Trading College
Frequently Asked Questions
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From the highest to the lowest we use: Monthly, Weekly, Daily, 4hr, 1hr, 15min and 5min charts.
A timeframe is the time period as applied to an individual chart e.g. a 1hr Chart or a 5 minute Chart. A timeframe refers ot the amount of time a trend lasts for in a market, which can be identified and used by traders.
Indicators are technical analysis tools creating programming software with mathematical calculations.
Yes we do sometimes use Fibonacci to complement our core trading strategies, however it is not a requirement to understand Fibonacci to be a successful trader. Some would consider this to be a specialist area of technical analysis.
Fibonacci Retracements and Money Lines are Technical analysis tools. They are based on the key numbers identified by mathematician Leonardo Pisano in the 13th Century as important numbers in nature.
There are seven colours used for candles: light and dark green mean Long, light and dark red mean short, blue means a retracement in a short move, yellow means a retracement in a long move and white means price action is choppy.
Candlestick Charts refers to the style of financial chart we use to analyse market price movement. Alternatives would be line charts or bar charts.
ProRealTime is a charting software and trading platform comprising high quality charts and market data.
As students learn to trade they commonly practice in a demo account. This is not live and so does not use real money, therefore protecting the students capital. Once a student reaches the necessary skill level they may choose to upgrade their account to begin live trading with real money in live markets.
A type of trading account offered by brokers using virtual funds to trade rather than real money. This is a safe space for students to learn as they will make neither profits nor losses.
Different brokers have different minimum requirements. It is possible to start to learn to trade with an account size as small as £200, however an account of, say, £2,000 will give you better margin requirements. You may wish to consider starting with a smaller sum and funding your account once you have grown in confidence and skill. Of course this is a personal decision based upon your own financial circumstances.
You may wish to consult your own independent financial advisor for...
Many traders only risk 1% of their account size. It is important to remember that minimising your risk is key to protecting your capital.
Please refer to the money management section of your course where more detail is provided.
The ratio between how much a trade could potentially lose compared to how much it could win e.g. risking 1% of your total account value hoping to win 2% equivalent.
Commodities that trade in the primary economic sector rather than manufactured products. Examples include US Crude Oil and Arabica Coffee.
A share of ownership of a publicly traded company or corporation e.g. buying shares of Tesla.
A Stock Market Index is an index that measures the price performance of a portfolio of stocks and represents a section of the financial market e.g. the Dow Jones Industrial Average.
The Foreign Currency Exchange is a global marketplace where national currencies are traded against one another in pairs e.g. EUR/USD.
Order Trades can be placed when you cannot be at the screens to wait for the price to reach your entry level to enter the trade manually.
Orders can be placed through the broker - either directly on the charts, through the broker's website or the broker's app.
The Spread is the difference between the buy and the sell price of a market. This difference (in pips or points) is the broker's charge for executing the trade.