Module five "Advanced Stocks Knowledge" will give you an edge when trading stocks. As a stock trader, you must understand the unique characteristics of this asset class. Therefore, you can use its advantages in your favor and try minimizing your risk by understanding and avoiding the asset's disadvantages.
You will learn about some of the external economic factors that have an impact on your trading routine — understanding how retail traders and institutions will look at specific external economic data and how you can protect yourself from not getting caught on the wrong side of the trade.
Lesson 1: Trading Hours
It is time to learn about the different Stocks trading sessions from opening rush to closing. In general, the present technology allows us to trade all over the world through a vast network of brokers. Nonetheless, the stock markets are not open 24 hours a day. Therefore, we cannot be active the entire day.
This lesson will break Stocks trading hours into five manageable trading sessions. We will take an in-depth look at each of the sessions, as well as those periods when the sessions overlap. You will be able to determine whether high or low volatility will work best with your trading style and in which of the sessions we find the most significant Supply and Demand imbalances for a low risk, high reward, and high probability trading opportunity.
Lesson 2: Gaps
While novice traders tend to think about how much money they can make, those with skills know it's much more important to focus on what they could potentially lose. There is a risk in every trade you take. If you can measure risk, you can manage it.
In this lesson, we will run through a step-by-step guide that you can follow to help you manage risk, position sizing and ultimately maintain your profitability.
Part of this lesson is to understand what a professional trader calls "Gap Risk." Learn the fundamental concepts and dimensions on how to mitigate the risk of gaps and how to take advantage of gaps using our Supply and Demand strategy.
Lesson 3: Trade Workspace
After this lesson, you will never miss out on trades again. We will show how to organize your watchlist for it to be easily accessible and straightforward to update. You will be able to effortlessly place and manage your stocks trades regardless of your whereabouts.
Moreover, it is imperative to trade instruments which suit your requirements and needs in the market. Therefore, we will also spend some time showing you how to create a watchlist of instruments which will suit your specific trading style: for daily-, weekly- and monthly income.
Lesson 4: Earnings Report
The term "earnings season" refers to the time when most quarterly earnings reports are released to the public. As professional stocks traders, we understand that the unpredictability of earnings reports brings unnecessary risk.
In this lesson, you will learn how to mitigate risk by incorporating our News Calendar into your daily trading routine. We will give you a set of rules that will guide you through the earnings season. Specific actions you should consider prior, during and after earnings reports with the goal to reduce your risk and increase your probability of success.
Lesson 5: Upgrades / Downgrades
Upgrades and downgrades of stocks are ratings (recommendations) by brokerage houses whether to buy, sell or hold certain stocks. This is typically based on fundamental analysis. In this lesson we will show you how to incorporate these external economic events into your daily trading routine, explaining to you how to mitigate your risk should this happen before placing a new position in the market.