Trading 101: Forex, Stocks, ETFs & Strategies | Gideon T | Skillshare

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Trading 101: Forex, Stocks, ETFs & Strategies

teacher avatar Gideon T

Watch this class and thousands more

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Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Watch this class and thousands more

Get unlimited access to every class
Taught by industry leaders & working professionals
Topics include illustration, design, photography, and more

Lessons in This Class

8 Lessons (30m)
    • 1. Introduction

      1:47
    • 2. Key Terminology (Part 1)

      5:53
    • 3. Key Terminology (Part 2)

      4:44
    • 4. Trading Instruments: Forex

      1:38
    • 5. Trading Instruments: Stocks and ETFs

      2:55
    • 6. Reading Candlestick Charts

      3:36
    • 7. Trading Strategies

      7:34
    • 8. Recap & Class Project

      1:50
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About This Class

Learning investing and trading can be daunting, but nevertheless rewarding. This course has been designed for beginners to better understand the world of investing/trading, covering the following:

  1. Key terminology
  2. Trading Instruments: Forex
  3. Trading Instruments: Stocks and ETFs
  4. Reading Candlestick Charts
  5. Trading Strategies (an overview of technical/fundamental analysis and factors to consider in adopting a trading strategy)

No prior knowledge is required. By the end of the course, you would know how trading works, and what you need to succeed in it.

