Scribd
Upload
82 views2 pages

Beginner Trading Notes

The document is a beginner's guide to trading, explaining the basics of buying and selling assets for profit. It covers various trading types, common indicators, basic trading terms, and the use of candlestick charts to visualize price movements. The goal of trading is to buy low and sell high, with strategies varying from quick scalping to long-term position trading.

Uploaded by

keskurangagao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd
82 views2 pages

Beginner Trading Notes

The document is a beginner's guide to trading, explaining the basics of buying and selling assets for profit. It covers various trading types, common indicators, basic trading terms, and the use of candlestick charts to visualize price movements. The goal of trading is to buy low and sell high, with strategies varying from quick scalping to long-term position trading.

Uploaded by

keskurangagao
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as PDF, TXT or read online on Scribd

Beginner's Guide to Trading

1. What is Trading?

Trading means buying and selling assets like stocks, crypto, or forex to make profit from price changes. For

example: Buy Bitcoin at $30,000 and sell it later at $35,000 to make a profit of $5,000.

Goal of trading:

- Buy Low, Sell High

- Or Sell High, Buy Low (Shorting)

2. Types of Trading

- Scalping: Very quick trades (minutes). Small but frequent profits.

- Day Trading: Open and close trades within the same day.

- Swing Trading: Hold trades for days or weeks.

- Position Trading: Hold trades for months, like investing but more active.

3. Common Trading Indicators

- Moving Average (MA): Shows the average price over time to spot trends.

- RSI (Relative Strength Index): Measures if an asset is overbought (above 70) or oversold (below 30).

- MACD: Shows when a trend is changing.

- Volume: Measures how many people are trading (high volume = strong movement).

- Bollinger Bands: Shows if price is too high or low.

- Support & Resistance: Support = price floor; Resistance = price ceiling.

4. Basic Trading Terms

- Bullish: Price expected to go UP.

- Bearish: Price expected to go DOWN.

- Entry Point: When you start your trade.

- Exit Point: When you close your trade.

- Stop Loss: Auto-sell to limit your loss.

- Take Profit: Auto-sell to secure your profit.

- Leverage: Borrowing money to trade bigger (but risky).


Beginner's Guide to Trading

5. Candle Chart Explanation

Candlestick charts show price movement:

- Green candle: Price went UP during that time.

- Red candle: Price went DOWN.

Each candle shows 4 things:

- Open price

- Close price

- Highest price

- Lowest price

Tip: Long wicks show strong rejection. Small body = low movement.

You might also like