Detailed_Trading_Curriculum Flashcards
(29 cards)
What are financial markets?
Systems that facilitate the buying and selling of financial assets.
Financial markets can include stocks, bonds, currencies, and derivatives.
What is the difference between capital markets and money markets?
Capital markets deal with long-term investments, while money markets focus on short-term borrowing and lending.
Capital markets typically involve stocks and bonds, whereas money markets involve treasury bills and commercial paper.
What is the difference between OTC and exchange-traded markets?
OTC markets are decentralized and involve trading directly between parties, while exchange-traded markets are centralized and regulated.
Examples of exchange-traded markets include stock exchanges like the NYSE.
What structures are involved in stock, crypto, and forex markets?
Order books, centralized exchanges (CEX), decentralized exchanges (DEX), and forex interbank structures.
Understanding these structures is crucial for navigating different market types.
What are the main types of orders in trading?
Market, limit, stop, and stop-limit orders.
Each order type serves different trading strategies and market conditions.
What does execution flow refer to in trading?
The process by which orders are filled in the market.
Execution flow can be affected by market liquidity and order types.
What is slippage in trading?
The difference between the expected price of a trade and the actual price at which it is executed.
Slippage often occurs in volatile markets.
What are the main trading sessions in the forex market?
New York, London, and Tokyo sessions.
Each session has unique characteristics and trading volumes.
How is market volatility measured?
Using statistical methods such as standard deviation or through specific indicators like the VIX.
Volatility affects trading strategies and risk management.
What is liquidity in the context of financial markets?
The ease with which an asset can be bought or sold without causing a significant impact on its price.
High liquidity usually results in tighter spreads and less price manipulation.
What are candlestick charts used for?
To visualize price movements over time and identify market trends.
Candlestick anatomy includes the open, close, high, and low prices.
What types of charts are commonly used in trading?
Line charts, bar charts, and Heikin-Ashi charts.
Each chart type provides different insights and visualizations of price data.
What defines a trend in trading?
A general direction in which the market or asset price is moving.
Trends can be upward, downward, or sideways.
What are support and resistance levels?
Price levels where the market tends to reverse direction.
Support is a price level where buying interest is strong, while resistance is where selling interest is strong.
What are high-probability chart patterns?
Patterns that indicate potential future price movements with a higher likelihood of success.
Examples include flags, wedges, and head & shoulders.
What is the role of volume in trading?
To measure the number of shares or contracts traded in a given period, indicating market strength.
Volume analysis can confirm trends and price movements.
What does multi-timeframe analysis involve?
Analyzing price movements across different timeframes to identify trends and alignments.
This technique helps traders make more informed decisions.
What are key economic indicators?
GDP, CPI, NFP, and interest rates.
These indicators provide insights into the economic health and can influence market movements.
What is sentiment analysis in trading?
Monitoring news flows and social media to gauge market sentiment.
Tools include economic calendars and sentiment analysis platforms.
What is the importance of earnings reports in trading?
They provide insights into a company’s financial performance and can impact stock prices.
Traders often look for guidance and forecasts in these reports.
What are intermarket correlations?
The relationships between different asset classes, such as stocks, bonds, gold, and crypto.
Understanding these correlations can aid in diversification and risk management.
What are common techniques for scalping and day trading?
Breakout scalps, VWAP fades, and range scalps.
These strategies focus on taking advantage of short-term price movements.
What is swing trading?
A trading strategy that aims to capture price movements over a few days to weeks.
Swing traders often look for pullbacks and market corrections.
What are crypto-specific patterns?
Patterns unique to cryptocurrency markets, such as alt season and Bitcoin dominance.
These patterns can indicate market trends and investor behavior.