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Gideon T

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Transcripts

1. Introduction: everyone. Welcome to treating 1 to 1. Here's across all of you. Introduction. So the construction is as follows. Are we going to some key Come non jeet? But how about understanding the jargon and all the words terms really treating? Um, how into UT forex markets? What stops and eat eggs are and have you issue had to be interstate trucks population I'll give a brief overview on treating strategy, a different analytical methods and factors to consider in choosing our trading strategy. So, Eddie so this causes really meant for people who are new to treating who are trying to understand what training is all about. I'll be developing across later one to focus just on treating strategies to have really jump right in the tree. So before I start, I want to give a shot self introduction. So you know where I am. So I began. Oh, and he nearing the end of high school, I began to realize that in university tuition, debt, Mr Something, uh, there's not very pleasant, and I wanted to find a way to be able to make a stand amount money over a pair of time to pay off my student tuition fees in key in the case that I don't get a scholarship, and that set me starting to find out ways to make money online and don't caught me to treating. And I have spent quite some time since then studying a body, studying the markets, studying how the trade and I'm slowly became active trader myself, shootings and making profits over kept told that I have some small kept happening, I hope that this cost will be able to similarly allow a learning about you, too. I understand what treating is and ultimately jump right in and really enjoy it. 2. Key Terminology (Part 1): Welcome to the first lesson on discourse. Trading one No. One. We'll be xiang few about key terminology. Okay, so I wanted to share about technology first, because I realized that I love new treatise across the street and a lost due to the huge amount of jargon related to the trading field. So I first want to share view the meaning off shot cell in bearish. So if I'm a trader and I see I have a shot position or I sell, it didn't stop. It means that I predict for its price to decrease over time, and I'll make money. The price off the stock body for for its currency pair decreases over time, and we call a person who has a shop position bearish or having a bearish sentiment. Conversely, if I'm a trader and I long the stock a buy a stock, it means that I believe it's price will increase over time. I see value in it, and this and such a person is, will be described as being bullish or having a bullish sentiment. Okay, so now let's talk about ask and bit spread and commission. Okay, so here you can see some life off for X quotes, you can see a column called Ask in a column called Bit So basically, think of it this week when you want to buy something you want by it and Lewis price possible. And when you sell something, you want to sell it at a highest price possible. It's how the market works, right? So the ask price is the price that the sellers are willing to sell it. So consider is higher for you. D. C 80 at the ask price is 0.93976 which is higher than the big price off 0.93816 meaning any bias one by this price level, and the sellers want to sell it at a higher price level. So the difference between the ask and a bit price is called the spread. So say if I want to. If I buy the BCG, Carnesi pay now will be buying it at 0.93976 But if I sell it immediately, I will have to sell it at this price, and I'll be losing a certain amount of money just off the bed like that. Uh, and it isn't on my knees to spread. Okay, So while I'm not the for for for the forex market, most bookers don't usually charge a commission. And how do you make money is true? The spread, the difference between the bid and the ask price increase it a little, come back to the actual market spreads, but for stocks and E. T s. Usually he brokers make money by charging you a commission. And here we can see the conscience structure off. A particular broker called for someone you can see that is 0.8% off. Whatever treaty making what does this mean for treater basically means that for commission structures, especially adores with a minimum charges such as $8.80? Uh, it basically means that it is more favorable to people with, uh, certain amount of capital this because, say, in extreme case, where I only I only invest tenderness and to buy a particular stock $8.80 in nearly will be passed on to the broker. Support has processing fee, and I'll be Emily are losing in dollars 80 cents off my $10 investment, so it makes more sense so I only should invest. My capital is large enough. Such that d um, 0.8% off my tree would be about $1.80 Ohio gay. So now that I've talked about this, I will be sharing few about volatility, volume and liquidity. So what is volatility? Volatility basically is. The is a term that helps to describe how fast the price price levels off the set and stock currency pays changing. So if if the price is increasing and decreasing by huge amounts, uh, we call the currency pay Audie um stock volatile, volatile. Meanwhile, volume refers to the trade volume are maybe a total value off the treats that is taking place during that day. Or and usually this can be seen in bye bye charts any bottom off the bottom off general charts. And we've Paula Bachar suggesting higher treating volumes. So this particular one is showing the Tesla stock Tesla shares. And, as you can see for Bitcoin, similarly, uh, the trading volume is shown at the bottom. You can see a huge spike in trading volume, um, leading up in 2017 where you know where there's a lot of Russell off news on Bitcoin in. Many people got into it, and it decreased after that after a crash states crash, he liquidity. Meanwhile, eyes linked to volume liquid market Means describes the market where you can you can sell and buy or things very easily because there are many causes, a huge volume in a huge number of people who are buying and selling at that point in time and volumes actually related to volatility. In some ways, there's because, you know, when you have a high volume of treats and you're all selling or buying, um, the stock currency pay, it will cost the the price to shift dramatically in one direction by the same time, if you have ah, large for you. But the number of bytes and sell orders Rafidah seem any, the price level would not be volatile. It'll be quite stable. 