What is trading?
Trading is buying and selling financial instruments to try to profit from changes in their price. A trader buys if they expect the price to rise and sells if they expect it to fall.
With TradingRoad, you trade the price movements of currencies, gold, indices, shares, oil and commodities on MetaTrader 5, without owning the underlying asset. That makes it possible to trade both rising and falling prices, but it also means losses can build up quickly.
The biggest of these markets is foreign exchange: currencies traded an average of US$9.6 trillion a day in April 2025, according to the Bank for International Settlements.
What do you need before you start trading?
You need five things before you start:
- A device and a stable internet connection. A computer is best for learning; a phone is fine for checking positions.
- Time to learn. Plan for a few hours a week for at least the first month.
- Identity documents. A valid ID and a proof of address are needed to open a real account.
- Money you can afford to lose. Never use savings you need for rent, bills or family.
- Realistic expectations. Trading is a skill that takes time, and losses are part of it.
Step 1: Learn the basic trading terms
The first step is to understand the words you will see on every trading screen. These six terms cover most of what a beginner needs:
| Term | What it means |
|---|---|
| Buy (long) | You profit if the price rises |
| Sell (short) | You profit if the price falls |
| Spread | The difference between the buy and sell price; it is a cost of every trade |
| Pip | The smallest standard price step in a currency pair, usually 0.0001 |
| Leverage | Trading a larger position than your deposit; it magnifies gains and losses |
| Stop loss | An order that closes your trade at a set price to limit your loss |
Our free trading basics course explains each of these in short lessons.
Step 2: Choose one market to focus on
Choose one market you already understand, because it is easier to learn how prices react to news you already follow.
| Market | What moves it | Good starting point if you |
|---|---|---|
| Gold (XAU/USD) | The US dollar, interest rates, global uncertainty | Already follow gold prices |
| Forex (for example EUR/USD) | Interest rates, inflation, economic data | Follow the dollar and exchange rates |
| Indices (for example US 500) | Company earnings, economic growth | Follow stock markets |
| Oil (Brent, WTI) | Supply, OPEC+ decisions, inventories | Follow energy and regional news |
Read what moves the price of gold or what forex is and how it works to go deeper.
Step 3: Open a free demo account
A demo account is a practice account that uses virtual money with live market prices. It lets you learn the platform, test your ideas and make mistakes without losing real money.
Open a free demo account and treat it seriously: use the same amount you plan to trade with later, and follow your rules on every trade.
Step 4: Learn how MetaTrader 5 works
MetaTrader 5 (MT5) is the trading platform you use to see prices, read charts and place trades. Spend your first sessions on these basics:
- Download MetaTrader 5 and log in with your demo details.
- Add your chosen market to Market Watch and open its chart.
- Change the chart timeframe, for example from 1 hour to 1 day.
- Place a small demo trade with a stop loss and a take profit.
- Close the trade and check the result in the History tab.
Step 5: Write a simple trading plan with risk rules
A trading plan is a short set of rules that decides when you trade, how much you risk and when you stop. Writing it down before you trade keeps emotions out of your decisions.
A simple plan answers five questions: which market, at what times, what makes you enter, where your stop loss goes, and how much you risk per trade. Many traders risk no more than 1% to 2% of their account on one trade. For example, with a $1,000 account, a 1% limit means a maximum loss of $10 per trade.
Our risk management guide shows how to size each trade.
Step 6: Open and verify a real account
When your demo results follow your plan for several weeks, you can open a real account. With TradingRoad this takes four steps: register, verify your identity, fund your account and log in to MT5. See how to open an account.
Keep in mind that real money brings real emotions. Many traders find that results change when their own money is at risk.
Step 7: Start small and review every trade
Start with the smallest position size and keep a trading journal. After each trade, write down why you entered, where you exited and what you learned.
Review your journal every week. Patterns in your mistakes show you what to fix faster than any new strategy.
What are the most common beginner mistakes?
The most common beginner mistakes are trading without a plan and risking too much on one trade. Others include:
- Using high leverage before understanding how it works
- Trading without a stop loss
- Moving a stop loss further away to avoid taking a loss
- Trading many markets at once
- Trying to win back a loss immediately (revenge trading)
- Skipping the demo stage
What are the risks of trading?
The main risk is losing money quickly, because leverage makes every price move larger in your account. Prices can also jump past your stop loss during news or at the weekly open.
No method wins every time, and past results do not guarantee future results. Only trade money you can afford to lose, and stop to review your plan after a series of losses.
Frequently asked questions
How much money do I need to start trading?
You can practice with a free demo account at no cost. For a real account, the minimum deposit depends on the account type [CONFIRM: minimum deposit]; only deposit money you can afford to lose.
Can I learn trading for free?
Yes. You can use free lessons, guides and a demo account to learn the basics before risking any money.
How long does it take to learn trading?
Most beginners need several weeks to learn the platform and basic risk rules, and much longer to trade consistently. There is no fixed timeline.
Is trading the same as investing?
No. Investing usually means buying assets to hold for years, while trading aims to profit from shorter-term price changes and often uses leverage.
Can I trade on my phone?
Yes. MetaTrader 5 has apps for iPhone and Android, but most beginners find it easier to learn on a computer first.
Sources
- Bank for International Settlements, OTC foreign exchange turnover in April 2025, 30 September 2025.
- MetaQuotes, MetaTrader 5 Getting Started and Demo Accounts.
- MetaQuotes, MetaTrader 5 Market Watch.
- MetaQuotes, MetaTrader 5 Stop Loss and Take Profit documentation.
Educational content, not investment advice. Trading with leverage carries a high risk of losing money rapidly.