Introduction To Learn Trading

As a indices introduction this learn tutorial and this learn website in general is designed in an easy and well organized learn trading format to facilitate and make it easy for beginner traders and those who want learn trading to do so in a manner that will make it easy for them to understand the stock concepts explained and develop their own strategies that are effective when it come to trading the stock trading market.

This learn tutorial will try to cover an introduction to the stock trading market and stock traders can read through this learn tutorial course to get a basic idea of how to go about trading the stock trading market. Traders can also navigate to the learn tutorials section to get a list of the learn tutorials that are covered on this learn web site.

The following information shows the various lessons that are covered on this learn web site on the learning section.

Introduction to Trading

These learn topics covers introduction to stock market by covering a definition of the stock trading market basics that traders need to know before starting out in stock indices trading.

In this learn topic the a trader will the learn the basic terms used in the stock trading market, indices terms such as charts, price quotes, lots, indices pips, indices spreads, indices margin, indices long position, indices short position, platforms & charts.

Trading Strategies

In traders must develop a trade strategy to trade with. A trading strategy is a method or a stock system that has written rules set out that the trader will use when trading the stock trading market. The rules will specify when a indices trader will open a trade transaction, when a trader will close a trade and how much profit a stock index trader wants to make from each trade and at what point they will close their trade if the trade transaction moves in opposite direction.

Traders can find a list of the popular strategies on strategies section of this learning website.

Technical Analysis

These learn stock trading analysis topics explain to traders the various indices methods used to analyze stock market move using indicators and stock technical analysis studies.

For example some of the popular stock trading analysis studies in indices trading are:

Support and Resistance Levels - Technical Analysis

Some traders also refer to these support & resistance areas as support and resistance lines. The stock concepts of support and resistance levels refers to stock trading price zones where it is difficult for the stock trading price break through and move beyond these stock trading price regions.

At these levels traders are likely to perceive the stock trading price of the instrument as being cheap or as being expensive.

Support Area

Support level prevents the stock trading price of an asset from getting pushed down-wards. Support levels are hence considered as the floor because these stock trading price levels prevent the stock trading market from moving stock prices downwards past a certain point.

Resistance Level

Resistance level prevents the stock trading price of an asset from getting pushed upwards. Resistance zones are hence considered as the ceiling because these stock trading price levels prevent the stock trading market from moving stock prices upwards.

Trend-Lines - Technical Analysis

Trend Lines are used to determine the over-all direction of the market.

Sometimes support and resistances on the stock trading price chart are formed diagonally in a similar way like a staircase. This forms a trend, a trend is a sustained movement in one direction either upward or downward.

A trendline depicts these points of support & resistance for stock trading price.

Trendline is an aspect of stock technical analysis that uses line studies to try and predict where stock trading price will move next.

A trend line is a straight diagonal slanting line that connects two or more stock trading price points & then extends into the future to act as line of support or resistance.

Trend lines are based upon the idea that stock markets move in trends. Trend lines are used to show three things.

The general direction of stock price trading movement up or down.
The strength of the current stock trading price movement and
Where future support and resistance of the trading current stock price move are likely to be located.

If a trendline forms in a certain direction then stock trading price usually moves in that direction for a period of time until a time when the trend-line breaks-out.

Up-wards trendline - If stock trading price of a stock chart is moving up then a trend line is formed that's also heading up. This indices line is called an upward trend line.

Downwards trend line - If stock trading price of a stock chart is moving down then a line is formed that also moves down. This indices line is called a downward trend-line.

MAs Trading Indicator - Technical Analysis

MAs stock indicators are also used in indices trading to determine the general trend direction of market. MAs is a market trend following indicators that's used to explain the direction of the market.

Most common indices method of determine direction of the trend is by using two moving averages to form the moving average cross over trading method. The Moving Average cross-over stock system is discussed in our strategies section. The Moving Average cross-over stock system is made up of two moving averages one with a lower period and the other with a higher period, for example one might use the 5 period moving average MA and the 7 period MA moving average, when stock trading price is heading up the 2 MAs will also be moving up and when stock trading prices are heading down the two moving averages will also be moving down. Traders also can identify when a trend changes its direction because the two indices trading moving averages will cross over each other once there is a change in direction of the stock trading price movement. This trading cross-over signal is used by stock traders to determine when to open a new trade after the crossover stock signal has been generated and the two indices trading moving averages starts to move in the same direction. This crossover stock signal is also used to determine when to close a trade and take profit after there is a trading cross over signal in the opposite trend direction.

Selecting a Stock Broker

Traders will need to know how to choose a good stock trading broker. The first thing to look for is trading regulation; a stock indices trader should research and determine if a broker is regulated before deciding to open a trading account with the online broker.

Opening a Practice Account

Traders should open a stock trading practice account commonly known as a demo stock account and use this demo stock account to practice trading for a period of one or two months. Traders will use the demo account as they learn stock concepts & strategies. Traders can test their strategies on this practice account before deciding if the strategy they are using is profitable enough to trade with it on a real stock trading account.

Open a Live Trading Account

After traders have completed learning trading and have come up with a profitable strategy they should then open a live trading with their stock broker and begin investing and trading the stock trading market. To open a live account a trader will have to fill some paperwork after which they can then log in to their stock account & begin placing trades in the online stock market through their stock trading broker.

Indices Trading Tips

Come up with a written plan that will be a summary of all that you have learnt in stock indices trading and this plan will specify when you will open a trade, when you'll close a trade, the money management rules that you will use when opening stock trades and also it will set out a list of the indices goals that you want to accomplish when it comes to trading. A trader can get an example plan template from the learn lessons section of this website in the key concepts tutorials.

Learn money management rules is also another good tip -indices money management rules are also explained in the learn section of this learn website in the key concepts topics. Indices money management rules will help a trader to learn the best methods to follow when it comes to managing their account balance. For example a trader can learn that equity management specifies that a stock index trader should not risk more than 2% of their capital on any one single trade.

Learn More Lessons and Courses:

Trade Stock Indices