Getting started in the stock market can be intimidating. Most new investors are bombarded with contradictory advice, technical strategies, and a vocabulary that may as well be from another country. The outcome? Confusion, uncertainty, and sometimes expensive errors that might have been avoided.
In episode 4 of the current educational series on trading, we go in-depth into one of the most important ideas in the stock market: momentum. If you’re looking for how to begin trading stocks as a complete beginner, this episode provides powerful insights that can significantly make your journey easier and enhance your trading results.
This piece deconstructs the key points from episode 4, how momentum is essential and uncovering four tried-and-tested tricks for spotting and trading it. Used in conjunction with the building block strategies from previous episodes, these techniques offer a structured and productive trading checklist for newbies.
Why Momentum Matters in Trading
Knowing how to begin trading stocks as a total beginner involves understanding the significance of momentum. Momentum is the power and direction of price action. Without momentum, trades don’t have the strength to move in your direction.
Momentum simplifies charts to read and trade. When a stock trends with definite direction—either up or down—it is easier to predict. On the other hand, sideways or consolidating markets are more difficult to read and trade profitably.
But catching momentum in real time isn’t always straightforward. That’s why having a set of tricks and tools can make a big difference to beginners. Below are four methods to identify momentum and trade better.
Trick 1: Candlesticks – Reading the Market’s Story
One of the most simple yet most neglected tools in trading is the candlestick.
Every candlestick on a chart is similar to a page in a book, the ongoing tale of sentiment in the market. Being able to read wicks—the thin lines above or below the body of the candle—can uncover who’s driving: buyers or sellers.
- A long lower wick indicates buyers are battling selling pressure and could indicate a move upward.
- A long upper wick indicates sellers are dominating buyers and might indicate a move down.
Size and direction of the wick provide real-time indication. This technique is particularly potent when applied to higher time frames, where indications are more reliable. Never, however, trade based on candlestick patterns alone. Utilize them as one part of an overall checklist.
This is among the basic tools for anyone looking to learn how to begin trading stocks as an absolute beginner.
Trick 2: Trend & Momentum Table – Real-Time Data Advantage
The second trick is applying a real-time metrics table—such as the one found in the TradingLab.ai indicator. This table monitors several key pieces of information that give you instant insight into what’s happening in the market now.
Some key metrics are:
- Volatility – Price is moving more drastically when volatility is high, which makes it simpler to spot trading opportunities.
- Momentum – Indicates whether the prevailing trend is bullish (up) or bearish (down).
- Strength – Shows the strength of the current trend. The higher, the more conviction behind the move.
Example:
- If momentum is green and bullish and volatility is high, green light for a possible long trade.
- If you’re already in a trade and the momentum reverses (e.g., from bullish to bearish), then it’s probably time to close.
This indicator is a great short cut for novice traders attempting to decipher complicated price action. It’s particularly valuable when learning to begin trading stocks as a complete novice, providing new traders with information they can act on confidently.
Trick 3: Volume – The Fuel Behind Price Action
Volume is the stock market’s engine. Without it, price can’t move considerably. That’s why volume analysis is crucial to momentum-based trading.
Here’s how to apply it:
- Watch for rising green volume bars when taking long trades. This indicates that buyers are in play and moving the price up.
- Don’t trade when the volume is stagnant or falling, because it is an indication of lack of interest and poor momentum.
- Newbies tend to neglect volume because it appears complicated. But by merely looking for trends—such as expanding volume with a price movement—you can make more informed trading choices.
- The TradingLab.ai trend table also includes a volume indicator, which simplifies this analysis by using distinct labels for volume conditions to identify them as bullish, bearish, or neutral.
If you’re looking into beginning to trade stocks as a total newbie, becoming proficient in volume analysis will immediately distinguish you from most beginners.
Trick 4: Blending Multiple Momentum Indications
Trading is not about depending on one indicator. It’s about stacking confluence—using several confirmations to raise the chances of a successful trade.
Imagine trading as a checklist:
- ✔️ Candlestick wick signals
- ✔️ Bullish/bearish momentum from the trend table
- ✔️ High volatility levels
- ✔️ Strong volume in the direction of your trade
The more you mark, the greater the likelihood that you’ll be successful. Each trick leverages the previous one, creating a system for enhanced decision-making. If all four come together, you’re probably gazing at a high-probability trade.
This multi-faceted strategy is just what you have to have when deciding how to begin trading stocks as a total newbie.
Why This Episode Is a Game-Changer
Episode 3 introduced market structure—a crucial foundation. But momentum, covered in this episode, is arguably even more vital. Without it, structure doesn’t matter. Momentum is what drives trades forward.
The strategies taught in this episode are designed to help beginners cut through the noise and focus on what really matters. Using candlestick analysis, real-time data, volatility cues, and volume insights, you’re no longer guessing—you’re making informed trading decisions.
Conclusion
Becoming proficient at how to start trading stocks as a complete beginner begins by mastering momentum.
By studying the ability to read candlesticks, utilizing a live trend table, reviewing volume, and also corroborating using volatility measures, you can begin trading with complete confidence. These skills are not mere theory-they are hard-proven, effective tools being applied by genuine traders daily.
If you’re willing to get your trading better, watch this episode again, work the tricks into your routine, and begin putting your trades in business mode—structured, logic-based, disciplined.
And remember, it’ll seem like all at once for now, but the more you work at it, the easier it becomes second nature. Persist—your trading future self will appreciate it.