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- Advanced trading terminologies
- Real-life trading examples
- Chart explanations in very simple English
This is the level where beginners start becoming serious traders.
📘 PART 2: ADVANCED TERMINOLOGIES + REAL EXAMPLES + CHART EXPLANATION
🧠 SECTION 1: MORE ADVANCED TRADING TERMINOLOGIES
Here are more important terms every serious beginner must know:
- Candlestick
- Candlestick Pattern
- Timeframe
- Entry Point
- Exit Point
- Trendline
- Break of Structure (BOS)
- Change of Character (CHOCH)
- Supply Zone
- Demand Zone
- Risk-to-Reward Ratio (RRR)
- Confluence
- Slippage
- News Trading
- Trading Session
- Backtesting
- Demo Account
- Live Account
- Psychology in Trading
- Overtrading
Now let’s break them down one by one.
41. Candlestick
A candlestick is how price is shown on a chart.
Each candlestick tells you:
- Opening price
- Closing price
- Highest price
- Lowest price
Simple Example
If price starts at 100 and closes at 110:
👉 That candle is bullish (price went up)
If price starts at 110 and closes at 100:
👉 That candle is bearish (price went down)
42. Candlestick Pattern
This is a combination of candles that gives signals.
Examples:
- Doji
- Engulfing
- Hammer
Why It Is Important
Candlestick patterns help you understand what buyers and sellers are doing.
43. Timeframe
Timeframe shows how long each candlestick represents.
Examples:
- 1 minute
- 5 minutes
- 1 hour
- 1 day
Why It Is Important
A trade on 1-minute chart is very different from a trade on daily chart.
44. Entry Point
This is where you enter a trade.
Why It Is Important
Bad entry = instant loss
Good entry = better profit chance
45. Exit Point
This is where you close your trade.
Why It Is Important
Many beginners enter well but exit badly and lose profit.
46. Trendline
A trendline is a line drawn on the chart to show direction.
- Uptrend → line below price
- Downtrend → line above price
Why It Is Important
It helps you follow the market direction instead of fighting it.
47. Break of Structure (BOS)
This happens when price breaks a previous high or low.
Why It Is Important
It shows that the market direction may continue.
48. Change of Character (CHOCH)
This shows a possible change in trend.
Example:
- Market was going up
- Suddenly breaks downward strongly
Why It Is Important
It helps you catch trend reversals early.
49. Supply Zone
A place where sellers are strong.
Price usually goes down from here.
50. Demand Zone
A place where buyers are strong.
Price usually goes up from here.
51. Risk-to-Reward Ratio (RRR)
This compares your risk to your profit.
Example:
- Risk $10
- Profit $30
RRR = 1:3
Why It Is Important
Good traders focus on high reward, low risk.
52. Confluence
Confluence means multiple signals agreeing.
Example:
- Support level
- Trendline
- Indicator
All pointing to same direction.
Why It Is Important
More confirmation = higher probability trade.
53. Slippage
This happens when your trade enters at a different price.
Why It Is Important
Can cause unexpected loss, especially during news.
54. News Trading
Trading based on news events.
Why It Is Important
News can move market very fast.
55. Trading Session
Different times when markets are active.
Examples:
- London session
- New York session
Why It Is Important
Some sessions are more volatile than others.
56. Backtesting
Testing your strategy on past data.
Why It Is Important
Helps you know if your strategy works before using real money.
57. Demo Account
Practice account with fake money.
58. Live Account
Real trading account with real money.
59. Trading Psychology
Your emotions when trading.
Examples:
- Fear
- Greed
- Revenge trading
Why It Is Important
Even with a good strategy, bad mindset can destroy your account.
60. Overtrading
Trading too much.
Why It Is Important
Leads to unnecessary losses.
📊 SECTION 2: REAL TRADING EXAMPLES (VERY SIMPLE)
🔹 Example 1: Basic Buy Trade
Let’s say:
- You see price at support
- Market is in uptrend
👉 You BUY
- Entry: $100
- Stop Loss: $95
- Take Profit: $115
What Happens?
If price goes up:
👉 You make profit
If price goes down:
👉 Stop loss protects you
🔹 Example 2: Sell Trade
- Price is at resistance
- Market is going down
👉 You SELL
- Entry: $200
- Stop Loss: $210
- Take Profit: $170
🔹 Example 3: Bad Trade (Common Beginner Mistake)
- No stop loss
- Enter randomly
- Use high leverage
👉 One mistake = account wiped
📉 SECTION 3: SIMPLE CHART EXPLANATION
📊 What Is a Chart?
A chart is a visual way to see price movement.
It looks like waves going up and down.
🔺 Uptrend (Market Going Up)
Pattern:
- Higher highs
- Higher lows
👉 Strategy:
Only look for BUY trades
🔻 Downtrend (Market Going Down)
Pattern:
- Lower highs
- Lower lows
👉 Strategy:
Only look for SELL trades
➖ Sideways Market
Pattern:
- Price moving in a range
👉 Strategy:
Trade support and resistance
📍 Support and Resistance (Real Understanding)
Support
Think of it like a floor:
👉 Price hits it and bounces up
Resistance
Think of it like a ceiling:
👉 Price hits it and falls down
🔥 Example Chart Scenario (Simple Thinking)
- Price comes to support
- You see bullish candle
- Trend is upward
👉 That is a strong BUY signal
⚠️ Common Beginner Mistakes on Charts
- Trading without confirmation
- Ignoring trend
- Entering late
- Using too many indicators
🧠 SECTION 4: HOW EVERYTHING CONNECTS
This is where most beginners fail—they learn terms but don’t connect them.
Here is how it all works together:
- Identify trend
- Find support/resistance
- Wait for confirmation (candlestick)
- Enter trade
- Set stop loss
- Set take profit
- Manage risk
🔥 FOLLOW THIS ADVICE (VERY IMPORTANT)
Before you start trading:
✔ Understand all terminologies
✔ Practice on demo account
✔ Start small
✔ Focus on learning, not fast money
IN PART 3 $ 4 YOU WILL LEARN THE COMPLETE BEGINNER TRADING STRATEGY (STEP-BY-STEP + DAILY PLAN)
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