VOLUME1

THETRADI
NG
BASI
CS

1
NB: ThePDFsar egoi
ngtobei n3v ol
umesf or
easyunderstandi
ngandreferences.Andatthe
endofeachv olume,y
ou'r
egoi ngtohavepop
quizzestotestwhatyou'
velearntsofar
.Brace
yoursel
f.
..
.l
ol

YOU'
VEGOTTHI
S!

2
 CONTENTS
I
ntr
oduct
ion(
tradi
ng101)

 Ty
pesoft
radi
ng

 Whatar
ebei
ngt
raded?

 Tr
adi
ngsessi
ons

 Whoi
sat
radi
ngbr
oker
?

 Char
ts

 Ter
minol
ogi
esi
ntr
adi
ng

3
 I
NTRODUCTI
ON
Whati
str
adi
ng?

Trading,i
nsi
mpleterms,ist
heactofbuyi
ngandsel
li
ngfinanci
al
i
nstrumentsbyspeculat
ingonthei
rpr
icemovement
swithout
dir
ectlyowni
ngthem,inthehopesofmakingapr
ofi
tfr
om
changesinthei
rpri
cemov ements.

I
nrecentdays,
tradi
ngisdoneel
ect
roni
cal
l
y.Thi
scr
eat
esa
numberofbenefi
topti
onssuchas

 Fl
exi
bil
i
ty/
conveni
ence:youcant
radef
rom al
mostev erypar
t
oft
heworldasfarasyou'v
egotr
eli
abl
eint
ernetconnecti
on.

 Easeoft
radi
ng:
youcanmakedecisionsf
reel
ywi
thoutany
i
nter
vent
ionf
rom anyext
ernal
sour
ce.

 Transpar
ency:
ithel
psthei
nvest
orsgetmor
ecl
ari
tyont
he
exactcal
cul
ati
onsfory
ourtr
ade.

TYPESOFTRADI
NG
Intr
adaytr
adi
ng:thisinvolv
esbuy i
ngandsell
ingf
inancial
i
nstrumentswit
hinthesamet radi
ngday.I
ntr
adaytraders
typi
call
ycl
osealltheirposi
tionsbefor
etheendofmar ket,
avoidi
ngover
nightrisks.

4
 Scal
pt rading:thi
si nvolv
esbuy ingandsel l
ingfinancial
i
nstrument swithinashor tperi
odoft i
me, oftenjustseconds
ormi nutes,wit
ht heai m ofmaki ngprofi
tsfrom smal lpri
ce
movement s.Scalpt r
adersorscal persai
mt otakeadv antage
ofshor t
-ter
mf luctuati
onsi nthemar ketandexecut eal arge
numberoft r
adest ocapt uresmal lgai
ns.

 Swingt
rading:
thisi
nvol
vesbuyi
ngandsel l
ingasset
sand
sell
i
ngforafewdaystoweeks.Swingtradersai
mt ocaptur
e
theswi
ngsorpr i
cemovementsthatoccurwithi
nanuptrend
ordowntr
end.

 Posit
iontrading:thi
sisal ong-t
ermt r
adingstrat
egyt hat
i
nvolvesbuy ingandhol dingf i
nanci
alassetsforanext ended
peri
od,typicall
yfrom sev eralmonthstoy ear
s.Positi
on
tr
adersfocusonanal ysingl ongter
mt rendsthatrequires
pati
ence,discipl
ineandr i
skmanagementski l
ls.

WHATAREBEI
NGTRADED?
 For
ex

 Sy
nthet
ics

 Cr
ypt
ocur
renci
es

 St
ocks

 Bonds

5
  Commodi
ti
es.
..
.et
c

 Forex:thiswhi chst andsf orForeignexchangeandal sohas

theshor tform, FX,ist hesimultaneousbuy ingofone
currencyandsel l
ingofanot herwithav olumeofabout$5
tri
ll
iontradedaday .Currenciesaret radedi npairsthrougha
broker;forexampl e(GBP/ JPY)-t heGr eatBr it
ainPound
versustheJapaneseYenor( EUR/ NZD)-t heEur oversusthe
NewZeal andDol lar.Ingener al
,exchanger ateofacur r
ency
versusot hercur r
enci esisar efl
ectionoft hecondi ti
onof
thatcount ry
'seconomy ,compar edt otheot hercountri
es'
economy .Forextradi ngcanbeaf fectedbygl obaleconomi c
newssuchasCPI ,NFP, FOMC, retailsales, i
nfl
ati
on..
.etc.

