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Best in this order:
That way you combine theory and practice from day one.
Usually just 5 to 10 minutes. You fill in the form online and verify your identity. After that, you can practise straight away with a demo account. For trading with real money, your account is activated once verification is complete. You'll find a step-by-step guide on our broker page.
You can get started with a small account from 100 to 500 dollars. To apply the strategy from the Trading Code properly, we recommend 500 to 1,000 dollars. That's an amount for learning and getting comfortable, not an amount that will make you rich.
Important: only trade with money you can afford to lose without losing sleep, and match the account size to your personal circumstances.
Very important. The strategies themselves are easy to learn. Whether you apply them consistently ultimately comes down to your psychology, that is, how you handle greed, fear and losses. That's why you should start working on it as early as possible.
For an in-depth look, our book Trading Psychology by Richard Cohen is probably the best summary on the subject.
Yes. Most of our readers trade part-time. At the beginning, about 1 hour per day is enough. Trades can be planned around the active London and New York sessions and set up flexibly, and a setup can stay valid for several hours or days. So you don't have to sit in front of the screen all the time.
A proven rule of thumb: risk only about 1 to 2 percent of your trading capital per trade. That way no single loss can knock you off course, and you stay able to act even after a losing streak.
What decides your long-term success is not the win rate but consistent risk management with a good risk-to-reward ratio.
Trading refers to the mostly short-term trading of things in order to profit from price changes. Things is first a very general word, but strictly speaking you can also “trade” with everything.
Trading is the oldest business model in the world, where you simply buy cheap and sell expensive.
On this website and in the book, however, we trade exclusively on the stock market with shares or derivatives. Derivatives are securities whose value is derived from another financial instrument such as a stock. This has a few advantages in trading, which we will look at in more detail in the book.
In practice, it is very simple. You click on “Buy” when you believe the price of a share will go up, and you click on “Sell” when you think the price of a share will go down because you can also profit from falling prices in trading.
The magic is knowing when to click on which button. That’s what you will learn in the Trading Code.
Fortunately, the requirements are very low. No matter what your academic qualifications, appearance, origin, or other training, certificates, or credentials are, none of that matters. On the stock market, we are all the same.
The most successful traders I know are all career changers who developed a passion for trading and only later, after they saw how much money you can make on the stock market, switched to trading “full-time.”
The only thing you should bring with you:
Where there is a will, there is a way, Einstein once said so beautifully.
I’ll show you exactly what the path to becoming a successful trader looks like in the Trading Code.
Of course, the decision to try trading ultimately depends on you, but I can share a few reasons that make it special for me:
Trading is not suitable for everyone, and there are certain factors to consider before getting involved:
Before diving into trading, it’s crucial to educate yourself, develop a solid trading plan, and be prepared to handle both profits and losses with a rational mindset.
As a beginner in trading, you should start by reading the book “The Trading Code.” In this book, I provide a detailed description of all the steps from theory to executing your first successful trade.
If you have any further questions, feel free to watch the videos in the reader area and contact me for assistance.
Trading offers a scalable income potential, allowing you to start with a small investment and gradually increase your earnings. For instance, you can begin by buying one share and earn around 10 dollars. As you gain experience and confidence, you can scale up by purchasing 100 or 1,000 shares, resulting in higher earnings of 1,000 or even 10,000 dollars, respectively. This presents a significant opportunity for generating a decent income.
However, it’s essential to recognize that making 10,000 dollars a month may not be feasible with a starting capital of just 1,000 dollars. Initially, it’s more realistic to use a smaller capital to learn and gain experience in the trading arena. Over time, with dedication and skill, the possibilities are boundless.
Based on evaluations by leading brokers, most private part-time traders tend to earn between 2,000 to 4,000 dollars per month. Your actual earnings will depend on the time and energy you invest in trading. The more effort you put in, the higher your potential for long-term earnings.
The key to success lies in knowing when to click on which button, and this is exactly what you will learn in the Trading Code. It equips you with the knowledge and skills to make informed trading decisions and potentially maximize your earnings.
