Trading strategies for beginners
Learn trading strategies, one level at a time
Clear, beginner-friendly lessons on how each trading strategy works, from trend following and breakouts to options and risk management. The same ideas apply to stock trading, forex and other markets. Every lesson ends with an interactive quiz that climbs through five levels, so you can test what you know and see your progress.
The learning path
Take the lessons in this order. Each one only uses ideas taught in the lessons before it.
- 00Trading for Beginners: The Basics
- 01Position Sizing and the 1% Rule in Trading
- 02ATR Stop Loss and Position Sizing
- 03Breakout Trading Strategy: Support and Resistance Breakouts
- 04Moving Average Crossover Strategy
- 05Pullback Trading Strategy: Buying Dips in an Uptrend
- 06RSI Trading Strategy: Buying Oversold Dips
- 07Bollinger Bands Strategy: Mean Reversion in a Range
- 08Opening Range Breakout (ORB) Strategy
- 09Time-Series Momentum: A Simple Trend Following Strategy
- 10Covered Call Strategy Explained
How the five quiz levels work
- L1Foundations. Recognise the strategy and its vocabulary.
- L2Mechanics. Know how the signals and rules work, and why.
- L3Application. Apply the rules to realistic chart situations.
- L4Numbers & risk. Size, measure and manage the trade with real calculations.
- L5Mastery. Judge edge cases, failure modes and market conditions.
Score at least 75% on a level to unlock the next one and earn XP. Your rank rises as you climb. Level 1 is open to everyone; a free account unlocks Levels 2 to 5.
All 50 trading strategies
Start here: trading basics
New to trading? Read this first. It explains the words and ideas every other lesson uses.
Trend following strategies
Trend following strategies wait for a market to show direction, then ride it. They accept frequent small losses in exchange for occasionally catching a large move.
- 04Trend followingMoving Average Crossover StrategyBuy when a short-term average price rises above a longer-term one, and sell when it drops back below. A simple way to follow trends.5 quiz levels
- 05Trend followingPullback Trading Strategy: Buying Dips in an UptrendIn a market that is rising, wait for a short dip, then buy when prices start rising again.5 quiz levels
- 11Trend followingDonchian Channel (Turtle) BreakoutBuy a new 20- or 55-day high, exit on a shorter-term low. The rules made famous by the Turtle traders.Lesson coming soon
- 12Trend followingADX Trend Strength FilterUse the Average Directional Index to trade trends only when they are strong, and avoid choppy markets.Lesson coming soon
- 13Trend followingParabolic SAR Trend RidingFollow a trend with a stop that accelerates toward price, flipping position when price crosses it.Lesson coming soon
- 14Trend followingIchimoku Cloud TrendRead trend, momentum and support from the Ichimoku cloud and its conversion and base lines.Lesson coming soon
- 15Trend followingMACD Trend SignalsTrade MACD line and signal line crosses, using the zero line and histogram to judge trend strength.Lesson coming soon
- 16Trend followingMarket Structure (Higher Highs and Higher Lows)Define trends purely from swing highs and lows, and trade breaks and shifts in structure.Lesson coming soon
Mean reversion strategies
Mean reversion strategies bet that a stretched price will snap back toward its average. They usually win often but need firm stops for the moves that keep going.
- 06Mean reversionRSI Trading Strategy: Buying Oversold DipsUse the RSI indicator to spot sharp short-term drops in a rising market, buy the dip and sell the bounce.5 quiz levels
- 07Mean reversionBollinger Bands Strategy: Mean Reversion in a RangeIn a sideways market, buy when price stretches below its normal range and sell as it returns to the middle.5 quiz levels
- 17Mean reversionVWAP ReversionTrade intraday stretches away from the volume-weighted average price back toward VWAP.Lesson coming soon
- 18Mean reversionSupport and Resistance Range TradingBuy near support and sell near resistance while a market stays inside a clear range.Lesson coming soon
- 19Mean reversionPairs TradingGo long one asset and short a closely related one when the gap between them stretches unusually wide.Lesson coming soon
- 20Mean reversionGap FillTrade the tendency of some opening price gaps to close back toward the previous day’s close.Lesson coming soon
- 21Mean reversionZ-Score Mean ReversionMeasure how far price sits from its average in standard deviations and trade statistical extremes.Lesson coming soon
Breakout trading strategies
Breakout trading strategies enter when price escapes a range or key level, aiming to catch the burst of momentum that often follows.
- 03BreakoutBreakout Trading Strategy: Support and Resistance BreakoutsFind a price ceiling and floor, then buy when price breaks out above the ceiling (or sell below the floor).5 quiz levels
- 08BreakoutOpening Range Breakout (ORB) StrategyMark the high and low of the first 30 minutes of the trading day, then trade when price breaks out of that range.5 quiz levels
- 22BreakoutVolatility Squeeze BreakoutSpot unusually narrow Bollinger Bands inside Keltner Channels and trade the expansion that follows.Lesson coming soon
- 23BreakoutBull Flag and Pennant BreakoutTrade the continuation after a sharp move pauses in a small flag or pennant.Lesson coming soon
- 24BreakoutBreakout and RetestLet price break a level, then enter when it returns to test the level from the other side.Lesson coming soon
- 25BreakoutTriangle Pattern BreakoutTrade breakouts from ascending, descending and symmetrical triangles as volatility contracts.Lesson coming soon
Momentum trading strategies
Momentum strategies buy what has been rising and avoid what has been falling, based on the tendency of strong performers to keep performing for a while.
