I’ve just read a blog post from RaboPlus, the online saving and investments bank. Their new marketing campaign is all about ‘Joining the people in the know’… this makes me think about all the people out there who are NOT ‘In the know’ when it comes to Trading Systems.

Like myself (before a friend introduced me to the joys of trading) there are a lot of newbie traders out there who are wandering through the wilderness of the web wanting to get involved in trading but not knowing where to start.

Well, if that sounds like you then read this quick overview of the top 5 things you need to know in order to start your trading career:

1. Acquire & learn a Trading System
   Seek a recommendation, read reviews and either purchase one or spend time reading books to try and find something that may work.
2. Back Test the system
   Get yourself some charting software and download some historical data. Then go back in time and click through each day, minute, hour (depending on your system). Then place fictitious trades when you see an entry signal and exit the trade when your system tells you too. Record the results and repeat for several years, days or months of historical data… just like a recipe
3. Paper Trade the system
   Create an account with your broker and start placing fictitious trades, by either using their Practice Account or your Live Account (if using your Live Account… remember not to click the ’Buy’ button
4. Start Live Trading
   Before you embark on your live trading make sure you are confident in your system and realise that you will lose money and that you are only trading your ‘edge’. 
5. Learn about Trading Psychology
   After your first two trades, I advise reading a good book on Trading Psychology before you continue live trading… if you sign up to our newsletter we have a great book for you to download.

I hope this help people out… I know I wish I had this knowledge before I started out so I could call myself a person ‘In the know’.