Basic Components of a Trading Operation
1. Trading Plan
Strategy (e.g., day trading, swing trading, scalping, position trading)
Market focus (stocks, forex, crypto, futures, options)
Risk management rules (stop-loss, position sizing, risk-reward ratio)
Entry/exit criteria
2. Brokerage Account
A platform that allows you to execute trades.
Examples: Interactive Brokers, TD Ameritrade, Robinhood, eToro, Binance (for crypto), etc.
3. Market Research & Analysis
Technical analysis: Charts, indicators (e.g., RSI, MACD, moving averages)
Fundamental analysis: Company earnings, economic indicators, news
Sentiment analysis: Social media, news trends, options flow
4. Execution & Monitoring
Placing buy/sell orders (market, limit, stop orders)
Monitoring open trades
Adjusting stop losses or taking partial profits
5. Recordkeeping & Review
Keeping a trading journal
Reviewing wins/losses
Identifying patterns and mistakes
6. Tools & Software
Charting platforms (TradingView, ThinkorSwim, MetaTrader, NinjaTrader)
News feeds (Bloomberg, Reuters, Benzinga)
Algo tools (for automated or algorithmic trading)
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๐ Risk Management Essentials
Never risk more than 1-2% of your account per trade
Always use a stop-loss
Diversify if investing longer-term
Avoid overtrading โ discipline > frequency
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