I discovered that a lot of people want to learn how to trade but when they try to source for materials to help them on the internet, they get frustrated because at the end of the day, they understand next to nothing.
Many are even trading but they don't understand the fundamentals of trading and that is why they fail woefully. Some that are even lucky to hit it big at a time cannot replicate the success.
I decided to publish a series where I will be teaching you all the fundamentals of trading. The teaching will not be limited to cryptocurrency, it can also be applied in FOREX trading and in other financial markets.
Everybody interested should follow me, both old and new traders will benefit a lot from this.
As I said earlier, the focus will be on Cryptocurrency trading but the principles can be apply to FOREX, stock and others.
Let's start by understanding what Financial Markets are:
Financial Markets (FM) are places in which people buy and sell financial securities.
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There are different types of Financial Markets which include
- Stock market
- Bond market
- Currency market also known as foreign exchange or FOREX
- Commodity market
- Cryptocurrency
- Futures market
- Derivatives market
- And so on
Of all the types of financial market, stock is the most popular, FOREX has the highest turnover and cryptocurrency is the newest.
Instruments in financial market are entities tradable in the market. For example Bitcoin is an instrument in crypto and EuroDollar is an instrument in FOREX.
Ticker is the abriviation of the instrument. For example BTC is the ticker for Bitcoin.
As a trader, before you can choose an instrument to invest in or to trade, there are some analysis that must be done. 3 analysis a trader can choose to work with to analyze any market to choose an instrument are:
- Technical Analysis
- Fundamental Analysis
- Sentimental Analysis
TO BE CONTINUED...