Welcome You can find in this course those topics Demolish myths about trading Determine what kind of trader you are and you could become Identify where you can invest Identify the most used tools to trade Choose what method of trading is better for you You can find the course explained step by step in this link http ://bit.ly/1X5q78T
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WelcomeYou can find in this course those topics
Demolish myths about trading Determine what kind of trader you are and you could become Identify where you can invest Identify the most used tools to trade Choose what method of trading is better for you
You can find the course explained step by step in this linkhttp://bit.ly/1X5q78T
¿Why should you trade? Does not matter who you are If the economy is good or bad, you can win Manage your own money Manage your time You can invest few hours Technology facilitates everything Earn more money with less You are better everyday You can automate your strategy It is a lifetime profession
Kinds of investmentFOREX Foreign Exchange market The biggest market in the world Very liquid market Big leverage (1:100; 1:200; to 1:500) It Works 5 days a week, 24 hours Operate the most important currencies (Euro- dolar,
Dólar – Japanese yen, etc.)
Stocks
Part of a company You have rights (vote, dividends, etc.) The liquidity depends on the stock Lower leverage (1:50) Operate few hours a day. It depends on the market
the stock belongs.
Derivatives
The value depends on the Price of one asset Stocks, Stock indexes, commodities, currencies There are 4 kinds of derivatives (Futures, options, forwards
and swaps)
Forwards and swaps are private contracts between two organizations or people
But people only invest in two marketsFutures and options
Futures
Contract that obligates to buy or sell an asset over a period of time
It is a standard contract Contracts of commodities, currencies, indexes, stocks,
etc. Centralized Mechanism of negotiation It is a regulated market A huge leveraged market Special to day traders
Options
Contract where you have the option to fulfill it You have to pay a bonus to buy the contract If you do not fulfill the contract, you only pay the bonus It is a standard contract Contracts of commodities, currencies, indexes, stocks,
etc. Centralized Mechanism of negotiation It is a regulated market It is a difficult market to learn
Binary options
Contract with a fixed return You must choose the price direction of an asset If you win, you get the profits. Otherwise, you can lose
a part of your investment Operate in a OTC (over the counter) market It is a regulated market It is so easy to operate
Penny stocks
Stocks of new companies. Those stocks cost less tan 1 dollar
Very volatile stocks The Price stock can duplicate or triple the value in a
short time Default risk Risk of bankruptcy
Kinds of tradingFundamentalYou must find the intrinsic value of an asset using
Financial statements Economic forecasts Assessment of a company
Technical Look for graphic patterns Use of indicators and formulas The Price includes everything
Psychological
Looking read what is happening in the market through the behavior of investors.
Kinds of tradersScalpers Operations of seconds or minutes Use of technical and psychological analysis You can operate few hours a day
Day trader Operations of few hours in the same day Use of technical analysis Operate all day long
Swing trader Operations of days and weeks Use of technical, psycholoogical and at least fundamental
analysis
Position trader Long term investor. Operations of years Use of fundamental analysis Huge risk market
¿What dominates the market?The market is dominated for 3 factors
Hope The wish that you made the right decision
Fear Insecurity of making a bad decision
Avarice Unconsciousness to make a good decision
Most investors have reasonMost is not the number of investors. Most is the number of big investors (banks, institutions, countries, etc.)
Most investors produce the change of a trend The oscillations are produce by small investors The trend strength can be reinforced by fear and avarice of
small investors Psychological trading looks for reading the behaviour of the
big investors
Candlestick
Technical analysis works in every time frame
Support and resistanceSupport
Level where you can find more buyers than sellers of assets
Then the Price direction changes from a decreasing to a increasing market in a time frame
It is not a line. It is a zone If this level is touched several times. This support
becomes stronger
Support example
Resistance
Level where you can find more sellers than buyers of assets
Then the Price direction changes from a increasing to a decreasing market in a time frame
It is not a line. It is a zone If this level is touched several times. This resistance
becomes stronger
Resistance example
TrendBullish trend Higher peaks and valleys More buyers tan sellers A bullish movement is slower thana bearish movement
Bearish trend Lower peaks and valleys More sellers tan buyers A bearish movement is faster thanA bullish movement
Sideways trend Peaks and valleys at the same height Indecision in the market Investors are expecting which direction take the market
Reversal patternsDouble top or botton Triple top or botton
Head and Shoulders
Bearish head and shouldersBullish head and shoulders
Recommendations
Search the rules governing financial markets in your country
Do not invest more money than you can lose Not mortgage your house, or sell everything Practice first on demo accounts This is funny and profitable way to get money Training is the key to success
The most important
The best strategy to trade depends on the kind of trader you are or you would like to be.
Keep the strategy simple
You can find the course explained step by step in this link