 Hey, everyone welcome to another video lesson from navigation trading calm in this lesson I want to address a question that I get quite a bit and that is I'm a new trader What should I focus on first and so I want to kind of give you a little bit of a a cheat sheet To walk you through kind of what I think you should be focusing on when you first get started with navigation trading and I want to emphasize one of the most critical things to start with is Paper trading so a lot of the major brokers that you'll use have a Paper trade capability meaning they'll give you an account with virtual money With full functionality of the platform so that you can place trades and watch them and learn and Understand the concept before you actually have to risk real money This is true with thinkorswim from TV Ameritrade now tasty works Our other preferred broker is working on their paper trade platform, but it's not available yet But you can still set up theoretical trades in their platform and watch them as Price moves around to get an idea of what the effect of different situations are going to be on that trade So I'd highly highly recommend that I've seen way too many times when traders come in and a lot of times Is people with larger accounts they'll come in and think just because they have a lot of money And they've been successful in other areas of business or life that they can come in and be successful trading Without learning the ropes without actually understanding the process and they'll start taking our trade alerts without having any idea How the trade actually works and it always blows up in their face So I really highly encourage you to take the time to learn first Because what happens is if you come out of the gate and you start making trades and especially if they're you know larger trades You're going to get slapped the market is going to slap you and here's what that does to your psyche all of a sudden now you start thinking this doesn't work and This is not gonna work for me. I lost money and everything else So from an emotional from a psychological standpoint It puts you behind the eight ball from being coming a successful trader And then if you quit before you actually see that success and really understand the concepts and why they work Then you never get to the point of being consistently profitable And it's a real shame because this is one of the most powerful things that you can ever learn from a standpoint of Generating consistent income and being profitable and building wealth. So please please please Start paper trading understand the concepts understand the strategies before you risk any real capital, okay? I beat that dead horse. So let's move on the next thing I would focus on is You know, obviously within the within the membership area, which is what we're looking at here If you're a pro member you have access to all the different strategy courses the alerts and everything else But the first one is just the option basics and this teaches you how to set up your platform And it shows you some very, you know basic concepts of getting everything set up and once you've got that in place Then the first strategy that I would recommend looking to is the iron condor And what this allows you to do is it allows you to place trades that are what we call delta neutral Meaning you are not trying to choose a direction All you care about is the price of that stock or the price that ETF staying within a specific range So iron condors are great vehicles to start with they are defined risk Meaning you define your risk at order entry, you know exactly what you're risking on that trade before you even Press the go button and so it's a very powerful strategy and and so that would be kind of number one The second one is short strangles now a lot of people have different opinions on this They think oh no, these are naked options You should not even think about using these as new traders but the bottom line is if you use these on Low price symbols meaning the lower the price of the stock or the lower the price of the symbol the lower Risk and the lower buying power capital needed to place those trades. Let me give you a quick example If we go to the platform, I've pulled up EWZ, which is the Brazilian ETF It's kind of like the Dow of Brazil and so if you look at that, it's a 41 dollar symbol It's trading at about 41 dollars right now if I pulled up EWZ and I put on a short strangle Which is what we're looking at here This is the risk profile the visual representation of a short strangle and if you look down here the margin required to put This on is five hundred and sixty five dollars. Okay, and you can kind of think of that as theoretical risk Now, of course if there's some major black swan event, could you lose more than five hundred? Yes But you know, it's not very likely and these are very high probability trades And so if you want to start learning short strangles, which is an excellent strategy that you're going to want to learn eventually You can do that even with smaller accounts even as a beginner and just stay extremely small with one contract on lower price symbols like EWZ, EWW XRT, these are all great symbols to start with So that would be the next one and those are both Delta neutral type strategies So we want price not to we don't care if it goes up. We don't care if it goes down We just wanted to stay in a specific range from there The next course I would look at is our directional strategies course which is called winning options strategies for any market and Within this it's going to give you all different directional strategies If you have an assumption that a stock or an ETF is going to move a certain way We want to use vertical spreads and that allows you to define your risk and have a directional assumption But still put the probabilities on your side, which is very important no matter what you're trading Okay, so that would be the next step and then the other thing that I would mention to start with and this is Where I'm going to end it, you know as a new trader like I said we want to get you some wins We want to get you engaged and understand these strategies and that's what's going to make you consistently profitable long-term I don't want to provide, you know 20 different things for you to do So this is the last thing that I would do as a new trader and that is look at earnings trades Okay, now if you're part of the navigation trading trade hacker community we have a whole lot of Traders in there who are posting trade ideas a lot of the ideas that we're looking at every single day are earnings trades and the reason I like earnings trades for new traders is because A you can put these on with defined risk the strategies that we utilize can allow you to risk very little capital And we're talking a few hundred dollars per contract. So if you wanted to start with one contract we're talking about just a few hundred dollars at risk on anyone trade and The thing for new traders is it helps you learn these strategies Very quickly and here's why is because when we put on these overnight earnings trades We're putting them on before the market closes one day. There's the closing bell We put them we put them on before the market closes each day for that specific earnings announcement on that specific stock And then we're typically closing it the very next day So this is an expedited way to learn some of these strategies whether it's iron condors or strangles or butterflies or iron butterflies or some of the other strategies that we use on these Earnings plays that way you can look at the strategy and how it works and how implied volatility affects the pricing of these options and it happens Overnight so we're in one day and we're out the next and it gives you that expedited learning curve as opposed to some of our main core Income strategies, you know, we're in those trades for several weeks to sometimes a couple months if we have to adjust or roll So that is the checklist one paper trade to learn iron condors and strangles three learn directional trades using verticals and four Look till you use overnight earnings trades to expedite the learning process and stay small the key to This business is staying small relative to your account size And when you're first starting out you need to stay even smaller because we want you to understand the concepts Learn how to trade get some wins get consistently profitable from the get-go and that's going to help you long term So I hope this was helpful if you have any questions let us know and if you want to check out other stuff that we're doing Always check us out at navigation trading calm. See you in the next video