Educational materials

Lesson 1. Introduction to Trading

• What is Trading

  Trading is the process of buying and selling financial assets on the market to profit from price differences.Simply put, a trader earns by buying low and selling high (or vice versa in short selling).

  Trading takes place in financial markets including Forex, stocks, cryptocurrencies, and commodities (gold, oil, etc.).

• Types of Trading: Short-term, Medium-term, Long-term

  Short-term trading

  Trades are opened for a short period — from a few seconds to a few hours. This style requires high concentration, quick reactions, and constant chart monitoring. Examples: scalping, intraday trading.

  Medium-term trading

  Positions are held from several days to weeks. Focus is on technical analysis and news. Medium-term traders analyze trends and entry points to catch the wave of stable price movements.

  Long-term trading

  Closer to investing. Positions may be held for months or even years. Strategies rely on fundamental analysis: analyzing companies, sectors, and the global economy. Suitable for those not willing to spend much time on charts.

• Assets: Currencies, Stocks, Cryptocurrencies, Indices, Commodities

  Currencies

  • Trading currencies occurs on the Forex market. Currency pairs such as EUR/USD, GBP/JPY are traded. This is the most liquid and accessible market with fast execution and 24/7 trading.

  Stocks

  • Buying and selling company shares such as Apple, Google, Tesla. Profits come from stock price growth or dividends. Popular for both long-term investors and short-term traders.

  Cryptocurrencies

  • Digital assets like Bitcoin, Ethereum, Litecoin. Highly volatile, making them interesting for active trading. Trading is available 24/7.

  Indices

  • Reflect the overall performance of a group of stocks. For example, S&P 500 includes 500 largest U.S. companies. If the index rises, most constituent stocks increase in price. Suitable for trading market direction.

  Commodities

  • Physical demand products: oil, gold, silver, gas, wheat, etc. Often used as "safe-haven assets" during market instability.

Lesson 2. How the Market Works

• Law of Supply and Demand

  • Demand is the willingness and ability to buy an asset.

  • Supply is the willingness and ability to sell an asset.

  • When demand exceeds supply, prices rise — more people want to buy than sell. When supply exceeds demand, prices fall — more sellers than buyers.

  • This balance constantly changes, driving prices. Traders analyze supply and demand to predict future price movements.

• What is Liquidity

  Liquidity measures how quickly and efficiently an asset can be bought or sold in the market.

  • High liquidity = easy entry/exit, low spread, quick order execution.

  • Low liquidity = fewer participants, high price volatility, possible delays in order execution.

  • For example, pairs like EUR/USD have high liquidity, rare cryptocurrencies have low liquidity.

  • Liquidity affects trade quality and slippage risk.

• Market Participants: Traders, Brokers, Market Makers

  The financial market is not just a computer system. It operates through different participants:

  Traders

  • Individuals or companies buying and selling assets to earn profits. Can be beginners or professionals with large capital.

  Brokers

  • Intermediaries between traders and the real market. They provide platforms, liquidity, and technical support. Brokers earn via commissions or spreads.

  Market Makers

  • Large participants constantly quoting buy and sell prices. Their goal is to provide liquidity, prevent sharp price jumps, and ensure active market pricing.

  • They earn on the spread — the difference between buy and sell prices.

Lesson 3. Trading Platforms

• Placing Orders

  On the Investio platform, placing an order is quick and straightforward:

  a. Select the asset — specify what to trade (e.g., EUR/USD).

  b. Enter trade amount — specify how much to invest.

  c. Choose direction:

  • "Up" — if expecting price to rise.

  • "Down" — if predicting price to fall.

  d. Set trade duration (for FTT) or stop-loss/take-profit levels (for Forex).

  e. Confirm trade — click to open the position.

• After opening, monitor trades via chart and "Open Positions" panel.

• Chart and Indicator Settings

  Proper chart setup is crucial for informed decisions. Investio provides flexible tools.

• Chart Types:

  • Line

  • Candlestick (most popular)

  • Bar

  • Heikin-Ashi

• Timeframes:

  • From 15 seconds to several days, chosen according to strategy.

• Adding Indicators:

• Under "Indicators" select technical tools such as:

  • Moving Averages (MA)

  • RSI (Relative Strength Index)

  • Bollinger Bands

  • MACD

  Each indicator can be customized: period, color, calculation method.

• Drawing on Charts:

  • Trend lines, support/resistance levels, shapes, annotations — for visual analysis and planning.

Lesson 4. Fundamental Analysis

• How News Affects the Market

  Fundamental analysis is based on evaluating economic and political factors that influence asset price movements. Main principle: news moves the market.

  For example:

  • Positive economic growth data may strengthen a country's currency.

