Trading Academy Day 1: Which Markets To Trade?

Summary

This video serves as an introduction to a trading academy designed for beginners. It outlines the four primary markets for trading: Futures, Forex, Options, and Crypto, with a focus on helping new traders navigate these markets effectively. The instructor emphasizes the importance of starting with demo trading or prop firms to minimize risk and avoid losing personal money. The video also discusses the various advantages and challenges of each market, providing personal recommendations on which markets to start with. Overall, it aims to guide beginners from zero knowledge to profitable trading in 30-90 days.

Takeaways

• 😀 The Academy is designed to take someone from zero knowledge to a profitable trader within 60 to 90 days, covering basics to advanced concepts.
• 😀 The first step in learning to trade is determining which market to focus on: Futures, Forex, Options, or Crypto.
• 😀 Futures markets are recommended as the most straightforward and precise trading option, with various instruments like S&P 500 and Nasdaq available for trading.
• 😀 Forex trading involves currency pairs (e.g., USD/JPY) and is a clean market, though it is less simple than Futures.
• 😀 Options trading is more complex and requires knowledge of various factors, making it more difficult for beginners to master quickly.
• 😀 Crypto is highly volatile and risky, making it less suitable for beginners who are just starting out with trading.
• 😀 For beginners, starting with a demo account or a prop firm account (using virtual money) is recommended to minimize risk and gain experience.
• 😀 A prop firm allows traders to use others' money to trade, lowering the risk compared to using a live account with personal funds.
• 😀 TopStep is a recommended prop firm for Futures, offering beginner-friendly challenges with various account sizes and profit splits upon success.
• 😀 It’s crucial to understand the risk involved with live trading—using your own money is high-risk, and demo trading or prop firms offer safer alternatives.
• 😀 The recommended learning path for beginners is demo trading first, then moving to a prop firm, and finally transitioning to live trading when more experienced.

Q & A

What is the main goal of this Academy?

The main goal of the Academy is to take someone from knowing nothing about trading to becoming a profitable trader as quickly as possible, ideally within 60 to 90 days.

What are the four main markets covered in the script?

The four main markets discussed are Futures, Forex, Options, and Crypto.

Why is Futures considered the best market for trading?

Futures is considered the best market because it is simple, straightforward, and offers a wide range of instruments to trade, such as stock indices like the S&P 500, Nasdaq, and Dow Jones. It is also known as the 'gentleman's market' due to its precision and cleanliness.

What is Forex and why is it a good market to trade?

Forex involves trading currencies, such as the US Dollar against the Japanese Yen. It is a good market because of its liquidity and simplicity, though the speaker personally doesn’t trade it often anymore.

What makes Options trading more complex compared to Futures and Forex?

Options trading is more complex because it involves various factors that need to be considered, such as different strategies, timing, and the mechanics of options contracts. Many beginners fail at Options due to the complexity of these elements.

Why is Crypto trading risky, according to the speaker?

Crypto trading is considered risky because of its extreme volatility, which makes it harder to predict and more prone to large price swings. The speaker recommends investing in crypto rather than actively trading it, especially for beginners.

What is the difference between using a live account and trading with a prop firm?

A live account uses your own money to trade, which means you bear the full risk of loss. A prop firm, on the other hand, allows you to trade with the firm's money based on your performance in a demo account, reducing your risk significantly.

What is the advantage of using a prop firm to start trading?

The advantage of using a prop firm is that you can trade with a smaller upfront fee and not risk your own money. You take a challenge and, if successful, the firm funds your account, allowing you to earn profits while minimizing personal financial risk.

Why does the speaker recommend demo trading before jumping into live accounts or prop firms?

The speaker recommends demo trading because it allows beginners to practice trading in a risk-free environment, getting familiar with the platform, terminology, and strategies without the fear of losing real money.

Which prop firms does the speaker recommend for Futures trading?

The speaker recommends **TopStep.com** and **My Funded Futures** for Futures trading, as they are beginner-friendly and have favorable payout rules and challenges for new traders.