talk about Chances Make Champions and it takes money to make money you have to know guys with no reverse there's no reward so it comes with the territory but continuously put in the work put in the time so that you fully know yup this comes to territory a loss won't demoralize me a loss won't make me throwing a towel but I'm gonna also pick myself back up and get back to my winning ways then guys find your winning formula develop a process so you can continuously replicate your success the one thing that I would do different okay sometimes you come out the gate and you get beginner's luck so you might win but you don't know how you win when you develop a formula you know you can go back to the well time and time again and whenever you see certain setups in the chart whenever you see certain patterns emerge you know you can play that and win you can have a high probable chance of winning this particular type of trade because you are familiar with the setup you know you fully understand this formula okay and so find your winning formula whatever that may be okay if you know I like to to use the 20 and the 5 SMA I like to use the RSI or the v-wop or I like to use the macd or I like to use the 13 or the 48 or I like to wait for my indicators to Cross or I like to wait to volume picks up whatever it is find your winning formula Master it because if you can replicate your success you know you can go back and do it time and time again eventually you can show others how to do the same that's the key and study Market patterns and behaviors I often talk about this guys it's so important on your journey especially when you're starting off if I could do it all over not only understanding the trends of the market but understanding when the market is going to reverse understanding the macro things that are at play that plays a role into how the market may be performing whether it's stuff like interest rate hikes or high inflation you want to be mindful of the patterns that are taking place that are shaping how the market is performing so that you can make sure that it doesn't impact your trade or you know how to play it properly okay and so with that the only understanding Trends I only understand the reversals but finding your winning patterns pattern recognition for example guys on your journey you might notice the bull flag emerge you might notice things like a Bear Flag you might learn things and see things such as the double top the triple top the double bottom and if you can find one of those formula at least one and every time you see it let that be the trade you take remember take one trade a day okay starting off with one contract and if you take that high probability trade you are going to increase your success rate because again the eyes are in your favor so learning to spot patterns that lead to success would be one thing that I would change because I remember I got lucky when I started off and I was winning but then when I started losing I never knew why I was was winning okay and so then I was not able at first to replicate My Success now guys I have a Flawless system yes you're going to still have some bumps and bruises you're gonna have the market hit you with some crime candles and things you can't account for that may invalidate your TA or might invalidate your DD okay at times but 80 percent of the time guys I'm on the right side of the trade and you can too if you learn certain patterns certain behaviors certain setups that work in your favor that lead to success more times than not so guys once again make sure study Market patterns and you find your winning setup because it makes the game a lot easier listen guys I hope this was helpful these are some things that if I could start the game back over and go back 12 13 years these are some of the things that I would do I'm just hopefully sharing them with you so if you starting on your journey these things help you expedite your learning curve and increase the success out the gate hopefully this was helpful guys please make sure you like And subscribe listen we make videos like this every day so if you like this one make sure you check out the next one remember most people see the end result very few consider the journey so do me a favor don't forget to like subscribe to the channel make sure you guys grab some free stock using my link below and I'll catch you guys in the next one peace

Channel: Chris Sain

Views: 40,435

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Id: fGJlk05YqyM

Length: 12min 59sec (779 seconds)

Published: Sat Dec 17 2022