Trading Newbie Series

TheTrading Newbieseries will focus on the fundamentals of how trading works.

It is expected that you have already read and understand theStock Market101page from TD:Stock Market 101.

COVER:

• Charts and price movement are models of human behavior
• Humans are creatures of habit and prone to doing things in patterns/based on rules
• Analyzing charts is equivalent to analyzing human behavior
• Make sure everything we talk about with charts, price movement, volume, etc. is discussed in the context of…
  • technical analysis,
  • published peer-reviewed research,
  • algotrading,
  • wall street opinions/methodologies, etc.,
• Give a thorough treatment for everything important and relevant.
• For things that have low value, mention them, but do not waste time writing about worthless shit, like super niche and bro-sciencey technical analysis indicators

1 — Introduction to foundational concepts

1. **Definitions before moving forward:**What is a stock? What is stock trading?
2. **Accessing the Market:**How does a person even buy stocks?
3. **“Stocks” vs. “Equities”:**What are equities? Link out to definitions of non-stock equities for this page, keep it concise.
4. **Price Movement:**How does the price move for equities? Why? Familiar examples? (“The DOW is over $50,000”, NASDAQ index, GME, etc.)
5. **Charts:**Definitions, examples:
   1. Timeframes
   2. Conventional and familiar line graphs
   3. OHLC candlesticks and bars
   4. Volume
6. **Compound Interest:**Small wins and losses add up
7. **Scaling of losses vs gains:**Losses hurt more than our intuition tells us
8. **Emotional trading pt 1:**Fear and greed, anxiety and excitement
9. Assume that most trades will be losers: the dangers of optimism