Learning Stock Markets

1️⃣ – Candlestick patterns

Candlesticks are very important for understanding market behavior. A single wick quite often can tell you a story. Mastering different candlestick patterns, you will be impressed by how much data and information you may derive from analyzing them.

2️⃣ – Price action patterns
At first glance price chart is complete chaos.
The market looks irrational and it feels like there is no way to read it.
Price action patterns are the language of the market.
With them, the price fluctuations start to make sense.

3️⃣ – Support & resistance
All predictions and generally all trades & signals are always based on support & resistance levels.
These are the levels that make the market change its direction, they influence the market so much, therefore you should learn to identify them and constantly hold them on focus.

4️⃣ – Supply & demand zones
The only difference between support & resistance and supply & demand zones is the fact that the first ones are represented as levels while the second ones are represented as the zones.
The identification of these zones is very important for proper market analysis.

5️⃣ – Key levels
Key levels are the strongest supports and resistances.
Of course, spotting various supports and resistances on the chart, we can not say that they all are equal in their significance.
There is a strong (however subjective) hierarchy of them.
The most significant are called key levels and from them, the most significant moves are always expected.

6️⃣ – Trend analysis
To analyze the price chart, one should always start with a trend analysis topic.
Knowing where exactly the market is going, having specific and objective rules for trend identification are necessary for successful trading.

7️⃣ – Top-Down analysis
Combining the signals & observations from different time frames to make trading decision and predict future market moves are success mantra.
It has proved to be a very efficient method of trading various markets.

8️⃣ – Financial instruments
Though to many it may sound obvious, in practice I know that a lot of people are struggling with a simple question “What to trade?”.
You must learn to properly build your watchlist and you should have strong reasoning behind the selection of each unite that is inside.

9️⃣ – Trend following trading
As we know, the trend is our friend. And even though the phrase itself is very simple and straightforward, it takes so much effort and time to learn to follow the trend properly.

1️⃣0️⃣ – Counter trend trading
Occasionally the market reverses. Properly identifying early reversal signs and then catching a sharp counter-trend move, huge profits can be made.
Even though such a style of trading is considered to be extremely risky, being applied properly will generate a lot of cash.

1️⃣1️⃣ – Risk management
Losses are inevitable.
They are part of the game and we can do nothing about that.
The only thing that we can do, however, is to control the losses.
Calculating the risk for every single transaction is essential to avoid a margin call.

1️⃣2️⃣ – Leverage trading
Leverage selection, the margin is the things that are tightly connected with risk management topic. These are the terms that you must know how to operate with.

1️⃣3️⃣ – Trading psychology
Playing with real money, occasionally losing significant portions of your trading account can be a tough game.
It takes time to build a strong psyche to deal with the irrationality of the market.


All the above-mentioned topics are equally important so at the end of the day you need to cover them all in order to become successful.