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If this is your first time, this is the only module you need to begin. In 9 steps you'll see what opening a trade really means: what buying or selling is, how to read the chart, how much to risk, and how to place and close your first order. No fluff — only what you'll actually use on day one.
By the TradingCalculator.Pro team · Updated on · About us
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1 · Going long or short
Trading is betting on a direction. 'Going long' (buying) = you win if price GOES UP. 'Going short' (selling) = you win if price GOES DOWN. The big edge over plain investing is you can profit in falls too. Start by practicing long-only until it clicks.
2 · Reading a candle
Each candle sums up one period (1 min, 1 hour, 1 day). The body runs from open to close; the wicks mark the high and low. Green = closed above where it opened (up); red = closed below (down). A long lower wick means someone tried to push price down but buyers pushed it back.
3 · Bid, ask and spread
There are always two prices: the bid (where you can sell) and the ask (where you can buy). The gap is the spread, and it's your first cost: you buy at the ask and, if you closed instantly, you'd sell at the bid, a bit lower. That's why a trade starts slightly in the red — you must clear the spread just to break even.
4 · Pip, tick, lot and contract
These are the units for measuring how far you move and how much you risk. A 'pip' is the smallest step in forex (0.0001); a 'tick' is the smallest step in futures or crypto. The 'lot' or 'contract' is the position size. What matters for you: knowing how much money you gain or lose per point the price moves.
5 · Leverage (with an example)
Leverage lets you move more money than you have. At 1:10 with $100 you control $1,000: if the asset rises 5%, you make $50 (a +50% on your money)… but if it drops 5%, you lose the same. It multiplies gains AND losses equally. To start, use the minimum or none — it's the #1 cause of blown accounts.
6 · How much to risk: the 1% rule
Before thinking about how much you can win, decide how much you're willing to lose if you're wrong. The golden rule: never risk more than 1% of your account on a single trade (with $1,000, at most $10 at risk). That way you can be wrong 10 times in a row and still stand. The stop-loss is what enforces that limit.
7 · Sizing the position
This is where it all comes together: knowing your risk (1%) and the distance from your entry to your stop-loss, you work out HOW MANY units to buy so you never lose more than that 1%. Don't eyeball it — use the Position Size Calculator in the panel: enter your entry, stop and risk, and it gives you the exact size.
8 · Placing the order
A complete trade has three prices: the entry (where you get in), the stop-loss (where you admit you were wrong and exit with a controlled loss) and the take-profit (your profit target). Set all three at once when you open. Aim for the target to be worth at least twice what you risk (a 1:2 ratio).
9 · Close and journal
Once you're in, don't touch it every minute: let it reach the stop or the target. When it closes, log the trade in your journal (entry, exit, reason, how you felt). Winning or losing one trade means nothing; what makes you profitable is repeating a process with an edge many times.
Your next step: practice sizing
The most important skill on day one is working out how much to buy without over-risking. Open the Position Size Calculator and try an imaginary trade: enter your capital, a stop and a 1% risk.