Whatcur
renci
escanbet
raded?

Fr
om alotofcur
renci
esoutt
her
e,t
her
ear
eei
ghtmaj
oronest
o
betr
aded

 USD-Uni
tedSt
atesDol
l
ar(
Uni
tedSt
atesofAmer
ica)

 EUR-Eur
o(Eur
opeanUni
on)

 JPY-JapaneseYen(
Japan)

 GBP-Br
it
ishPoundorGr
eatBr
it
ainPound(
Uni
tedKi
ngdom)

 CHF-Swi
ssFr
anc(
Swi
tzer
land)

 CAD-Canadi
anDol
l
ar(
Canada)

6
  AUD-Aust
ral
i
anDol
l
ar(
Aust
ral
i
a)

 NZD-NewZeal
andDol
l
ar(
NewZeal
and)

Whencancur
renci
esbet
raded?

TheFXmar
keti
sopen5day
saweek,
Mondayt
oFr
iday
.

Howt
oreadanFXquot
e

Currenci
esarealwaysquot edinpai
rs,
suchasEUR/ USDor
GPB/ AUD.Thereasontheyar equot
edi npai
rsisbecausei never
y
for
eignexchanget r
ansaction,y
ouaresimultaneouslybuyingone
curr
encyandsel l
inganother.Herei
sanexampl eofaf or
eign
exchangeratefortheBri
tishpoundversustheU. S.doll
ar:

GBP/
USD=1.
7539

Thefir
stl
ist
edcurr
encyt othelef
toftheslash("/
")i
sknownas
thebasecurr
ency(
int hi
sexample,theBri
tishpound),
whil
ethe
secondoneontherightiscall
edthecounterorquotecur
rency(
in
thi
sexample,t
heU.S.dollar
).

Whenbuy i
ng,t
heexchangeratetel
lsyouhowmuchy ouhav
eto
payinunit
softhequot
ecurrencytobuyoneunitofthebase
cur
rency.I
ntheexampleabove,youhavetopay1.7539U.S.
dol
larst
obuy1Br i
ti
shpound.

Whenselli
ng,t
heexchangeratetell
syouhowmanyuni t
softhe
quotecur
rencyyougetforsell
ingoneunitofthebasecurr
ency.I
n
theexampleabove,
youwi l
lrecei
ve1.7539U.S.dol
lar
swheny ou
sell
1Brit
ishpound.

Thebasecur
rencyi
sthe“
basi
s”f
ort
hebuyort
hesel
l
.Ify
oubuy

7
EUR/USD,thi
ssimpl
ymeanst hatyouarebuyi
ngt
hebase
cur
rencyandsimul
taneousl
ysell
ingthequot
ecur
rency
.

 Synthetics: t
hesear efinanciali
nstr
ument sthataretr
adedby
i
mi t
atingormi mi cki
ngt hereal-
ti
meFor extradi
ng.Theyarea
setofwr i
ttenalgor i
thm.Unl i
keForex,
they'r
enott r
adedin
pair
s.Theyar eunaf fectedbyglobaleconomi cnewsand
protectsy ouf r
om mar ketri
sks.Notall
tradingbroker
soffer
thi
ski ndofser vice.Thesamet radi
ngknowl edgeusedin
Forexcanal sobeusedf orsynt
heti
cs.

Whatsy
nthet
icscanbet
raded?

 Vol
ati
li
tyi
ndices:vol
ati
l
ity10orV10,v
olat
il
it
y25(
1s)or
V25(
1s),v
olati
li
ty100orV100,etc.

 Jumpi
ndi
ces:
jump25,
jump75,
jump10,
etc.

 Cr
ashi
ndi
ces:
crash300,
crash500,
etc.

 Boom i
ndi
ces:
boom 1000,
boom 500,
etc.

 St
epi
ndexandsomanymor
e.

Whencansy
nthet
icsbet
raded?

Thesynt
het
icmar
ketcanbetraded24hour
soft
hedayand7
daysoft
heweek,
wit
houtrest
rict
ions.

 Cryptocurr
enci
es:thesearetypicallydecent
ral
iseddi gi
talor
vi
r t
ualcurr
enci
esrunonapubl icledgercall
edBl ockchain.
They '
regener
atedthroughapr ocesscal l
edmining.They 'r
e
alsoknownascr yptos.Thegoodt hingi
sthany oudon'thav e
topurchaseorsellanentir
ecry pt
o.Youcant r
adesmal l

8
 fr
act
ionsofit
.Theyaresometi
mesaff
ect
edbyeconomic
news.Othert
imes,
theyareaf
fect
edbywhal
einv
estor
s.

