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[Audio] The Complete Noob’s Guide to Trading Like a Pro.

[Audio] T INTRODUCTION UNDERSTANDING FINANCIAL MARKETS 4 BASICS OF TRADING 5 FUNDAMENTAL ANALYSIS 6 TECHNICAL ANALYSIS 7 RISK ANALYSIS AND MANAGEMENT 8 TRADING PLATFORMS AND TOOLS 9 TRADING STRATEGIES 10 PUTTING ALL TOGETHER 11 Table of contents.

[Audio] INTRODUCTION Trading refers to the buying and selling of financial instruments, such as stocks, bonds, commodities, currencies, and derivatives, with the aim of making a profit. Traders engage in trading activities in various financial markets, such as stock markets, forex (foreign exchange) markets, commodities markets, and more..

[Audio] UNDERSTANDING FINANCIAL MARKETS 1. Overview of Financial Markets ● Financial markets are platforms where buyers and sellers trade financial instruments like stocks, bonds, currencies, and commodities. 2. Key Participants ● Investors buy and hold assets for the long term, while traders engage in more frequent buying and selling. Distinguishing between these roles is crucial for understanding market behavior. ● Brokers facilitate transactions between buyers and sellers, while dealers buy and sell securities for their own accounts. Both play pivotal roles in market liquidity. 3. Market Structure ● Primary markets involve the issuance of new securities, while secondary markets facilitate the trading of existing securities among investors. Understanding this distinction is fundamental to comprehending market functions. ● Exchange-traded markets (like stock exchanges) have centralized locations, while over-the-counter (OTC) markets involve decentralized trading directly between parties. Both have unique characteristics. 4. Market Dynamics ● Supply and demand in financial markets: Prices in financial markets are driven by the fundamental economic principles of supply and demand. Understanding how these forces interact helps predict market movements. ● Factors influencing market movements: Economic indicators, geopolitical events, and investor sentiment are among the myriad factors impacting market dynamics. Analyzing these factors is essential for successful trading. 5. Retail Traders vs. Institutional Traders ● Retail traders are individual investors often seeking capital appreciation, while institutional traders, such as hedge funds and mutual funds, manage large sums of money on behalf of clients..

[Audio] ● Retail traders collectively contribute to market activity, but institutional traders' substantial transactions can significantly influence prices. 6. Market Makers and Liquidity Providers ● Market makers facilitate trading by providing liquidity, quoting both buy and sell prices. They profit from the bid-ask spread. ● Liquidity is the ease with which an asset can be bought or sold without affecting its price. Adequate liquidity is crucial for market stability and efficiency. 7. Hedgers and Speculators ● Hedgers managing risk: Companies may hedge against price fluctuations by using financial instruments. Understanding hedging strategies is vital for comprehending market dynamics. ● Speculators assume market risks with the goal of making a profit. Their activities contribute to price discovery and market efficiency. 8. Regulatory Framework ● Overview of regulatory bodies: Securities and financial markets are regulated by government bodies to ensure fairness, transparency, and investor protection. ● Importance of regulations: Regulations maintain market integrity, prevent fraud, and foster confidence among investors. Understanding the regulatory environment is crucial for navigating markets..

[Audio] BASICS OF TRADING The main goal of trading is to make profit by capitalising on price movements in the market.some terms / key concepts traders should be familiar with : Risk management: This refers to techniques that traders use to limit their downside risk and losses.Proper risk management is crucial for long term success. As a beginner it's better you should start small and practice with a demo account to gain experience before trading with real money. Market Dynamics : Supply and demand in financial markets: Prices in financial markets are driven by the fundamental economic principles of supply and demand. Understanding how these forces interact helps predict market movements. Factors influencing market movements: Economic indicators, geopolitical events, and investor sentiment are among the myriad factors impacting market dynamics. Analysing these factors is essential for successful trading. Strategies: There are many different strategies that traders can employ depending on their goals,risk tolerance and preferred frames .Some strategies are as follows : Trend Following - this involves identifying assets in an upward or downward trend and trading in the direction of that trend.Traders look for trends that have momentum to persist over time.Trend following strategies work best in strongly trending markets. Scalping- This refers to making many small profits from small,short-term price movements.Scalpers attempt to take advantage of small fluctuations in price,often holding positions for just seconds or.

