Beginner Trading Guide
Pay close attention to this guide.
If you’re an absolute beginner and know nothing about trading, don’t worry. Our sole intention is
to help you become a consistently profitable day trader.
——————————————————————————————————————————
Fundamental vs Technical Analysis
There are two different ways to analyze stocks and crypto. One focuses on the intrinsic value of
a company while the other focuses strictly on price action. Let's discuss both and what they
mean.
What is Fundamental Analysis?
Fundamental analysis is focused on determining the intrinsic value of a company. What does
intrinsic value mean? It means we’re going to be finding the TRUE value of the company based
on its financial statements (income statement, balance sheet, etc), the industry the company is
in, its intellectual property, the CEO, the economy, the patents it owns, etc. Fundamental
analysis only applies to longer term investments. You should NOT be using fundamental
analysis in day or swing trading. In fact, fundamental analysis is basically USELESS for trading.
For crypto, fundamental analysis will be based on the utility of the coin
What is Technical Analysis?
Technical analysis is focused on reading and analyzing price action. In other words, we are
concerned with how the price of a stock is moving. There are several components to analyzing
price action including reading candlesticks, reading moving averages, understanding volume,
and more. You will learn all these elements in the other channels of the discord. Technical
analysis is the only way to objectively analyze stocks in the short term. Technical analysis is the
ONLY thing you will focus on when trading.
What is Trading?
Trading is the frequent buying and selling of stocks, cryptos, currencies, commodities, etc. If you
guys don’t know what a stock is, it’s a small piece of a company. So when you buy stock of
Apple, you’re becoming a small equity owner of the entire company. The more shares you own,
the higher percentage of the company you own. If Apple performs well and the stock price
increases, your equity (the shares you own) also increase in value, making you money. The
same thing applies for crypto as well. For each crypto, there is a certain amount of coins in
circulation. The amount depends on the specific crypto. When you buy crypto and the price
increases, your coins increase in value, making you money.
, What is Day Trading?
Day trading is buying and selling stocks, crypto, and other securities that occur during the
trading day. That means you enter and exit the position before the day ends. You don’t leave
any position overnight. For example, the stock market is only open from 9:30am - 4pm Eastern
time. A day trade would entail buying a stock at any time during trading hours and exiting the
position before the market closes at 4pm. For day trading, you focus on specific time frames.
Refer to the trading time frame channel in the discord to find out which time frames you should
focus on for day trading.
What is Swing Trading?
Swing trading is buying and selling stocks, crypto, and other securities that you hold anywhere
between 2-14 days. For swing trading, you focus on higher time frames. Refer to the trading
time frame channel in the discord to find out which time frames you should focus on for swing
trading.
What is Core Trading?
Core trading is buying and selling stocks, crypto, and other securities that you hold for several
months to a year.
Going Long
When you hear somebody say, “I’m going long on this stock or crypto”, that means they’re
buying that stock or crypto. Going long = buying. You will hear traders say going long all the
time and all that means is that they’re buying that stock or crypto and trying to sell it at a higher
price. If a trader buys a stock or crypto and it decreases in value, the trader loses money.
Going Short
Besides going long on a stock and making money selling it at a higher price, you can also make
money if the stock/crypto drops in price. It’s called shorting. With shorting, you make money
when the stock/crypto decreases in price and you lose money when the stock/crypto increases
in price. If you’re confused, let me explain exactly how it works. First, I’m going to give you a
scenario. Let's say you own a watch that’s worth $100 and I borrow your watch from you. After I
borrow your watch, I sell it on the open watch market where someone pays me $100 for it. Two
days later, I go back and see that the watch I borrowed dropped in price to $50. I still need to
return the watch I borrowed from you so I will go and buy it on the open watch market for $50
and return your watch back to you. That $50 difference is my profit. In other words, I sold your
watch and bought it back a couple days later at a much cheaper price and kept the profits. You
end up with the same watch back while I make a quick $50. This is exactly what’s happening
when you short stocks/crypto. You borrow shares of stock from the bank/broker, sell it, and buy
it back later at a lower price. When you buy it back later, the shares you buy back are returned
to the broker/bank. If you’re still confused, go ahead and ask for more help in the discord.
Shorting can be confusing to understand at first, but it is an excellent way to make money in the
stock and crypto markets.