  • Negative news (e.g., conflicts, crises, company bankruptcies) can cause sharp declines in stock or currency prices.

  • Unexpected central bank decisions also lead to high volatility.

  The more important the news, the stronger its market impact. Traders closely monitor charts during releases and often trade on news.

• Economic Calendar

  Economic Calendar is a tool showing dates and times of important macroeconomic events and data releases. It includes:

  • Release time

  • Event/report name (e.g., "US Unemployment Rate")

  • Previous value

  • Forecast

  • Actual value (appears after release)

  • Expected market impact (usually indicated with 1, 2, or 3 "bulls")

  Traders use the calendar to:

  • Not miss important events

  • Avoid entering the market before volatile news (if not part of the strategy)

  • Build predictions based on differences between actual and expected figures

  The economic calendar is available on the Investio platform and updates in real time.

• Important Factors: Inflation, Interest Rates, Company Reports

  Inflation

  • Overall price level increase. High inflation reduces money purchasing power.

  • Central banks react by adjusting interest rates. Inflation reports (e.g., CPI) strongly affect currency markets.

  • Interest Rates

  • Set by central banks (e.g., US Fed, ECB). Rate hikes usually strengthen currency; rate cuts weaken it. Traders follow central bank statements to forecast currency moves.

  • Company Reports

  • Stock prices depend on financial reports. Important to analyze:

    • Revenue and profit

    • Growth forecasts

    • Investments and debt

  • Strong reports = stock price rise. Weak reports = decline. Earnings season (quarterly) is crucial for stock trading.

Lesson 5. Technical Analysis

• Charts: Line, Candlestick, Bar

  Reading charts is crucial in technical analysis, as they reflect price behavior. Main types:

• Line Chart

  Shows only the closing price per chosen timeframe. Looks like a simple line connecting points. Good for overview but lacks intra-period detail.

• Candlestick Chart (Japanese Candles)

  Most popular and informative. Each candle shows four prices:

  • Open

  • High

  • Low

  • Close

• Candle color (usually green/red) visually shows price rise or fall. Candle patterns provide entry signals.

• Bar Chart (OHLC)

  Similar to candlestick but different appearance. Each bar shows open, high, low, close. Often used by experienced traders.

• Support and Resistance Levels

  Key elements:

  • Support — level where price usually stops falling and bounces up; demand increases.

  • Resistance — level where price often reverses downward; supply increases.

  Formed from previous highs and lows. Helps determine:

  • Where to open trades

  • Where to set stop-loss/take-profit

  • Potential reversals or breakouts

  Breakout = trend continuation. Bounce = possible reversal.

• Trend

  Trend — overall price direction:

  • Uptrend — series of higher highs and higher lows

  • Downtrend — series of lower highs and lower lows

  • Flat (sideways) — price moves in narrow range without clear direction

  Trends are the foundation of trading strategies. "Follow the trend" is a key rule.

  Price Channels

  Price moves within ranges:

  • Upper boundary = resistance

  • Lower boundary = support

  Channels help define entry/exit points, especially in trend trading.

Lesson 6. Indicators

Moving Averages (MA)

MA smooths price over chosen period. Helps identify trend direction and filter market noise.

Types:

• SMA (Simple) — average of selected periods

• EMA (Exponential) — gives more weight to recent prices, faster reaction

Usage:

• Price above MA — uptrend

• Price below MA — downtrend

• MA crossover (e.g., fast crosses slow upward) — buy signal

RSI, MACD, Stochastic

RSI measures price momentum and shows overbought/oversold conditions. Range: 0–100

• 70+ — overbought (possible downward reversal)

• 30- — oversold (possible upward reversal)

RSI works well in sideways markets.

• MACD

Measures difference between two EMAs (usually 12 & 26), identifies trend strength and entry points. Components: MACD line, Signal line, Histogram. Signals: cross below = buy, cross above = sell. Histogram shows strength.

• Stochastic Oscillator

Shows how close current price is to range. Determines overbought/oversold. Range: 0–100. Above 80 = overbought, below 20 = oversold. Line cross in these zones = potential trade signal.

Combining Indicators

Single indicator rarely gives 100% signals. Experts combine:

• MA + RSI — trend + entry point

• MACD + Stochastic — momentum & reversal

• MA + MACD — trend confirmation

Optimal: 2–3 indicators, each covering trend direction, momentum, and entry timing.

Lesson 7. How to Open a Trade

• Choosing an Asset

  Before opening a trade, it is important to select the right asset. On the Investio platform, you can trade:

  • Currency pairs (e.g., EUR/USD) — most popular, suitable for most strategies.

  • Cryptocurrencies (BTC, ETH, etc.) — highly volatile.