[Audio] minutes.This requires discipline ,focus and a good understanding of intraday price action. Day trading - Day traders open and close positions within the same trading day,usually within minutes or hours.They attempt to profit from short-term price swings and news events.Day trading requires a significant time commitment and the ability to manage multiple open positions at once. Swing trading - Swing traders hold positions for days ,weeks or even months to benefit from medium-term price swings . they attempt to identify assets with strong momentum that are likely to continue their current trend . options trading - options trading can offer high leverage and lower capital requirements compared to stock trading .however it involves higher risks and complexity. MARKETS: They are two main markets which are stocks and options : Stocks represent partial ownership in public companies .Stock trading involves buying low and selling high as a company's fortunes change. options are derivative contracts that give the right to buy or sell the underlying stock at a specified price.options offer leverage but involve additional risks. Key terms: Familiarise yourself with important trading concepts and terminology : Premium: The price of an option contract. Strike price:The price at which the option can be exercised. Expiration date : The last day an option can be exercised..

[Audio] 8 Leverage :The use of borrowed capital to increase the potential return of an investment. Stop loss:An order to sell a position when it reaches a certain price to limit losses. STRATEGIES Focus on simple strategies first that match your risk tolerance: Buy-and-hold:purchase stocks of strong companies and hold for long term gains. Swing trading : buy stocks with momentum and sell within weeks or months. Covered calls : sell call options against stocks you already own for extra income . With diligent study and practice trading small amounts at first,can gradually develop the knowledge and experience needed for more complex strategies over time.but always maintain prudent management and a plan for limiting losses on any given trade. FOREIGN EXCHANGE (FOREX) MARKETS: The foreign exchange market, or Forex, is a decentralised global marketplace for trading currencies. It's the largest and most liquid financial market in the world, where participants can buy, sell, exchange, and speculate on the value of different currencies. The primary purpose of the Forex market is to facilitate international trade and investment by enabling businesses and investors to convert one currency into another. HOW FOREX WORKS: Currency Pairs:.

[Audio] In Forex trading, currencies are traded in pairs. A currency pair consists of a base currency and a quote currency. The value of the pair represents how much of the quote currency is needed to purchase one unit of the base currency. Exchange Rates: The exchange rate is the price of one currency in terms of another. It's influenced by various factors, including economic indicators, interest rates, geopolitical events, and market sentiment. Bid and Ask Prices: The bid price is the maximum price a buyer is willing to pay for a currency pair, while the ask price is the minimum price a seller is willing to accept. The difference between the two is known as the spread. Market Participants and Transactions: Participants enter the Forex market to either buy or sell a currency pair. For example, if a trader believes the value of the euro will rise against the US dollar, they would buy the EUR/USD pair. Leverage and Margin: Forex trading often involves the use of leverage, allowing traders to control a larger position with a smaller amount of capital. However, this also increases the risk of significant losses. FACTORS INFLUENCING EXCHANGE RATES: Economic Indicators: GDP, employment rates, inflation, and other economic indicators impact a country's currency strength..

[Audio] Interest Rates: Central banks' decisions on interest rates influence currency values. Higher interest rates attract foreign capital and can strengthen a currency. Political Stability and Economic Performance: Countries with stable political environments and strong economic performance tend to have stronger currencies. Market Sentiment: Traders' perceptions and emotions can influence short-term currency movements. Geopolitical Events: Events like elections, trade agreements, and geopolitical tensions can impact currency values. FOREX TRADING STRATEGIES: Technical Analysis: Analyzing historical price charts, patterns, and technical indicators to predict future price movements. Fundamental Analysis: Examining economic, political, and social factors to forecast currency movements based on a country's overall economic health. Sentiment Analysis:.

[Audio] 11 Assessing market sentiment through indicators like the Commitment of Traders (COT) report. READING FINANCIAL CHARTS AND QUOTES . Types of Charts: Line Charts: Display the closing prices over a set period, providing a simple overview. Bar Charts: Illustrate the high, low, open, and close prices for a specific period. Candlestick Charts: Similar to bar charts but visually represent market sentiment through candlestick patterns. Candlestick Patterns : Candlestick patterns are one of the most powerful trading concepts, they are simple, easy to identify, and very profitable setups. Research has confirmed that candlestick patterns have a high predictive value and can produce positive results. If you know how to read candlestick patterns the right way, you will be able to understand what these patterns tell you about the market dynamics and the trader’s behaviour. The Engulfing Bar Candlestick Pattern : The Engulfing bar as it states in its title is formed when it fully engulfs the previous candle. The engulfing bar can engulf more than one previous candle, but to be considered an engulfing bar, at least one candle must be fully consumed. The bearish engulfing is one of the most important candlestick patterns. This candlestick pattern consists of two bodies: The first body is smaller than the second one, in other words, the second body engulfs the previous one..

12. This is how a bearish engulfing bar pattern looks like on your charts, this candlestick pattern gives us valuable information about bulls and bears in the market …………CONTINUATION IN PART 2.

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