3. Key Terminology (Part 2): Okay, so now shave. You stop plastic profit and trailing stop loss. We'll use this to help you visualize So you enter. He treated at this price level and you enter a selling fruit means to predict de price will go down. You can put a tick profit level meaning that the true automatic automatically close for you . You don't have to manually close it. If the price decrease us and hits you take profit level, he Boco Immediately closer trip for you and you make this amount of money at the same time . Similarly, you can put a fix stop loss, meaning that if the a price level I didn't go in accordance your fever and say it increased once it hits this level to stop loss level, the treatment close and you'll cut your losses there. So now sheriff, you about trailing Stop loss are this. It's not offered by all broke us, but basically while profit and stop loss are fixed levels trailing, stop loss is level that can move and is defined with respect to the current price levels. So, for example, for forex currency pair see, I want to buy a 0.9000 I enter, you treat at this value and I put my take profit. It's 0.50 and the trailing stop loss At 0.10 old 10 pips Sandy price increases to 0.9040 by 40 pips so it hasn't hit my take profit yet. So you treat that's not close automatically. Um but given it, my trailing stop loss is 10 pips Oh, our 10 0.10 less than the current price levels. It means that, uh, trailing stop loss has now increased to 0.9030 So see, litter the the price off the currency pair decreases You know, um and his open eyes on trees room Then the truth will automatically close. So basically trailing stop loss and see it's a moving position, basically Ah, moving level while the take profit and stop profit are fixed. So now sheriff, you about leverage and margin. So leverage and margin is really used in you will forex small rather than started it? Yes, it is because starts and E T s can increase and decrease by a huge percentage points while the unity Carsey buying the rates for currencies are usually much more stable in terms off the percentage points. So to increase the the amount of one or you lose, given a small amount of change used average margin. So when I see it as a oneness to tender, which I'm using a oneness to tender, which it sort of means that I am say, I'm investing $100 to buy a seven currency pair in forex. But if I wanted to attend the region means that it is as if I'm investing 10 times a mono Invest so $1000 eso when he did the other $9000 come from so the other $9000 has bean sort off brute from the broker. And because of that, I have to pay a four ah small financing fee for the amount I borrow Beast on the among. Off time I borrowed it for which is basically the amount of time I treat is opened for So when I have a wife 10 leverage, it means that for 10% margin, which is basically you know, 1/10 times 100 is 10% so people have leverage because see if it increase if the currency pair increased by 5%. No, if I just treat it without any leverage with $100 I would earn $5 have increased by 5% right on $5. But if I ever wanted to attend the riches as if I invested $1000.5 percent of 1000 would be $50 so I would have earned or lost, I'll have under $50 if it increased by 5%. So basically, leverage and margin, actually quite powerful tools increases your the amount, the possible amount you can earn as well as possible amount you can lose. So when you choose your leverage levels, you have to be really careful and shoes that, based on the amount of risk you want to take 4. Trading Instruments: Forex: I'll come to the next lesson on treating instruments focusing on forex. So far, it's as soon as foreign exchange and its markets open for 24 hours from Monday to Friday. Although we and the fact that you're open for 24 hours, it's a result. Off the house opening and closing times of the different financial hops across the world nicely overlap, which allows it to be open 24 hours a day. And the forex market is so extremely liquid due to the high volume of treats, um, then try the world. So generally in this market, this because usually provide for leverage for up to one, is to 50. Although I don't recommend using such high leverage and is because no currency passage, we have small daily fluctuations. Brokers also usually charge zero commission and the just on money. True, the spread by increasing the spread slightly, the major currency pass in the forex market will be this fooling for oh currency piss and how the value of the currency pairs go up, go down. Um, it depends on how d different Kansi's appreciate or depreciate. So, for example, for Euro USD see on the Euro increase us in strength on appreciates in value while the USD depreciates, then the EUR USD currency pair were increased greatly. Okay, so that's how he fights market books. Oh, now on go to mix that sent to find out more about stocks and eight years. 5. Trading Instruments: Stocks and ETFs: Hi, everyone. Welcome to the next lesson where we'll be covering stocks and gifts. So when we talk about the stock market that talking about him buying and selling off shares . So when you buy all when you buy an owner share, you are basically a shareholder meeting that your own pack off the company and usually has a member public. You are only able to access, um, the shares off public companies, which I listed on stock exchanges. So how do private companies become public companies? And first, please, So private companies usually fall for an initial public offering? Or in AIP, you Atto, a stock exchange? Such a scene, New York starting to see New York Stock Exchange, N Y S E. And if the I P O filing is successful, they didn't become a public company. We needed that Shares are now, um treatable in the stock exchange and members of public and buy and sell it there and since morning shares is sort of like owning when you own shares your own powerful company. The company usually gives out a dividends to its shareholders, either quarterly or annually, and the amount of dividends given to you or money given to you is proportionate to the amount of shares that you hold in the company. So a lot starting