OrbitMax
Silver
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You’re here to learn about investing great. “Note this isn’t financial advice take everything with a grain of salt”
SESSIONS
Alright let’s bring the first thing you need to know is where are you situated around the globe and what do you want to trade. Ex: if you in North America you would trade New York stock exchange (NYSE) if your in London you would trade London session and if your in Asia you would trade Asia session. Now there are many other micro sessions but theses are the main 3.
WHAT TO TRADE
In the stock market there are many assets you can trade. Ex: Stocks, futures, bonds, forex, etc. To identify what you want to trade determine your trading style. Do you want to long term investments? If so stocks and bonds may be the way to go. If you want to trade quite frequently with often manually placing the trades on a chart futures and forex are the way to go. Stocks and bondes are less volatile (more safe) and are often used for long term investments while futures and forex are more volatile with often practices like day trading being involved.
HOW TO TRADE
Now that you have a general sense of different types of markets how do you trade? Well for stocks and bonds you would want to use a broker like Wealthsimple if your Canadian and would like to trade Canadian stocks (note” this is only a good broker for trading Canadian stocks the U.S conversion is quite expensive and not good) If your Canadian or American Questrade is a good broker for Canadians that want to also trade American markets while Vanguard is a good broker for Americans that want to trade American stocks. (NOTE YOU MUST BE 18+ TO TRADE IF NOT IL SHOW YOU A WAY TO TRADE UNDER 18.) For trading futures and forex you’ll need two things Trading View and a broker. Now for futures trading there are many brokers to choose from but I use Tradovate and it’s very good so that’s what I recommend. Again you need to be 18+ to open an account however, I started trading at 15 and so can you. All you have to do is open an account under your parents name.
Okay let’s get into the actual trading part and basic understanding of how the stock market works.
CANDLESTICKS
This is what we call a chart. On this chart we have candlesticks these candle sticks shows how price is moving in real time and is what allows traders to predict to where the market is gonna go. Without them trading would be straight gambling. Think of candles as a sneak peak or a clip of a movie. It gives spoilers on where market is moving.
HOW TO READ CANDLESTICKS
Green candles show buying movement and red candles show selling movement. Now we as traders don’t want to use these colors when we trade. Il get to that later on but for now these colors makes it easier to understand.
As seen in the diagram, the bottom of the green candle is the opening price. This is where the buying momentum starts in the candle. Now for the red candle this is the exact opposite because the top of the candle is where price opens and the bottom is where is closes. Now the long sticks you may see on the candles is what we call “wicks” this is essentially where price was at one point but there wasn’t enough buying/selling pressure to close the candle. And lastly the big middle portion of the candle is the body. This is where most of the price moves. Now there are different types of candles and I could try to explain but it would take too long so Il make another post.
Alr now we are gonna learn about basic principles of the stock market.
LIQUIDITY
Before technology took over the world and Wall Street if you wanted to invest say Microsoft in 1980 you would have to call up a broker say “hello I would like to buy one share of Microsoft” and the broker would say okay. And this broker would have to go find someone to sell their share to you. Think of it as an exchange, you can buy something without someone selling it to you. It’s the same principle today except now it’s all digitalized and much quicker. Now as you know little traders like us don’t control the market, we just don’t have enough capital however, someone does. BANKS and hedge funds trade with trillions of dollars per day and is why we are at their mercy. However, there is one secret power we have that these banks need and that’s liquidity. As mentioned previously if you want to buy something you have to have a seller. This is the same thing for these banks, in order to the market to move in their favor they need us to fulfill these orders. And we can use this to spot areas of liquidity and use this to our advantage.
HOW TO SPOT LIQUIDLY
Liquidy is the most impotent concept to understand when it comes to trading. Essentially liquidy is located at lows and highs from previous resistance. This is where price has bounced back form the past and in result there are pending orders waiting to be filled. The beauty about liquidly is it doesn’t “expire” if price hasn’t returned to this area it’s still valid. That’s all it’s very simple. The diagram above shows a classic example of this. Notice how in this diagram the person isn’t using red and green candles. This is because of trading physiology. We as humans automatically associated red with “bad” and green with “good “ that’s why when trading it’s essential to use neutral colors like black and gray (that’s what I use)
Alr this is the basics if you want me to make another thread going more in depth with different concepts just lmk.
