Education

EDUCATION

Many people think you need to have a professional financial background or a million dollars to trade in the financial market, however, this is simply not true.
Thousands of people exchange currency every day but most don’t think about what they are really doing.
At Ddtmarkets learning trading is exciting and easy. Using the resources in this section, you’ll learn the basics: how to open a trade, how to read the most popular charts, how to trade on the go and
much more.

What is TECHNICAL ANALYSIS?

Technical analysis is based on the theory that the markets are chaotic (no one knows for sure what will happen next), but at the same time, price action is not completely random. In other words, mathematical Chaos Theory proves that within a state of chaos there are identifiable patterns that tend to repeat. 

This type of chaotic behavior is observed in nature in the form of weather forecasts. 

For example, most traders will admit that there are no certainties when it comes to predicting exact price movements. As a result, successful trading is not about being right or wrong: it’s all about determining probabilities and taking trades when the odds are in your favor.

Part of determining probabilities involves forecasting market direction and when/where to enter into a position, but equally important is determining your risk-to-reward ratio.

Remember, there is no magical combination of technical indicators that will unlock some sort of secret trading strategy. The secret of successful trading is good risk management, discipline, and the ability to control your emotions. Anyone can guess right and win every once in a while, but without risk management it is virtually impossible to remain profitable over time.

What is FUNDAMENTAL ANALYSIS?

Fundamental Analysis is a broad term that describes the act of trading based purely on global aspects that influence supply and demand of currencies, commodities, and equities. Many traders will use  both fundamental and technical methods to determine when and where to place trades, but they also tend to favor one over the other. However, if you would like to use only fundamental analysis, there are a variety of sources to base your opinion.

Factors influencing:

* CENTRAL BANKS

* ECONOMIC RELEASES

* GEOPOLITICAL TENSIONS

* SEASONALITY

WHY IS PSYCHOLOGY IMPORTANT?

While it’s important for a trader to be able to read a balance sheet or a chart, there is a psychological component to trading that shouldn’t be overlooked. Being aware of how fear and greed can impact trading, exercising discipline, and developing trading rules and plans are crucial to a trader’s success.

When traders work on developing specific skills, they can succeed.

 

For example: 

* For the Option Trader. Find strategies that you understand well. Use them when you believe market conditions are appropriate. Track the results. Figure out how well the market environment that you anticipated became reality.

Over time, you will discover which strategies work well – not only because the strategy itself was viable – but more importantly because you adopted it at the right time. Develop the discipline to take those inevitable losses; know when enough is enough and exit winning trades when the remaining potential profit has become too small to justify the risk of earning the last few nickels on a trade. 

* For the Technical Analyst. Learn chart reading. This takes time and is never something you can learn overnight. Even though there is no guarantee of success, any edge helps. If you get a buy signal,  then it is okay to get along — even when you know the signal may be wrong. But your success comes from cutting losses and from studying all the signals. Learn which one’s work often and which are no  better than break even. Study the results and gain an additional edge by knowing which one’s work for you.

* For everyone: Do not trade just to trade. When your results are poor, take a break from trading, but not from analyzing your results. When your strategies do not work, carefully figure out whether it is time to sit on the sidelines or adopt another strategy. but do not just guess at what to do. Have a sound reason for every trade.