Whatcr
ypt
ocur
renci
escanbet
raded?

Ther
earemor
ethana100cr
ypt
ocurr
enci
escreat
edandt
raded
butafewmaj
oroneswi
l
lbehi
ghl
ight
edbelow

 Bi
tcoi
n(BTC)

 Et
her
eum (
ETH)

 Bi
nancecoi
n(BNB)

 Tr
on(
TRX)

 Ri
ppl
e(XRP)

 Tet
her(
USDT)

 Li
tecoi
n(LTC)

 Sol
ana(
SOL)
..
..
etc

Whencancr
ypt
ocur
renci
esbet
raded?

Thecry
ptocur
rencymarketcanbetraded24hour
soft
hedayand
7daysoftheweek,wi
thoutrest
ri
cti
ons.

 Stocks: i
tisatypeofinvestmentt hatrepr
esentsan
owner shipsharei
nacompany .Inv est
orsbuystocksthat
theythinkwillgoupinvalueov ertime.Examplesof
compani esthatpeopl
et radetheirstocksareGoogle,
Starbucks,Apple,
Netfli
x,MTNandsomanymor e.

 Bonds:
abondi
saf
inanci
ali
nst
rumentt
hati
nvol
vesl
endi
ng

9
 moneytoani
nstit
uti
onforaf
ixedperi
odofti
me.Borr
owers
i
ssuebondst
or ai
semoneyfrom i
nvest
orswi
ll
ingt
olend
t
hem moneyforacert
ainamountofti
me.

 Commodi ties:acommodi t
yhasmonet ar
yutil
i
tyandis
consider
edaphy sicalasset.Commodityexamplesinclude
thosethatpluckedf rom thegroundandthosethathav eto
bedugupf rom deepunder ground.Ty
picalcommodities
i
nclude:crudeoil,gold,si
lver,
etc.

TRADI
NGSESSI
ON(
FOREX)
Thefor exmarketisopen24hour sadaydur i
ngt heweekday s
whichal l
owstraderstopot ent
iall
ytr
adeall dayandal lnight.Just
becausey oucant radethemar ketanyti
meoft hedayorni ght
doesn'tnecessari
lymeant haty oushould.
..
.LOL.Thebestt i
met o
tr
adei swhent hemar keti
sact i
v ewit
hlotsoff orextr
ader s
openingandcl osi
ngposi t
ions,whichcreatesal argevolumeof
tr
ades.

Theforexmar ketcanbebr okenupintofourmaj ortr

ading
sessi
ons:theSy dneysession,t
heToky osession,theLondon
sessi
on,andt heNewYor ksession.Thetradingsessionsbel
ow
havebeenconv ertedt
oNi geri
anti
mezonef oreasy
under
standing.

10
  TheSy
dneySessi
on:
9PM t
o6AM

 TheToky
oorAsi
aSessi
on:
1AM t
o10AM

 TheLondonSessi
on:
9AM t
o6PM

 TheNewYor
kSessi
on:
2PM t
o11PM

WHOI
SATRADI
NGBROKER?
Insimpl estterms,abr okeri
sani ndividualoracompanyt hat
buysandsel lsordersaccordingtot hetrader'
sdecisions.Brokers
earnmoneybychar gingacommi ssionoraf eeforthei
rservices.
Theyal soser veasintermediari
esf ordeposi t
sandwi thdrawals.
Therear elotsofbr okersoutthere.Butpl ease,st
ayawayf r
om
non-regulatedfir
ms!

Theoneslist
edbel
owar
esomeofthefewreli
abl
eandr
egul
ated
broker
sthathav
ebeeni
noper
ati
onforyear
s.

 Der
iv

I
CMar
ket
s

 Hot
For
ex

 Av
aTr
ade

 XM For
ex

 Exness

11
 CHARTS
Achartissi
mplyav i
sualrepr
esentat
ionofahi
stori
caldat
aor
behavi
ourofpri
ce,varyi
ngacrossdif
fer
entt
imeframes.Any
fi
nanci
alassetwit
hpr i
cedataoveraperi
odofti
mecanbeused
tofor
m achartforanaly
sis.