strangers around the world include the NYC New York Stock Exchange and NASDAQ in the US The London Stock Exchange in the U. K. He took your stock exchange in Hong Kong exchanging Asia. So I've covered stocks. Now I'll move on to eat. Yes, So IT years are exchange traded funds and also similarly traded on stock exchanges. Um, a week. Think off it yet. Is that yes, our basket off different assets. Oh, and an example off FEMA CTS will be the SPDR Dow Jones Industrial average and the SPDR S and P 500. It? Yes. So people really buy into it? Yes, because they know the one. The volatility off a single company. See if a by the chefs safe All your and high portfolio is just a shares off a single company and say one day it crashes. You lose a huge amount of money, but it s a much more stable given that their value is determined by the communicative by the waiter venues off the underlying assets. So for s and P 500 for example, the S and P five years value is determined by share price values off the off 500 different companies and businesses in the U. S. And eyes generally seen as, you know, an indicator off the general market performance in the U. S. So that's why people buying gifts. So I hope this, uh, this lesson has helped you get a better understanding off stocks and yes, soon it takes lesson. 6. Reading Candlestick Charts: everyone. Welcome to the lesson on reading Candlestick charts off trading one on one. So there are a number of shots when treating. But most common one used by traders would be endorsed. It chocks. So are particularly have to be them. So definitely green Green box will mean that the price increased from the opening two Opposing treat more right bars mean that has decreased. There are also black and white candlestick cots. In that case, the white white bus will mean increase any black bar You mean please. So this section over here is called the by the body of the bar. So the for a green Kano state, the opening three opening tree would be at the bottom of the bath and it wasn't true over the top. And the converse is true for a red candlestick, the ninth at the top and bottom of the body I call weeks. Or should I do shadows? And he represents the highest and the loss? Um, price values off overtreatment within within that particular point in time. So it is important to note, though, that, um for Candlestick chart, they are different time frames you can use based on your training strategy. So they are, You know, one minute charts two minute charts on one hour charts, forward shots and even D charts. And so one. So actually, besides, actually from the candlesticks, you can actually tell a market sentiment towards it the next day. So yeah, some examples or bullish candles in order off the most bullish to release a bullish. And there's actually a name, uh, for it. So this the moral bouzou hope I pronounce it correctly. This mystery candlestick without a shadow, um, indicates a very bullish sentiment, given at the bias, actually controlling the entire trade windy, anti playoff time. Uh, says Daniel Shadows, similarly, bar without any shadows is bearish, and it is a very, very strong, bearish sentiment and their names for different times off bodies. You go down like him a spinning top, inverted hammer and so on. No stand up, various spinning top Emma. So I like to move out of duty candles so you can. Those are candles where the opening and closing are extremely close, which ago no, causing it to seem like almost a line is like a spinning top, but even one stream, so this would be called Would you stop and, uh, worry for longer shadow will be call on legal duty. The one way for ah, high up a shadow without any wash I do will be caught. Lowitt will be called Greystone do he? And one of the no a week with our high week will be called a truck and fly do G. Do you? Can those really represent and suggest indecision within the market? Um, where there's a soffit castle and tug of war between the bias and sellers throughout the period off the candlestick and the ultimately ends at a similar level. So it's just indigestion in the market and a possible trend reversal. I hope this gives you a good overview off candles, sick charts, and I see you in the next lesson. 7. Trading Strategies: everyone. Welcome to the trading strategies. Lesson off. Trading 11 Before I begin this lesson I like to share. A few white trading strategies are important, you know, in the wall around the water is a huge amount off video investors. Individuals, I asked. You make money by treating other stocks. All forex have a huge percentage of them actually lose money from treating rather than making money. It is because they treat using the emotion a hearing, rumors from their friends or making wild and random predictions. This really are leads on the possibility off them losing huge sums of money. Ah, affecting the financial health. So trading strategy is what really differentiates a gambler from the trader. A trader of a trading strategy will be able to apply it without emotion consistently over time, and it will ensure and veteran strategy is good. You will allow him or her to be able to make consistent profits in long term. Over is large number of trees. This does not mean that he makes money on every tree, but you definitely make a net profit. Well, what time consistently. Okay, so there are two main methods for, um for a net for analyzing funding for any lea for analysis and analysis and follow mental illnesses. So for any car analysis, the trader will not open external environment. He would disregard any form news. Um, and we just look at it, trust itself to decide whether to buy or sell stock for Saudi Prince. You pay so your first look at the main things chapters and technical indicators. So did you see home and chop better? Many times of trash presidents distract within is called double bottom. You can see it's a first bottom in a second bottom introduced this line and after included a seven president was it then Trash world And if we know can put me, um, a long position as he based on his trumpet and he will know that you re bound, uh, an increase in prices up your time, so chapter don't out. But does that commonly appear and cannot see charts and traders often use them to decide on whether you should buy yourself Now moving on. What? I'm going to get us here. You see a chart off for euro