Step-by-Step Tutorials
Tutorial: A Framework for Your First Live Trade
The first live trade is psychologically unlike any paper trade. This step-by-step framework minimises mistakes and ensures you have a complete plan before pressing the button.
Key rules
- Complete a pre-entry checklist before every trade — never 'wing it' on any live trade
- Place your stop loss as an order immediately after your entry fill — not as a mental note
- Don't watch positions tick-by-tick — it statistically leads to worse decisions and premature exits
- Size your first 20 live trades at 10–25% of normal size — you're buying experience, not trying to profit
- Rate process quality (not P&L) in your journal after every trade — this is the real performance metric for beginners
Transitioning from paper trading to live trading is a significant psychological shift. Even when you know intellectually that it is a small amount, real money engages your loss aversion in ways simulation never does. This framework minimises the potential for emotional mistakes.
**Before the Trade — The Pre-Entry Checklist** 1. Is the setup type in my trading plan? (If not, don't take it) 2. What is the exact entry price? (Limit order pre-placed, not market order) 3. Where is my stop loss? (Specific price, not 'somewhere below') 4. Where is my first target? (Specific price with R calculation) 5. What is my position size? (Calculated from 1% risk, not rounded to 'round lots') 6. Is there a scheduled news event within 2 hours? (Check calendar) 7. Am I in a clear emotional state? (Not stressed, tired, or overconfident)
**The Entry** Place a limit order at your planned entry. If price doesn't reach your entry, let the trade go — do not chase. Simultaneously place your stop loss order immediately after fill confirmation. Do not wait.
**During the Trade** Do not watch the position tick-by-tick. This is proven to increase poor decision-making. Check at pre-defined intervals (every 30 minutes for a day trade, daily close for a swing trade). The plan was made in calm conditions. Trust it.
**The Exit** At your planned exit: close the position. Do not 'just let it run a little more' unless you have pre-defined rules for this. Log the exit immediately.
**The Post-Trade Review (within 24 hours)** Did I follow my plan? Were there emotional moments? What would I do differently? Rate the process quality 1–10 (separate from the outcome). Log everything in your trading journal.
**Start with the Smallest Possible Size** Your first 20 live trades should be sized at 10–25% of your normal planned size. The goal is to learn emotional management, not to make money. The learning cost of these trades (being undersized) is far less than the cost of a full-size mistake made due to emotional inexperience with real money.