What is trading?
Buying and selling financial assets to profit from price changes.
What is a stock?
A unit of ownership in a company that may appreciate and pay dividends.
What does a broker do?
Provides a platform and access to markets for placing trades securely.
What is bid and ask?
Bid is the highest buy price; ask is the lowest sell price at a moment.
Market vs limit order?
Market executes now; limit waits for your chosen price.
What is a stop order?
An order that triggers when price crosses a specified level.
What is a candlestick?
Shows open, high, low, and close for a period.
What is a trend?
The dominant direction of price.
Support and resistance?
Support is a floor; resistance is a ceiling.
What is risk‑reward?
The ratio of potential gain to potential loss.
What is stop‑loss (SL)?
A predefined exit to cap losses.
What is take‑profit (TP)?
A predefined exit to lock gains.
Position sizing basics?
Risk a small fixed percent per trade.
What is leverage?
Borrowed exposure magnifying outcomes.
What is slippage?
Execution at a different price due to speed/liquidity.
What are sessions?
Asia/Europe/US hours with different volatility.
What is liquidity?
Ease of trading without large impact.
What is volatility?
Magnitude and speed of price moves.
Why keep a journal?
Record setups, emotions, outcomes.
Beginner mistakes?
Over‑sizing, moving stops, over‑trading.
Order flow basics?
Read bids/offers and prints to infer pressure.
Market microstructure?
Matching engines, liquidity, spreads.
VWAP & volume profile?
Anchor to volume; find value areas.
ATR sizing?
Scale size by volatility.
Kelly criterion caution?
Aggressive; use a fraction.
Compounding plan?
Scale risk with equity; cap in DD.
Walk‑forward analysis?
Optimize, then test next window.
Monte Carlo simulation?
Shuffle sequences to gauge variance.
Alpha decay?
Edges weaken; refresh logic.
Regime detection?
Trend/range/vol regimes route systems.
Volatility clustering?
High vol often follows high vol.
Options Greeks?
Delta, gamma, theta, vega risks.
Delta hedging?
Offset option delta via underlying.
IV vs HV?
Expected vs realized volatility.
Carry trade?
Harvest rate differentials in FX.
Macro indicators?
Rates, inflation, growth, sentiment.
Risk parity?
Equalize risk contributions.
Robustness checks?
Small parameter changes shouldn’t break it.
Drawdown management?
Predefine max DD; reduce risk; pause.