  • Stocks — suitable for those interested in companies and fundamental analysis.

  • Indices and commodities (gold, oil, Nasdaq, etc.) — often used for portfolio diversification.

• Choose an asset considering liquidity, market hours, and your trading strategy.

• Setting Amount, Stop-Loss, and Take-Profit

  After selecting an asset, set the trade parameters:

  1. Trade Amount

  This is the investment size. It is recommended not to risk more than 2–5% of your account on a single trade — a basic risk management rule.

  2. Stop-Loss

  Level at which the trade will automatically close with a loss if the market moves against you.

  Example: You buy an asset at 1.2000 and set a stop-loss at 1.1950. If the price drops to 1.1950, the trade closes and the loss is limited.

  Purpose: to limit losses and avoid deep drawdowns.

  3. Take-Profit

  Level at which the trade automatically closes with profit.

  Example: You buy at 1.2000 and set take-profit at 1.2050. When the price reaches this level, you lock in the profit.

  Purpose: to secure gains and automate trading.

• Real Trade Examples

  Example 1: Buy/Long Trade

  • Asset: EUR/USD

  • Trend: Uptrend

  • Indicators: Price above MA, RSI around 40

  • Entry: 1.1000

  • Stop-Loss: 1.0950 (50 points down)

  • Take-Profit: 1.1100 (100 points up)

  • Risk/Reward: 1:2 — good ratio

  Result: Price reached 1.1100 — take-profit triggered, profit secured.

  Example 2: Sell/Short Trade

  • Asset: Gold

  • Signal: Bearish engulfing pattern + RSI above 70

  • Entry: 1980

  • Stop-Loss: 1990

  • Take-Profit: 1960

  Result: Price reversed, take-profit triggered — trader profited.

Lesson 8. Ready-Made Strategies

• Bounce Strategy

  Essence: Open trades at support/resistance bounces, expecting the price to reverse instead of breaking through.

• How it Works:

  • Identify a strong level (price has reversed here before).

  • Wait for price to approach the level again.

  • Check candlestick pattern (e.g., hammer, engulfing).

  • Enter the trade on reversal.

  Example: Price reaches support at 1.1000 and forms a long lower wick → buy signal.

  Recommended tools: Levels, candlestick patterns, RSI (to confirm oversold).

• Breakout Strategy

  Essence: Enter trades when a level is broken, expecting continuation in breakout direction.

  How it Works:

  • Find a key level tested multiple times.

  • Wait for a strong candle breaking the level.

  • Confirm with volume or indicator (e.g., MACD).

  • Enter in breakout direction.

  Example: Price tested resistance at 1.2000 several times, then broke it with a strong candle — enter buy.

  Recommended tools: Levels, MACD, volume, strong-bodied candles.

• RSI + Moving Average Strategy

  Essence: Combine RSI and MA to find entry points.

  How it Works:

  • Set RSI(14) and MA (e.g., EMA 50).

  • Price above MA and RSI below 40 → potential buy on pullback.

  • Price below MA and RSI above 60 → potential sell.

  Example: Price in uptrend, RSI drops below 40 → pullback ends → buy entry.

  Recommended tools: EMA 50/100, RSI(14), levels.

• Trend-Following Approach

  • Identify trend direction (via MA or trendline).

  • Wait for pullback to MA or level.

  • Enter on confirmation (candle, indicator, pattern).

  Example: EMA shows uptrend, price pulls back to MA and forms bullish engulfing → buy entry.

  Recommended tools: EMA, trendlines, RSI, Fibonacci levels.

Lesson 9. Capital Management

• How Much to Risk per Trade

  Risk — amount you are willing to lose if the market moves against you. Risk control is key to long-term success.

  • Optimal risk per trade: 1–2% of trading account.

  • Risk too much → one loss can significantly reduce capital.

  • Risk too little → slow, minimal profit.

  Example: $1000 account, 2% risk = $20. Max loss if stop-loss is hit is $20.

• 2% Rule

  Do not risk more than 2% of total deposit per trade. Helps to:

  • Preserve capital during losing streaks.

  • Stay in the game and have resources for future trades.

  • Maintain psychological stability — less stress.

  How to calculate:

  a. Determine stop-loss distance in points.

  b. Calculate lot size/trade amount so max loss ≤ 2% of deposit.

  How to avoid blowing your account

  a. Always set stop-loss — your insurance.

  b. Do not risk >2% per trade.

  c. Do not increase risk after losses — common beginner mistake.

  d. Use appropriate leverage — too high increases risk.

  e. Plan trades and stick to plan — avoid impulsive decisions.

  f. Psychological control — stay disciplined, avoid emotions.