- 09MomentumTime-Series Momentum: A Simple Trend Following StrategyCheck once a month: hold a market if it is higher than a year ago, and step aside if it is lower.5 quiz levels
- 26MomentumRelative Strength RotationRank stocks, sectors or ETFs by recent performance and rotate into the strongest.Lesson coming soon
- 27Momentum52-Week High MomentumFavour stocks trading near their 52-week highs, which research links to continued strength.Lesson coming soon
- 28MomentumGap and GoDay trade stocks that gap up on news and keep pushing higher after the open.Lesson coming soon
- 29MomentumRate of Change MomentumUse the Rate of Change indicator to measure the speed of a move and trade accelerating trends.Lesson coming soon
Price action trading strategies
Price action strategies read candlestick patterns, chart patterns and key levels directly from the chart, often without indicators.
- 30Price actionPin Bar ReversalTrade long-wicked rejection candles at key levels as signs a move has been refused.Lesson coming soon
- 31Price actionEngulfing Candle PatternUse bullish and bearish engulfing candles at support and resistance as reversal triggers.Lesson coming soon
- 32Price actionInside Bar BreakoutTrade the break of a candle that sits entirely within the previous candle’s range.Lesson coming soon
- 33Price actionDouble Top and Double BottomTrade two failed tests of a high or low once the neckline breaks.Lesson coming soon
- 34Price actionHead and ShouldersRecognise the classic reversal pattern and trade the neckline break with a measured target.Lesson coming soon
- 35Price actionFibonacci RetracementUse the 38.2%, 50% and 61.8% retracement levels to plan pullback entries in a trend.Lesson coming soon
- 36Price actionSupply and Demand ZonesFind areas where price left sharply and trade the first return to them.Lesson coming soon
- 37Price actionLiquidity Sweep (Stop Hunt) ReversalTrade the reversal after price runs obvious stops beyond a high or low and snaps back.Lesson coming soon
- 38Price actionFair Value GapSpot three-candle imbalances and trade price returning to fill them.Lesson coming soon
Options trading strategies
Options trading strategies use calls and puts to earn income, hedge, or shape a trade around a view on price and volatility.
- 10OptionsCovered Call Strategy ExplainedOwn shares and sell someone the right to buy them from you at a set price. You earn income, but give up big gains.5 quiz levels
- 39OptionsCash-Secured PutSell a put with the cash set aside to buy the shares, earning premium while waiting for a lower entry.Lesson coming soon
- 40OptionsProtective PutBuy a put on shares you own to set a floor under your losses, like insurance.Lesson coming soon
- 41OptionsBull Call SpreadBuy one call and sell a higher-strike call to make a cheaper, capped bet on a rise.Lesson coming soon
- 42OptionsIron CondorSell an out-of-the-money put spread and call spread to profit if price stays in a range.Lesson coming soon
- 43OptionsLong StraddleBuy a call and a put at the same strike to profit from a big move in either direction.Lesson coming soon
- 44OptionsCalendar SpreadSell a near-dated option and buy a later one at the same strike to profit from time decay.Lesson coming soon
Risk management in trading
Risk management strategies decide how much to trade, where to place stops and when to cut exposure. They matter more to long-term results than any entry signal.
- 01Risk managementPosition Sizing and the 1% Rule in TradingDecide how much you can afford to lose on each trade first, then work out how much to buy.5 quiz levels
- 02Risk managementATR Stop Loss and Position SizingMeasure how much a market normally moves, and use it to place your stop loss outside everyday noise.5 quiz levels
- 45Risk managementRisk–Reward and ExpectancyPlan trades in R-multiples and use win rate and payoff to check whether a strategy can make money.Lesson coming soon
- 46Risk managementScaling Out of WinnersTake partial profits at set targets and let the rest run with a trailing stop.Lesson coming soon
- 47Risk managementKelly Criterion (Fractional)Use the Kelly formula, scaled down, to size positions from a strategy’s edge.Lesson coming soon
- 48Risk managementPortfolio Heat and Correlation LimitsCap the total risk of all open trades and avoid stacking positions that move together.Lesson coming soon
- 49Risk managementHedging an Open PositionReduce exposure with offsetting positions, index hedges or options without closing the trade.Lesson coming soon
- 50Risk managementTrailing Stop MethodsCompare percentage, swing, moving-average and ATR trailing stops for locking in profits.Lesson coming soon
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Common questions
Which trading strategy is best for beginners?
No strategy wins every time. Start with Trading Basics, then learn position sizing, because deciding how much to risk matters more than any entry signal. After that, simple rule-based strategies such as the moving average crossover are a good place to begin.
Do I need to pay or sign up?
No payment is needed. Lessons and Level 1 of every quiz are free with no account. A free account, with just your email, unlocks quiz Levels 2 to 5 and Stages 2 to 4 of the Pattern Trainer, and saves your quiz progress so you can carry on from another device. Without an account, progress is saved in your own browser.
Is this financial advice?
No. The lessons explain how strategies work so you can understand and test them. Trading involves risk of loss, so practise on a demo account first.