Your day trading
learning path.
Six steps, a clear starting article, and a short exercise at each stage. Learn the risk before the setup, then practice without seeing the future.
Start lesson 1Read in order, or open the topic you need. See an unfamiliar word? Use the trading glossary. After these foundations, explore the candlestick and price-action collections.
Begin with the whole decision. A chart pattern is one ingredient. To understand a trading method, connect the market condition, the trigger, the exit rules, and the risk. Work through one section at a time. Reveal each answer after writing your own; the exercise checks understanding, not readiness to trade with real money.
Understand a trade
Start with positions, orders, and what a trade actually costs.
You will be able to: Explain a trade from entry to net result.
- A long position gains when price rises; a short position gains when it falls.
- Order type affects both the price and the chance of a fill.
- Think about the possible loss before choosing an entry.
Try it
A long position has 2 units. Entry is 100, exit is 103, and total costs are 2. What is the net result?
Check your answer
(103 − 100) × 2 − 2 = 4 units of currency gained. If the exit is 97, the same calculation gives a loss of 8. This example has no leverage.
Read the chart
Read the four prices in a candle, then find areas where price has turned.
You will be able to: Read a candle and mark its body and wicks.
- A candle summarizes an interval; it does not show every movement inside it.
- Support and resistance are areas, with room for uncertainty.
Try it
Open 100, high 108, low 97, close 106: find the body and both wicks.
Check your answer
Body: 6. Upper wick: 2. Lower wick: 3. The close is above the open. That describes this completed period, not the next candle.
Size the trade and exit
Calculate the possible loss, compare the target, and understand exit choices.
You will be able to: Connect a loss budget to stop distance and size.
- Position size depends on stop distance, product value, and costs.
- A target ratio alone does not establish profitability.
- A stop order can fill beyond its trigger price.
Read in this order
Stop placement and position sizeRisk, reward, and expectancyTargets, partial exits, and trailing stopsTry it
Your practice risk budget is 20. A stop is 4 points away and each unit earns or loses 1 per point. What is the maximum size before costs?
Check your answer
20 ÷ (4 × 1) = 5 units. Costs reduce the size you can fit into that budget. Round down to the product’s permitted size; a gap can still produce a loss beyond the planned stop.
Identify the conditions
Distinguish a trend from a range before choosing a trading technique.
You will be able to: Separate a trend, a range, and a transition.
- Follow the sequence of swing highs and lows.
- Give each chart timeframe a clear role; two charts are not two independent signals.
Read in this order
Trend or trading range?Use two chart timeframesPut a candlestick pattern in contextTry it
Swing highs are 110, 114, 112. Swing lows are 102, 106, 103. Is this still a clean uptrend?
Check your answer
No. The latest high is lower and the latest low has undercut 106. Call it a transition until the next structure clarifies; one lower high does not by itself establish a mature downtrend.
Understand an entry
Connect the setup with a trigger and a clear point where the idea fails.
You will be able to: State a trigger and cancellation point before acting.
- A recognizable pattern does not automatically trigger a trade.
- Compare the entry with nearby barriers and the planned stop.
Read in this order
A simple trend pullbackA breakout after consolidationConnect a signal to entry and riskTry it
An uptrend pauses between 110 and 112. Your rule needs a close above 112; price wicks to 112.5 but closes at 111.8. Has it triggered?
Check your answer
No. The close is still inside the pause. Keep waiting under this rule. A break below 110 cancels the setup; do not swap to an intrabar rule after seeing the outcome.
Practice and review
Make a decision before seeing the next candle, then review the process.
You will be able to: Keep a record that separates decisions from hindsight.
- Use completed candles and write down the information available at that moment.
- Record a trigger, cancellation point, planned exit, and estimated costs before an order.
- Compare the plan with what happened, including skipped setups and simulated fill differences.
Read in this order
Build a paper-trading practice routineTry it
A simulated trade wins even though you moved the stop farther away than planned. Was the process followed?
Check your answer
No. Record the rule change separately from the profit. One winning outcome does not validate a broken process. Review losses, skipped setups, and costs under the same rules.
Sources and further reading
Order mechanics and risk principles draw on the sources below. Product-specific examples should be read in their original context.
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