Brief summary of the First Lecture

1. Introduction of myself

At the age of 15, living in New York City, I embarked on a journey into the world of finance. It began with an educational course on stock market trading that my mother found in a local newspaper. After enrolling in the course, my mother and I have opened our first trading account with a capital of $5000 for trading within the NASDAQ and S&P500 markets. Despite initial losses, I didn’t let discouragement set in and chose to explore the FOREX market, with a focus on the EUR/USD market. I dedicated myself to studying technical analysis and understanding market fundamentals. This marked the beginning of a 20-year challenge, aiming not just for financial success but also to gain a comprehensive understanding of the mechanisms driving global financial markets.

2. Understanding the characteristics of a ‘Simple Trader‘ in the market

This discussion focuses on understanding the majority of traders in the Cryptocurrency and Forex markets, referred to as ‘Simple Traders’. This term encapsulates the characteristics, experience, knowledge, and behavior of a trader. A ‘Simple Trader’ is defined as a market trader who uses technical, fundamental, and intuitive analysis in their decision-making process, including opening, holding, and closing positions. It is estimated that ‘Simple Traders’ make up over 90% of all traders in the market.

3. Deep dive into how the majority of traders employ technical, economic and intuitive approaches in their decision-making processes.

I will impart my understanding of how day traders utilize technical, economic, and intuitive trading strategies. We will view video demonstrations of how the market exploits economic data to secure profits. We will comprehend why retrospective technical tools do not yield consistently profitable forecasts. Additionally, you will discover how intuition can work against you and benefit the market.

4. The categorization of ‘Simple Traders’ into separate groups and the rationale behind it

You will gain a comprehensive understanding of the role and strategies of a Simple Trader in the market. This includes learning the methodology of categorizing Simple Traders into groups, understanding their use of technical tools, and their reliance on economic indicators and news. You will also discover how they employ an intuitive trading approach. Furthermore, you’ll delve into the distinct strategies of short-term, medium-term, and long-term Simple Traders.

5. Practical assignments for Lecture #1

In a practical assignment you will need to utilize a demo trading account. Feel free to open or use an existing one and select a market you’re familiar. Preferably EUR/USD or Ethereum/USD for beginners. Analyze the market using a 15-minute chart and candlestick patterns, aiming to identify short-range trades within a single trading day using various tools and approaches. Mark the entry and stop loss points on the chart. Empathize with simple traders to understand market behavior and take notes during the trading day to gauge their market sentiment.