Chartsar
euser -
fri
endl
ysi nceit
’sprett
yeasytounderst
andhow
pr
icemov ementsar epresentedovertimesincei
t’
ssooooovisual
.
Withachart,i
tiseasytoident i
fyandanaly
zeacurrencypai
r’
s
mov ements,
patterns,
andt endencies.

Onthechart
,they -
axi
s( ver
ti
calaxis)r
epresentsthepri
cescale
andthex-
axis(hori
zontalaxis)r
epresent
st hetimescal
e.Prices
arepl
ott
edfrom leftt
orightacrossthex-axis.Themostrecent
pri
ceispl
ott
edf urt
hesttother i
ght
.

Ty
pesofpr
icechar
ts

12
 Li
nechar
t:Asi
mpleli
nechartdr
awsal
i
nef
rom onecl
osi
ng
pr
icet
othenextcl
osi
ngpri
ce.

 Barchar t
: Abarchartalsoshowscl osingpr i
ces, while
simul t
aneousl yshowi ngopeningpr ices,aswell ast hehighs
andl ows.Thebot tom ofthev ert
ical bari
ndicatest helowest
tradedpr iceforthattimeperiod,whi lethetopoft hebar
i
ndi catest hehighestpricepaid.So, theverti
calbari ndicates
thecur rencypai r’
str
adingrangeasawhol e.Thehor i
zontal
hashont hel eftsi
deoft hebarist heopeni ngprice, andthe
ri
ght -
sidehor izontal
hashi sthecl osingpri
ce.

13
 Candlest
ickchart
:Candlestickchar t
sshowt hesame
i
nf or
mationasabarchar t,buti naprett
ier
,graphicf
ormat.
Candlest
ickbarssti
lli
ndicatet hehigh-
to-l
owr angewit
ha
verti
call
i
ne.Howev er,
incandl esti
ckcharti
ng,thelar
gerbl
ock
i
nt hemiddleindi
catesther angebet weentheopeningand
closi
ngpr i
ces.

14
 TERMI
NOLOGIESI
NTRADI
NG
(
GLOSSARY)
 Financi
alinst
rument
s:theyarecontract
sformonet
ary
assetsthatcanbepurchased,t
raded,cr
eated,
modif
ied,
or
settl
edfor.

 Posi
ti
on:thi
sist
hetot
alamountofmoneyownedbyan
i
ndiv
idual
whot r
adest
hepri
cemov ementofaf
inanci
al
i
nstr
ument .

 Risk:
thi
sisthepossi
bil
i
tyt
haty
ou'
l
llosesomemoneyon
yourtr
ades.

 Pr
ofi
ts:
thesear
etheear
ningsgener
ated.

 Fl
uctuati
on:t
hisisasit
uati
onwherepri
cesgoupanddown
ar
oundacer t
ainrangeofpri
cesforaper
iodofti
me.The
marketswherethi
soccursarecal
ledr
angingorchoppy
markets.

 Asset
:iti
sthev
alueofowner
shi
pthatcanbeconv
ert
edi
nto
cash.

 Swi
ngs:al
soknownswi
ngt
rades,
areposi
ti
onshel
dfor
l
ongert
hanasingl
eday
.

 Upt
rend:t
hisi
sthepri
cemovementofaf
inanci
alasset
whentheover
all
dir
ecti
oni
supward.

 Downt
rend:
thi
sisthepri
cemov ementofaf
inanci
alasset
whent
heoveral
ldi
rect
ionisdownward.

15
 Broker
:iti
sanauthori
zedi nt
ermediar
ybetweenthosewho
wanttomaketradesandi nvestandtheexchangei
nwhich
thosetr
adesar
epr ocessed.Itcoul
dbeaper sonora
company .

 CPI :theConsumerPr i
ceI ndex(CPI)isamont hl
ymeasureof
thechangei npricespaidbyconsumer sforgoodsand
servicessuchasf ood,energy,housing,cl
othing,
transportat
ion,
medi calcare,ent
ertainment,andeducat
ion.

 NFP:theNon-
Far
m Payr
oll
s(NFP)i
sasigni
fi
cantmonthl
y
repor
twhichi
sact
ual
lypar
toftheempl
oymentsit
uat
ionin
America.

 Ret
ail
sales:
iti
sameasureconsumerdemandby
cal
cul
ati
ngthetot
algoodssol
doveragiv
enper
iod.

 FOMC: t
heFederalOpenMarketCommi tt
ee(FOMC)
meetingsareimportanttof
orextradersbecauset
hisi
s
whent heFederalReserv
e,t
hecent r
albankoftheU.S.
,
announcestheirdeci
siononint
erestrates.

