K1
Introduction to financial trading
Trading is the buying and selling of financial instruments to profit from price movements. It is not investing. It is not gambling. It is a skill that requires education, discipline, and risk management.
- The major markets: stocks, forex, commodities, indices, bonds.
- How traders make money: capital appreciation, speculation, dividends, interest.
- Market participants: retail traders, institutions, market makers, central banks.
- Key terminology: bid/ask, spread, pip, lot, leverage, margin.
- Trading vs. gambling: the distinction that matters is risk management.
Template
Trading Terminology Cheat Sheet
Quick reference for the essential terms you will encounter.
K2
Understanding the markets
Each market behaves differently. Knowing when each is open, what drives prices, and who participates helps you choose where to focus.
- Stocks — Equity markets, major exchanges, blue chips vs. penny stocks.
- Forex — Currency pairs, 24/5 operation, what moves exchange rates.
- Commodities — Gold, oil, silver, agricultural drivers.
- Indices — S&P 500, FTSE 100, DAX 40 — trading broader market direction.
- Bonds — Government and corporate bonds, yield and price relationship.
K3
Trading platforms, brokers, and tools
Your broker is your gateway to the market. Choosing poorly means higher costs, worse execution, and counterparty risk.
- How to choose a broker: regulation, fees, spreads, platform access.
- MetaTrader 4/5 and TradingView: the industry standard explained.
- Demo accounts: why you should start here and how long to stay.
- Essential tools: economic calendar, position size calculator.
- Mobile vs. desktop trading: when each makes sense.
Tool
Position Size Calculator
Calculate how much to risk per trade based on your account and stop loss.