This is a common question I get a lot, but providing a specific answer is challenging. Just like learning a new language or sport, the time it takes to become a successful trader varies from person to person.
Personal experiences differ greatly. For example, when I first tried surfing, my analytical thinking from the stock market didn’t help me much with calculating wind and waves. It took time and practice to develop a more intuitive approach.
Trading is similar; some individuals grasp it quickly, while others may require more time to develop their skills. The key is perseverance and not giving up. Regardless of how long it takes, staying committed to your goals is crucial.
Trading offers numerous advantages, and the potential rewards can be significant. So, even if it takes a little longer to achieve success, the benefits of trading make it worthwhile. With dedication and determination, you can reach your trading objectives.
Remember, there is no specific timeframe for success. Embrace the learning process, continuously improve your skills, and stay persistent on your trading journey. In the end, it will pay off, and the rewards will be well worth the effort.
I recommend that you invest at least 1 hour per day at the beginning. This is not a lot, but you will see that you will quickly make progress and will then be happy to invest more time. Of course, it also depends on many different factors, such as your strategy and the markets you want to trade. But 1 hour per day is a good start. Longer-term strategies can also be traded very profitably with one hour per month.
In the book, I provide more detailed information on this topic, but here’s a brief overview:
The most popular trading software among both beginners and professionals is Metatrader. One of its most impressive features is that it is entirely free to use. Additionally, you can find helpful introductory videos on trading in the reader area.
Below the Broker section in the book, you will find a reputable provider that offers Metatrader free of charge. I currently recommend this specific provider because I personally use their services, allowing me to offer you support and exchange information.
As demonstrated in the accompanying video, you can easily open a trading account within minutes and begin trading. However, I strongly advise that you first familiarize yourself with the fundamentals and strategies outlined in the trading code before diving into active trading.
By following these steps, you can set yourself up for a successful trading experience with the right software and provider.
The term “financial instruments” might sound complex, but it encompasses a wide range of assets that can be traded. In trading, almost anything can be traded, and some people even make extraordinary profits trading items like FIFA or Pokemon cards.
However, for the purpose of this book, our focus will be on shares and indices. Shares represent ownership in companies, while indices reflect the value of a group of shares within a single index. One well-known example is the S&P 500.
In our trading approach, we do not directly buy or sell shares and indices. Instead, we use a financial product known as Contracts for Difference (CFDs). The book explains CFDs in detail, but it’s important to understand that they simplify trading significantly, and you can trade a diverse range of assets. This includes shares, precious metals, food products, cryptocurrencies, and commodities, among others.
No, trading is not akin to gambling. Although the outcome of an individual trade may seem random, successful trading relies on a well-developed strategy and informed decision-making based on thorough analysis and market knowledge. It is not a game of chance, but a disciplined approach that leads to long-term success. For a more detailed explanation, refer to the article on whether day trading is based on luck or skill.
The key distinction between trading and investing lies in their respective time horizons. Trading involves short-term transactions, lasting from a few minutes to a few days or weeks at most. On the other hand, investing typically refers to a long-term approach, spanning years.
Additionally, the objectives differ between the two. Investors anticipate that the value of their investments will appreciate over time, focusing on the potential for long-term growth and returns. In contrast, traders seek to profit from short-term price fluctuations, capitalizing on both rising and falling asset prices.
In summary, trading emphasizes short-term gains through active buying and selling, while investing centres on a long-term outlook for potential growth and increased value in the assets held.
If you are under 18 years old, want to test a new strategy, or are exploring trading software for the first time, a demo account is an excellent choice. It allows you to practice trading with virtual funds and no financial risk.
Demo accounts offer the advantage of opening multiple accounts for free, each with a virtual starting capital, like 10,000 dollars. They provide a risk-free environment to gain familiarity with the trading platform and hone your skills.
However, if you are serious about learning trading and are willing to commit to it, transitioning to a real money account is essential. Even if you start with just a few hundred dollars and make small profits, the experience of real trading is invaluable.