USD. Um, and as you can see how they are, you can truce a different time, frames 20 shots and usually knows if you have so can draw lines and things I did to help you. I didn't fire trap mittens, and short visually. Oh, now focus on indicators. Here you see the allocution on both in to keep us that you can use for trading strategy. And, um, I'll just show you a few common ones here He saw the M E c d. The moving average conversion divergence is that needed? Could I thought it helps you spot training vessels. Um, when you see that the nine blue and honest line crosses, they will usually be a reversal in trend. You see crosses here, then start to decrease and the blue lines now under the only sign and if they cross this year again, uh, include this more shopping off time also see again and decrease us. Starting so far, not a common indicator. Honored to share is the our site on a relative strength index. When it goes above this 70% mark shown by this nine, it's just that the stock body currency pays being overbought, and we expect spice to decrease so example this year that's over but he also expected to decrease. So we sell it and it's going to see it follows. And he stopped the currency pair price decreased. Meanwhile, if it hits the coast Bologna Tuckey percentage point mark Um, you see, that's over salt, and we believe that increase truly, Allah finicky eaters use um, and I'll cover them in more detail in our future costs. I'm gonna develop on treating strategies. Do you? For now, let's continue on to a fundamental analysis. So fundamental analysis. When you look at the news, you don't get a bar chart suggest you do look at about us about you. Many look at the the things like the catch 48 months in company months and balance sheets off the company you are intending to invest in look and industry the market. Share the company that competent competitors and whether you see the industry as expecting whether expected industry to have growth any company to have growth of the time. Ah, one example off type off fundamental analysis and the list will be a value investor where he identify stocks with high intrinsic value and by the morphine was very invested will be a Warren Buffett. Where's me? Quite some who? Some of money by value, investing in in so called cheap stock, whose price is Carney prize it values as Lord and intrinsic value and tastic expected to increase over time before it's we don't look at the cash flow. Statements are income treatments reveal. Look at things like interest rates, unemployment data and GDP growth. So, um, show. Here are a few so off statistics you can look at to you see how effects on the car affects the currency. Usually the governments would release them periodically over a year, and you can use and economic Collender to help you keep track of it. He now factors to consider in choosing a treating strategy. First, you need to know what time frame like choosing to treat. Are they treating is when you want Oh, you open and close to treat within a single de caen. Treating is when you are doing over a few days, you have to treat open for over a few days or a week and for a long time treating usually want to call it for months or years. I want maybe even a few decades, so the time frame off. Often treating wouldn't really influence the type off analysis you use. Generally, technical analysis is more suitable for a short time treating, um, but can also be used for medium term training. A fundamental analysis, meanwhile, is really meant for more a long time. Treating especially value investing is a very long term strategy. You also depends on your style, but they want to be an active for passive investor. Do you want to spend a some kind of half time looking at the markets or you want to be a passive meaning that you put, uh, you make me treat and it has to leave it for a long period of time? So it also depends on the capital available. If you have a huge amount off capital, no stocks could be will be good for you if you're very, very little capito C. Maybe only $500. I believe for XP quit It is because off the the way. But we're just shot you for you services, for for actually really just doing tracked by convention. The only church by spreads and man ups actually really scalable, Um, based on the amount you invest while I'm usually if there's a commission, there's usually a minimal flattery for processing fee, and this will not be preferable to you if you have a rest form of capital. So I hope that you get got a good idea off the basics of treating strategies and, um, see you later. 8. Recap & Class Project: hi. Everyone are now going to do a brief recap and explaining past project. So this is off cost structure. If any doubts or you want to refine being do we watched the lessons. Otherwise, you can write your questions in a discussion and let other felons let us experience you before out before and off this course I like to make a show disclaimer. Finishing this cause does not mean that you are ready to treat yet. Um, because he just although it gives you a good understanding off what shooting is about and what treating is like, You have not yet developed a good train strategy and you have not tested it are using a virtual trading account. And only after you do that can you start treating. So that's why I'm starting development cost to focus on trading strategies to help you, um, you know, necessary knowledge toe begin treating. So now for a passport. Yet I'll address that you have two possible Kasprowicz can do. First, you can either Macheda fully your desire, starting capital. I'm your style. What do you want to be active for passive treater? What instrumental wanting to invest in it. You give it have stopped. Is it for X? A combination of them. What percentage will be the combination be like? And what in the department that you want to choose? Whether is fundamental, Nice is that important? This is and why and I think can do, which would be beneficial to our entire any community is to whether it is to introduce a new track pattern or you're going to cater or factor to go into the fundamental on that says to the class. And so you just introduced what? The name off the trap internally Technical indicator defector and explain how it can be used in a trading strategy. In simple comes this whole, uh, and hope to see you again in our future courses.