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MENTORING - Trading - Introduction - Coggle Diagram
MENTORING - Trading - Introduction
Fundamentals -
(a) company fundamentals;
(b) stock fundamentals; (c) market fundamentals
Technicals -*
(a) one touch; (b) two touch; (c) three touch
*
Market Profile -
(a) introduction; (b) basics; (c) day types; (d) open types; (e) market structures; (d) advanced concepts
Orderflow -
(a) basics; (b) VWAP
General -
(a) financial institutions; (b) financial instruments
Risk and money management -
(a) risk management, R methodology; (b) money management, position sizing and capital allocation
In both trading and investing, we buy and sell shares or futures and options.
Stocks are called the cash segment, while futures and options are called the derivatives segment
Stocks (cash) and derivatives are always not perfect. They keep on moving all the time, unlike the price of Maggi.
A market is a place where buyers and sellers meet to transfer goods or services in exchange of money. Every business survives in a market because of only this concept - buying and selling.
A market is formed when a price is formed between a buyer and a seller.
For a market to form or a price to form, a buyer and a seller SHOULD AGREE ON A PRICE.
Not all prices move. Some prices are stagnant, while others move a lot. This is what we call as volatility.
But in a stock market, prices are moving all the time as buyers and sellers keep fighting for the right price, which is never attained.
It is very tough to understand the reason behind the price moves in a stock market because they are driven by human psychology.
In any market, demand and supply keeps changing. That is when prices keep changing, as human psychology also keeps changing.
Why does human psychology change when they are buying and selling. It happens when there is a discrepancy. That means when a seller or a buyer sees a discrepancy or an advantage, the prices keep moving.
If there is a discrepancy in information provided by the seller or buyer, there is an opportunity.
Information disadvantage creates a discrepancy in a market.
This course will help you to fill the gap, called information disadvantage, which creates a discrepancy. That is how you avoid risk in the market, which is brought by a discrepancy.
By learning about that information, risk is not totally avoided. However, we can minimise the risk to a great extent.