basics of trading for begineers

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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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Page 1: Basics of trading for begineers

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

Page 2: Basics of trading for begineers

¿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

Page 3: Basics of trading for begineers

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.)

Page 4: Basics of trading for begineers

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.

Page 5: Basics of trading for begineers

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

Page 6: Basics of trading for begineers

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

Page 7: Basics of trading for begineers

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

Page 8: Basics of trading for begineers

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

Page 9: Basics of trading for begineers

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

Page 10: Basics of trading for begineers

Kinds of tradingFundamentalYou must find the intrinsic value of an asset using

Financial statements Economic forecasts Assessment of a company

Page 11: Basics of trading for begineers

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.

Page 12: Basics of trading for begineers

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

Page 13: Basics of trading for begineers

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

Page 14: Basics of trading for begineers

¿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

Page 15: Basics of trading for begineers

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

Page 16: Basics of trading for begineers

Candlestick

Technical analysis works in every time frame

Page 17: Basics of trading for begineers

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

Page 18: Basics of trading for begineers

Support example

Page 19: Basics of trading for begineers

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

Page 20: Basics of trading for begineers

Resistance example

Page 21: Basics of trading for begineers

TrendBullish trend Higher peaks and valleys More buyers tan sellers A bullish movement is slower thana bearish movement

Page 22: Basics of trading for begineers

Bearish trend Lower peaks and valleys More sellers tan buyers A bearish movement is faster thanA bullish movement

Page 23: Basics of trading for begineers

Sideways trend Peaks and valleys at the same height Indecision in the market Investors are expecting which direction take the market

Page 24: Basics of trading for begineers

Technical indicators

Trend indicators Moving average

Page 25: Basics of trading for begineers

Indicators of Momentum

Page 26: Basics of trading for begineers

Volatility indicators

Bollinger Bands

Page 27: Basics of trading for begineers

Indicators of volume

Page 28: Basics of trading for begineers

Continuation patternsTiangles

Ascending triangleSymmetrical triangle Descending triangle

Page 29: Basics of trading for begineers

Flags

Bearish flagBullish flag

Page 30: Basics of trading for begineers

Reversal patternsDouble top or botton Triple top or botton

Page 31: Basics of trading for begineers

Head and Shoulders

Bearish head and shouldersBullish head and shoulders

Page 32: Basics of trading for begineers

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

Page 33: Basics of trading for begineers

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

http://bit.ly/1X5q78T