MODULE 1 – Trading Principals

Your journey will start with “Trading Principles.” Trading and investing are two distinct terms. In the beginning, it is essential to get all our students on the same page, learning the same key terminology, which will improve professional communication on our social trading platform. Our community members use the same terms in the same context. This allows effective communication and avoids confusion along the way.

Lesson 1: Trading 101

In this lesson, we will provide an in-depth introduction to the world of stocks trading. You will learn what stocks trading is all about, why someone chooses to trade stocks, and whom you are competing with. On top, we will guide you through a simple stocks case study and show you what happens when you trade stocks.

Furthermore, we equip you with a lexicon of market terminology specific to the stock market. You will learn the basic concepts, and we will explain the terms you need to understand before introducing meaningful analysis. We also include sample exercises to help you practice your skills.

Lesson 2: Trading Terminology

In this lesson, you will gain knowledge about the elements of a trade set up. Following a simple pre-planned approach will help you spot low risk, high reward, and high probability trading opportunities, place predefined Entry-, Target- and Stop-Loss orders, and let it play out. We call this approach: “set-and-forget” and get a life!

Once you are confident enough and have adapted to the “set-and-forget” approach by applying the laws of Supply and Demand, emotions and stress will be reduced, and trading will become part of the normal life. Ultimately this trading style helps you to master life outside of trading.

On top, you will learn the different types of positions in the stock market: Long and short. We introduce you to the most important Key Performance Indicator of any trading and investing strategy: Risk-to-Reward.

Lesson 3: Flow of Trading

In this lesson, you will study the flow of money. You will gain knowledge about the context of how money flows, in other words, who are the market participants, what kind of financial products exist as well as the different types of order status. This lesson is designed to prepare your background knowledge before we begin charting. Therefore, you will understand what happens behind the scene and how charts are created.

Lesson 4: Charts 101

The relationship between Supply and Demand defines the direction of the price. If Demand exceeds Supply, the price goes up. If Supply exceeds Demand, the price goes down. In this lesson, you will gain an in-depth understanding of charts. What they represent and more importantly how we interpret them using Supply and Demand.

It is also time to introduce how we use different time frames for different income goals whether you are looking for short-term or long-term investments. At our academy, we call this daily income, weekly income, and monthly income.