Pay close attention to this guide.
If you’re an absolute beginner and know nothing about trading, don’t worry. Our sole intention is
to help you become a consistently profitable day trader.
——————————————————————————————————————————
Fundamental vs Technical Analysis
There are two different ways to analyze stocks and crypto. One focuses on the intrinsic value of
a company while the other focuses strictly on price action. Let's discuss both and what they
mean.
What is Fundamental Analysis?
Fundamental analysis is focused on determining the intrinsic value of a company. What does
intrinsic value mean? It means we’re going to be finding the TRUE value of the company based
on its financial statements (income statement, balance sheet, etc), the industry the company is
in, its intellectual property, the CEO, the economy, the patents it owns, etc. Fundamental
analysis only applies to longer term investments. You should NOT be using fundamental
analysis in day or swing trading. In fact, fundamental analysis is basically USELESS for trading.
For crypto, fundamental analysis will be based on the utility of the coin
What is Technical Analysis?
Technical analysis is focused on reading and analyzing price action. In other words, we are
concerned with how the price of a stock is moving. There are several components to analyzing
price action including reading candlesticks, reading moving averages, understanding volume,
and more. You will learn all these elements in the other channels of the discord. Technical
analysis is the only way to objectively analyze stocks in the short term. Technical analysis is the
ONLY thing you will focus on when trading.
What is Trading?
Trading is the frequent buying and selling of stocks, cryptos, currencies, commodities, etc. If you
guys don’t know what a stock is, it’s a small piece of a company. So when you buy stock of
Apple, you’re becoming a small equity owner of the entire company. The more shares you own,
the higher percentage of the company you own. If Apple performs well and the stock price
increases, your equity (the shares you own) also increase in value, making you money. The
same thing applies for crypto as well. For each crypto, there is a certain amount of coins in
circulation. The amount depends on the specific crypto. When you buy crypto and the price
increases, your coins increase in value, making you money.
, What is Day Trading?
Day trading is buying and selling stocks, crypto, and other securities that occur during the
trading day. That means you enter and exit the position before the day ends. You don’t leave
any position overnight. For example, the stock market is only open from 9:30am - 4pm Eastern
time. A day trade would entail buying a stock at any time during trading hours and exiting the
position before the market closes at 4pm. For day trading, you focus on specific time frames.
Refer to the trading time frame channel in the discord to find out which time frames you should
focus on for day trading.
What is Swing Trading?
Swing trading is buying and selling stocks, crypto, and other securities that you hold anywhere
between 2-14 days. For swing trading, you focus on higher time frames. Refer to the trading
time frame channel in the discord to find out which time frames you should focus on for swing
trading.
What is Core Trading?
Core trading is buying and selling stocks, crypto, and other securities that you hold for several
months to a year.
Going Long
When you hear somebody say, “I’m going long on this stock or crypto”, that means they’re
buying that stock or crypto. Going long = buying. You will hear traders say going long all the
time and all that means is that they’re buying that stock or crypto and trying to sell it at a higher
price. If a trader buys a stock or crypto and it decreases in value, the trader loses money.
Going Short
Besides going long on a stock and making money selling it at a higher price, you can also make
money if the stock/crypto drops in price. It’s called shorting. With shorting, you make money
when the stock/crypto decreases in price and you lose money when the stock/crypto increases
in price. If you’re confused, let me explain exactly how it works. First, I’m going to give you a
scenario. Let's say you own a watch that’s worth $100 and I borrow your watch from you. After I
borrow your watch, I sell it on the open watch market where someone pays me $100 for it. Two
days later, I go back and see that the watch I borrowed dropped in price to $50. I still need to
return the watch I borrowed from you so I will go and buy it on the open watch market for $50
and return your watch back to you. That $50 difference is my profit. In other words, I sold your
watch and bought it back a couple days later at a much cheaper price and kept the profits. You
end up with the same watch back while I make a quick $50. This is exactly what’s happening
when you short stocks/crypto. You borrow shares of stock from the bank/broker, sell it, and buy
it back later at a lower price. When you buy it back later, the shares you buy back are returned
to the broker/bank. If you’re still confused, go ahead and ask for more help in the discord.
Shorting can be confusing to understand at first, but it is an excellent way to make money in the
stock and crypto markets.