Lesson 10. Emotions in Trading

• Fear and Greed: How They Interfere

  Fear is one of the strongest emotions, causing traders to exit trades too early or not enter the market at all. It leads to indecision and missed opportunities.

  Greed is the desire to make maximum profit from a single trade. It often results in holding positions too long, ignoring stop-loss, and taking excessive risks.

  Both emotions cause mistakes:

  • Exiting a profitable trade too early (fear of losing profits).

  • Holding a losing position hoping for a reversal (greed).

  • Opening trades too frequently without a clear strategy (impulsiveness).

• Self-Discipline

  Self-discipline is the ability to control your actions and emotions, follow a trading plan, and stick to risk management rules.

  • Essential for consistent results.

  • Helps stay aligned with your chosen strategy.

  • Allows following pre-defined entry and exit conditions.

  • Helps remain calm in stressful situations.

  Developing self-discipline takes time and practice, but it is key to trading success.

• Keeping a Trading Journal

  Trading journal is a tool for analyzing and improving your trading.

  • Record each trade: date, asset, entry and exit prices, profit or loss, reason for the trade.

  • Note your emotional state before and after the trade.

  • Analyze mistakes and successful decisions.

  • The journal helps identify recurring errors and weak points.

  • Promotes development of self-discipline and objectivity.

  Regular journaling significantly improves trading quality and personal growth as a trader.

Lesson 11. Motivation and Burnout

• How Not to Quit After Initial Mistakes

  Mistakes are a natural part of learning trading and happen to all beginners.

  • See mistakes as experience and opportunity to improve, not as a reason to give up.

  • Learn to analyze your errors and take lessons from them.

  • Remember: successful traders started from scratch and made mistakes too.

  • Community support and interaction with experienced traders help maintain motivation.

• Goal Setting

  Clearly define your goals: financial, educational, and psychological.

  • Goals should be specific, measurable, achievable, relevant, and time-bound (SMART).

  • Example: "Increase deposit by 10% in 3 months" or "Learn 3 new strategies by the end of the month".

  • Goals help maintain focus, motivation, and sense of progress.

  • Break large goals into smaller steps for easier tracking and control.

• Balancing Trading and Rest

  Trading is mentally and emotionally demanding, requiring energy and focus.

  • Regular breaks and sufficient rest are necessary to maintain productivity.

  • Avoid fatigue and burnout to prevent impulsive decisions.

  • Schedule time for hobbies, sports, and social activities outside the market.

  • Balancing work and rest helps maintain a positive mindset and mental clarity.

Lesson 12. Candlestick Patterns

• Engulfing, Doji, Hammer

  Engulfing

  • Bullish Engulfing — a candle completely covering the previous bearish candle's body. ⟶ Signal of a possible upward reversal after a downtrend.

  • Bearish Engulfing — a large red candle completely covers the previous green candle. ⟶ Signal of a downward reversal after an uptrend.

  Doji

  • A candle with almost no body: opening price ≈ closing price. ⟶ Indicates market indecision. Appearing after a trend may signal weakening or reversal.

  Hammer

  • Small body at the top and long lower shadow. Appears after a decline. ⟶ Signal of a possible upward reversal.

  • Inverted Hammer — an upside-down form, also indicates a reversal.

  How to interpret signals

  • Candlestick patterns should be confirmed with volume, support/resistance levels, or other indicators.

  Better not to use candlestick signals alone — combine them with technical analysis.

Lesson 13. News Trading

• How to Read Reports

  Follow the economic calendar: data is released on inflation, GDP, interest rates, unemployment, etc.

• Important Reports: NFP (USA), CPI, central bank decisions, company reports (for stocks).

• Compare actual results with forecasts:

  • Better than forecast — positive effect.

  • Worse than forecast — negative effect.

• Volatility Strategies

  Breakout strategy:

  • Open a position in the direction of sharp movement after news release.

  • Often used with pending orders above and below the current price.

  Pullback strategy:

  • Wait for the market to react sharply, then catch the return (pullback) to the fair price.

  Pre-news trading:

  • Used when a strong expectation of a specific outcome exists (e.g., Fed rate hike).

Lesson 14. Creating Your Own Strategy

• How to Test a Strategy

  Backtesting (on historical data):

  • Check how the strategy would have worked in the past.

  • Use platforms with the ability to scroll charts back or simulators.

  Forward-testing (on demo account):

  • Real-time testing on the live market without risk of loss.

  Trading journal:

  • Record all parameters and results — this allows analysis of effectiveness.

• What to Consider During Optimization

  • Simple and clear

  • With specific entry and exit conditions

  • Maximum drawdown

  • With logic for capital and risk management