Your First Trade: Step-by-Step Walkthrough

Step 1: Choose Your Market

Start with markets you understand:

• Politics: If you follow news closely
• Sports: If you know the teams/players
• Crypto: If you understand the technology

Beginner tip: Look for markets with:

• High volume ($100k+)
• Narrow spreads (1-2 cents)
• Clear resolution criteria
• Reasonable timeframe (not years away)

Step 2: Do Your Research

Before trading, analyze:

1. Market question: Understand exactly what's being asked
2. Resolution source: Who decides the outcome?
3. Current odds: What does the crowd think?
4. Volume & liquidity: Can you exit easily?
5. Time remaining: When does it resolve?

Step 3: Calculate Position Size

Rule of thumb for beginners: Risk 1-5% of your bankroll per trade.

Example

• Bankroll: $500
• Risk per trade: 2% = $10
• Market price: $0.60
• Shares to buy: $10 / $0.60 = 16 shares

Max loss: $10
Max profit: $16 (if Yes wins)

Step 4: Choose Order Type

Market Order (Instant)

• Buys at current ask price
• Executes immediately
• Pay slightly more for speed
• Use when: You need to enter NOW

Limit Order (Patient)

• Set your maximum price
• Waits for someone to match
• Better price, but might not fill
• Use when: Not urgent, want best price

Step 5: Place the Trade

1. Click on the market
2. Select "Yes" or "No"
3. Choose order type (Market or Limit)
4. Enter number of shares or USD amount
5. Review: Price, fees, potential profit/loss
6. Click "Buy"
7. Approve in MetaMask
8. Wait for confirmation

Step 6: Monitor Your Position

After buying, track:

• Current price: Is it moving your way?
• Unrealized P/L: Paper profit/loss
• News & events: What's affecting odds?
• Exit strategy: When will you sell?

Step 7: Exit Your Position

Option A: Sell Before Resolution

• Take profit if price moved favorably
• Cut losses if prediction was wrong
• Lock in gains before event outcome

Option B: Hold Until Resolution

• Maximum profit if you're right ($1 per share)
• Total loss if you're wrong ($0 per share)
• No action needed, auto-redeems

Your First Trade Checklist

✅ Market has good liquidity
✅ I understand the question
✅ Resolution criteria are clear
✅ Position size is 1-5% of bankroll
✅ I've done my research
✅ I know my exit strategy
✅ Fees are acceptable
✅ I can afford to lose this amount

Common First-Trade Mistakes

• ❌ Trading too large (>10% of bankroll)
• ❌ Chasing obvious favorites (low return)
• ❌ Ignoring liquidity
• ❌ Not reading resolution criteria
• ❌ Emotional decisions
• ❌ Forgetting about fees

Remember: Your first trade is about learning, not maximizing profit!