Real money accounts introduce the emotions and challenges that come with trading, such as greed and fear of loss. Learning to manage these emotions and making decisions with real financial consequences are crucial aspects of becoming a successful trader.
A CFD (Contract for Difference) is a financial product that lets you bet on the price movement of an underlying asset such as a share, an index or a commodity, without owning the underlying itself. This makes trading much easier and you can profit from both rising and falling prices.
Leverage means you can move a larger position with little capital. This increases the potential profits, but to the same degree the potential losses. That’s why consistent risk management is so important.
You go “long” when you bet on rising prices, that is, you buy. You go “short” when you bet on falling prices. That’s one of the big advantages of trading: you can make money in both directions, whether the market rises or falls.
A stop-loss is an automatic order that closes your position once a loss you’ve set is reached. It limits your risk. A take-profit closes the position automatically once your price target is reached, securing your profit.
Together they are the heart of good risk management.
Yes. With AvaTrade’s mobile trading app you can follow prices, open and close positions and set stop-loss and price targets. That way you stay flexible on the go too.
When trading via MetaTrader there are no classic buy or sell fees like the ones you know from a share bank. Your main cost is the spread, that is, the small difference between the buy and sell price. This difference is the broker’s compensation.
If you hold a position overnight, a small financing fee (swap) may apply. For short-term trading within a day it usually doesn’t matter. The MetaTrader software itself is completely free.
A pip or point is the smallest usual unit in which a price moves. Instead of in dollar amounts, many traders measure their profits and losses in points, because that can be compared regardless of position size.
The three most important order types are quickly explained:
On top of that come the stop-loss and the take-profit, with which you automatically cap your loss and profit. You’ll learn how to use the order types correctly in the book.
That depends on the market. The German exchange (Xetra) usually trades from 9:00 to 17:30, the US exchanges from 15:30 German time. Foreign exchange (forex) can be traded almost around the clock on weekdays.
You can always see which exchange is currently open live in our Market Hours. You’ll find upcoming important dates in the Trading Calendar.
The book is available on Amazon, as an ebook, as a printed book and in some cases as an audiobook. You’ll find an overview with all the links on our book page.
For beginners with no prior knowledge at all. The book takes you step by step from the basics to your first own strategy and your first trade.
Yes. Alongside the Trading Code there is the book Trading Psychology by Richard Cohen. It focuses entirely on the mental side of trading, that is, dealing with greed, fear and losses, and is the ideal complement once you’ve mastered the strategy.
We recommend and use AvaTrade ourselves. The broker provides the free MetaTrader and accepts clients from Australia and beyond. You’ll find details and a guide on our broker page.
Prices and spreads sometimes differ significantly between brokers. Because we trade with AvaTrade ourselves, you see exactly the same conditions we do, which makes execution as simple as possible and results easy to compare. It also means we can support you more effectively.
Opening an account takes just 5 to 10 minutes. You’ll find a simple step-by-step guide on our broker page. For a real money account you must be at least 18 years old. To try things out, you can use a free demo account at any time.
Depositing into your trading account is straightforward via bank transfer, credit card or common online payment methods. By card the funds are usually available immediately, by bank transfer it takes a few business days.
Your money is always yours and you can withdraw it. Withdrawals are usually processed within one business day, and it then takes a few more business days until the money reaches your bank account. This requires a fully verified account.
No. With the brokers we recommend there is no obligation to make additional payments. That means you can never lose more than you have in your trading account.
If the market ever moves very quickly and strongly against your position, it is closed automatically once your balance is used up. So it can never happen that you suddenly go into debt or have to top up money. Your risk is therefore always clearly limited to the capital you’ve put in.
If you have any questions, you can reach us any time by email at support@tradingcode.org. We usually reply within 24 hours.
First check your spam or promotions folder, the automatic email sometimes ends up there. If it hasn’t arrived, drop us a short message at support@tradingcode.org with the email address you used when purchasing. We’ll then activate you manually.
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