Introduction to the Financial Markets

6 Lessons
6 Hours

About this video series

Welcome to the Trading 101 Forex Trading Video Tutorial Series!

Trading 101’s Forex Trading Video Tutorial Series provides traders of all levels of experience with an arsenal of knowledge, explaining in-depth aspects of trading, and trading strategies. It is our mission to educate all our users and prepare them for the exciting world of trading.

Trading is about putting your money to work in order to achieve your personal goals. Unlike what many people think, successful traders don't rely on good luck and chance. Before they trade, they plan, research, and understand their investments and how it fits with their financial goals. If you're planning to trade, being well-prepared will improve your chances of success. In these video guides, we aim to teach you how to make educated decisions on what and when to trade because we know that “You have to learn before you can earn”.

Most successful traders agree that profitable trading or investing requires: (1) a method, (2) money management, (3) psychology.

A method is working system that gives you entry and exit signals. Money management is about controlling your exposure and psychology involves the proper mental approach.

Method

A method is what you will use to make decisions about entering or exiting the market (i.e. when to buy and when to sell). It can be technical analysis, where you use the price of the asset to determine its direction. It can be fundamental analysis, where you analyze how good an asset is and compare it with other assets. It can be market rumors or reports or trading signal. Or it could just be your gut feeling (e.g. “I have a feeling the Euro will go up today so I will buy”).

Money Management

The elements of money management are: (1) a specific amount of money to be used in each trade, (2) a stop loss order placed for each trade, and (3) a specific amount of money to risk in each trade.

Psychology

Trading psychology and the correct mental approach are key components of successful trading. Trader psychology is the control of the trader’s fear and greed. In general, it’s the discipline to follow your method and stick to your money management rules. Without discipline, all the best laid plans can quickly become meaningless. It all starts with the human mind.

Trading 101’s video guides were designed to teach everything you need to trade successfully from A to Z. Guides 1 and 2 give participants the necessary background on what trading is, the financial markets, and their characteristics. Guides 3 and 4 focus on the two major methods for forecasting the financial markets – fundamental and technical analysis. Guide 5 teaches everything one needs to know about money management – controlling your risk and exposure. Guide 6 focuses on trader psychology – how to achieve the discipline to follow your method and stick to your money management.

In the next video, we will begin our journey with an introduction to financial markets. Thank you for watching!