Inf
lat
ion:
thisi
stheri
seoft
heoveral
lpr
icesofgoodsand
servi
cesoveracer
tai
nperi
odi
ntime.

 Decentr
ali
sedmarket
:adecentral
i
zedmarketal
l
owstrader
s
totr
adedirect
lywi
thothers,
wit
houtt
heneedforacentr
al
ownershi
psuchasgov ernment
.

 Ledger:
thisisthebookorcomputerf
il
eforr
ecor
dingand
tot
ali
ngtransacti
onsbyaccount
.

 Bl
ockchai
n:i
tisadi
str
ibut
ed,
immut
abl
e,anddecent
ral
i
zed

16
 l
edgerati
tscoret
hatconsist
sofachai
nofbl
ocksandeach
bl
ockcontai
nsasetofdata.I
tcr
eat
esroom f
or
tr
anspar
ency.

 Mini
ng:cr
yptocurr
encyminingreferstothepr ocesswherea
gl
obalnet
wor kofcomputersrunningthecryptocurrency
codeworktoensurethattr
ansactionsarelegiti
mateand
addedcor
rectl
ytothecryptocur
rency’sblockchain.

 Whale:awhal
eisabigholderofcr
ypt
o,andusuall
yhavea
subst
anti
alamountofcapi
tal
.Basi
cal
ly,
they
’rer
ichhh

 Bidpri
ce:i
tisthepr
iceaf
orext
raderi
swi
l
li
ngt
osel
la
curr
encypairf
or.

 Askpri
ce:i
tist
hepr
icei
sthepr
iceat
raderwi
l
lbuya
cur
rencypai
rat
.

 Spr
ead:
thi
sist
hedi
ff
erencebet
weent
hebi
dandaskpr
ices.

 Long:
togol
ongmeanst
obuy
.

 Shor
t:t
ogoshor
tmeanst
osel
l
.

 Bul
lmar
ket
:thi
siswhenpr
icesar
eont
her
ise.

 Bearmar
ket
:thi
siswhenpr
icesar
eindecl
i
ne

 Pip:
thePri
ceInt
erestPoi
nt(PI
P)i
sauni
tofmeasur
ement
toexpr
essthechangeinval
uebet
weent
wocur
renci
es.

 Lotsi
ze:
iti
sauni
tmeasur
ingat
ransact
ionamount
.

 Mar
gincal
l
:thi
sisademandfrom yourbrokert
oincr
ease
t
heamountofequi
tyi
nyouraccount.Thi
soccurswhena

17
 mar
ginaccountr
unsl
owonf
unds,
usual
l
ybecauseofa
l
osi
ngtr
ade.

 Takeprof
it
:Itt
ell
syourbrokerhowmuchy ouarewil
l
ingt
o
makeasapr of
itwit
honet radeandclosei
toncey
ou'r
e
happywit
htheamount.ItisalsoknownasTP.

 Stopl
oss:
Itt
ell
syourbrokerhowmuchy ouar
ewil
li
ngt
or
ri
skorl
osewit
honetrade.Iti
salsoknownasSL.

 Li
mitor
der:
alimi
torderi
sanordert
obuyorsel
laf
inanci
al
i
nstr
umentataspeci
fi
cpri
ce.

 Lev
erage:i
tishavi
ngt
heabi
li
tyt
ocontrol
alar
geamountof
moneyusingnoneorv
eryl
it
tl
eofyourownmoneyand
bor
rowingtherest
.

 Margin:i
tist
heamountofmoneyneededasa“
goodf
ait
h
deposit
”toopenaposi
ti
onwit
hyourbroker
.

 Commissi
on:t
hisserveascompensationfort
hebr
okerf
or
thet
imeandeff
ortspentfaci
l
itat
ingt
hetrade.

 Equit
y:t
hisr
epr
esent
sthecur
rentv
alueofy
ourt
radi
ng
account
.

 PnL:Prof
itandLoss(
PnL)canbeusedtodescr
ibet
he
changeintheval
ueofatr
ader'
sposi
ti
ons.

 Bal
ance:
thi
sist
hest
art
ingv
alueofy
ourt
radi
ngaccount
.

Ther
ear
eawhol
ebunchoft
ermi
nol
ogi
esnotl
i
stedher
e.But

18
don'
tyouwor
ry,
you'
l
llear
nmor
eaboutt
hem aswegof
urt
her
.

19