5 Things to Do Before You Start Trading

So, you want to start trading. You’ve seen the TikToks. You’ve heard your buddy bragging about his “six-figure swings” (he’s eating ramen, by the way). Maybe you’re fired up and ready to conquer Wall Street from your sweatpants. Hold up. Before you throw your hard-earned cash at the markets, let’s tap the brakes. There’s a minefield out there, my crypto curious friend, and nobody wants to step on the emotional equivalent of a bear trap.

Ready? Let’s break down the five things you need to do before you start trading, so you can play smart, stay sane, and maybe keep your dignity (and your savings).

1. Figure Out What the Heck You’re Actually Doing 🤦

Trading isn’t just pressing “Buy” when a meme stock is trending. It’s not roulette with fancy charts. You need to know the rules of the game before you play. Otherwise, you’re just tossing your money into a blender and hoping for a smoothie.

What to do:

• Read the basics. Books, blogs, YouTube, whatever you vibe with.

• Understand how different markets work (stocks, crypto, forex, options, etc.).

• Get cozy with the lingo. “Going long” isn’t a weird Tinder reference.

• Learn the difference between investing and trading.

Think of this like learning to swim. You don’t jump in the deep end just because you bought fancy goggles. You start by not drowning.

2. Set Goals - Like, Honest Ones 📝

Everyone says they want “financial freedom.” Cute. But what does that mean? Are you trying to flip $200 into a Lambo next month, or are you looking for steady growth? Get real about what you want from trading, and write it down. Very clear goals on EXACTLY what you want. If your goal is “get rich quick,” here’s some free advice: Don’t.

Ask yourself:

• How much can you afford to lose without flipping over your kitchen table?

• Are you in this for adrenaline, or to build something steady?

• How much time can you actually spend trading? (Hint: If your boss is watching, maybe less than you think.)

Pro tip: If your answer is “all in, baby!” - stop. Reboot. Come back when you’re ready to treat your money with respect, not as a lottery ticket.

3. Build a Trading Plan (Yes, Like an Adult) 📊

Would you go on a road trip without Google Maps? Didn’t think so. Trading without a plan is a recipe for disaster, or at least, for some legendary facepalms.

What should your plan cover?

• What you’ll trade: Stocks? Crypto? Cattle futures? (Please, no.)

• How you’ll pick trades: Technical analysis, news, a magic eight ball?

• When to get in and out: Entry and exit rules. No winging it.

• How much to risk: Never bet the rent. Limit each trade to a small chunk (pros keep it to 1-2% of their account - not calling myself a pro, but I like 0.25-0.5%).

A trading plan is your cheat sheet for when things go sideways. And trust me, at some point, things will go so sideways you’ll think you’re in an M.C. Escher painting.

4. Practice With Fake Money First 💸

Why would you risk real cash learning to trade? Start with a simulator or paper trading account. It’s Monopoly money, but it counts emotionally, at least.

Here’s why this matters:

• See if your brilliant ideas actually work (spoiler: most don’t at first).

• Get used to the chaos of real-time markets without losing sleep.

• Build discipline, paper trading can still roast your ego, but not your wallet.

Take it seriously. If you can’t stick to your plan with fake money, what makes you think you’ll be disciplined when real dollars are on the line?

5. Respect Risk (Or Prepare for a World of Pain) 😬

Markets don’t care about your hopes and dreams. They’ll eat you alive if you get cocky or lazy about risk. The best traders are obsessed with not losing big. It’s not sexy, but neither is bankruptcy.

Simple risk rules:

• Use stop-loss orders. If you don’t know what that is, look it up - right now.

• Never risk more than you can shrug off. Emotional trading = dumb trading.

• Keep cash on hand. Don’t go “all in” unless you want an early retirement from trading (not the fun kind).

• Accept losses. Everyone eats dirt sometimes. Move on.

Think of risk management as the seatbelt in your trading car. It’s not cool, but it keeps you from flying through the windshield.

Quick Recap (Because You’ll Probably Forget)

• Learn what you’re doing or get ready to pay tuition to the market.

• Set real goals and keep your expectations in check.

• Build a trading plan so you’re not just guessing.

• Practice with fake money until you’re less terrible.

• Respect risk, or the market will school you—hard.

Final Thoughts:

Trading looks easy on Instagram. Most of those flexers are faking it, losing big, or selling you a course. The market is ruthless and doesn’t care about your vibe or your vision board.

Get your house in order before you jump in. Learn, plan, practice, and above all, respect the process. If you do, you might actually enjoy the ride - and if you mess up, at least you’ll know you did it with your eyes open.