SESSIONS
Alright let’s bring the first thing you need to know is where are you situated around the globe and what do you want to trade. Ex: if you in North America you would trade New York stock exchange (NYSE) if your in London you would trade London session and if your in Asia you would trade Asia session. Now there are many other micro sessions but theses are the main 3.
WHAT TO TRADE
In the stock market there are many assets you can trade. Ex: Stocks, futures, bonds, forex, etc. To identify what you want to trade determine your trading style. Do you want to long term investments? If so stocks and bonds may be the way to go. If you want to trade quite frequently with often manually placing the trades on a chart futures and forex are the way to go. Stocks and bondes are less volatile (more safe) and are often used for long term investments while futures and forex are more volatile with often practices like day trading being involved.
HOW TO TRADE
Now that you have a general sense of different types of markets how do you trade? Well for stocks and bonds you would want to use a broker like Wealthsimple if your Canadian and would like to trade Canadian stocks (note” this is only a good broker for trading Canadian stocks the U.S conversion is quite expensive and not good) If your Canadian or American Questrade is a good broker for Canadians that want to also trade American markets while Vanguard is a good broker for Americans that want to trade American stocks. (NOTE YOU MUST BE 18+ TO TRADE IF NOT IL SHOW YOU A WAY TO TRADE UNDER 18.) For trading futures and forex you’ll need two things Trading View and a broker. Now for futures trading there are many brokers to choose from but I use Tradovate and it’s very good so that’s what I recommend. Again you need to be 18+ to open an account however, I started trading at 15 and so can you. All you have to do is open an account under your parents name.
Okay let’s get into the actual trading part and basic understanding of how the stock market works.
CANDLESTICKS
This is what we call a chart. On this chart we have candlesticks these candle sticks shows how price is moving in real time and is what allows traders to predict to where the market is gonna go. Without them trading would be straight gambling. Think of candles as a sneak peak or a clip of a movie. It gives spoilers on where market is moving.
HOW TO READ CANDLESTICKS
Green candles show buying movement and red candles show selling movement. Now we as traders don’t want to use these colors when we trade. Il get to that later on but for now these colors makes it easier to understand.
As seen in the diagram, the bottom of the green candle is the opening price. This is where the buying momentum starts in the candle. Now for the red candle this is the exact opposite because the top of the candle is where price opens and the bottom is where is closes. Now the long sticks you may see on the candles is what we call “wicks” this is essentially where price was at one point but there wasn’t enough buying/selling pressure to close the candle. And lastly the big middle portion of the candle is the body. This is where most of the price moves. Now there are different types of candles and I could try to explain but it would take too long so Il make another post.
Alr now we are gonna learn about basic principles of the stock market.
LIQUIDITY
Before technology took over the world and Wall Street if you wanted to invest say Microsoft in 1980 you would have to call up a broker say “hello I would like to buy one share of Microsoft” and the broker would say okay. And this broker would have to go find someone to sell their share to you. Think of it as an exchange, you can buy something without someone selling it to you. It’s the same principle today except now it’s all digitalized and much quicker. Now as you know little traders like us don’t control the market, we just don’t have enough capital however, someone does. BANKS and hedge funds trade with trillions of dollars per day and is why we are at their mercy. However, there is one secret power we have that these banks need and that’s liquidity. As mentioned previously if you want to buy something you have to have a seller. This is the same thing for these banks, in order to the market to move in their favor they need us to fulfill these orders. And we can use this to spot areas of liquidity and use this to our advantage.
HOW TO SPOT LIQUIDLY
Liquidy is the most impotent concept to understand when it comes to trading. Essentially liquidy is located at lows and highs from previous resistance. This is where price has bounced back form the past and in result there are pending orders waiting to be filled. The beauty about liquidly is it doesn’t “expire” if price hasn’t returned to this area it’s still valid. That’s all it’s very simple. The diagram above shows a classic example of this. Notice how in this diagram the person isn’t using red and green candles. This is because of trading physiology. We as humans automatically associated red with “bad” and green with “good “ that’s why when trading it’s essential to use neutral colors like black and gray (that’s what I use)
Alr this is the basics if you want me to make another thread going more in depth with different concepts just lmk.
