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The document provides an overview of financial markets, detailing types of markets, participants, and trading strategies. It covers technical and fundamental analysis, risk management strategies, and the role of market regulations. Key takeaways emphasize the importance of combining analysis methods for effective trading.

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cambriac300
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17 views1 page

3

The document provides an overview of financial markets, detailing types of markets, participants, and trading strategies. It covers technical and fundamental analysis, risk management strategies, and the role of market regulations. Key takeaways emphasize the importance of combining analysis methods for effective trading.

Uploaded by

cambriac300
Copyright
© © All Rights Reserved
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as TXT, PDF, TXT or read online on Scribd

3.

Class Notes: Financial Markets & Trading Strategies


1. Introduction to Financial Markets
Definition: Platforms where buyers and sellers exchange assets
Types: Stock markets, bond markets, forex, commodities, derivatives
2. Market Participants
Retail Investors: Individual traders investing in stocks, crypto, etc.
Institutional Investors: Hedge funds, pension funds, banks
Market Makers: Provide liquidity by placing simultaneous buy & sell orders
3. Trading Strategies
A. Technical Analysis
Uses historical price charts and indicators
Common indicators:
Moving Averages (SMA, EMA): Trend-following tools
Relative Strength Index (RSI): Measures overbought/oversold conditions
Fibonacci Retracement: Identifies potential reversal points
B. Fundamental Analysis
Evaluates intrinsic value based on financial health
Key Metrics:
Earnings per Share (EPS): Profit allocated per stock share
Price-to-Earnings (P/E) Ratio: Valuation measure
Debt-to-Equity (D/E) Ratio: Financial leverage indicator
C. Risk Management Strategies
Stop-Loss Orders: Automatically exits a trade when a predefined price is hit
Diversification: Investing in multiple asset classes to reduce risk
Hedging: Using derivatives like options to protect against losses
4. Market Regulations
Role of SEC (Securities and Exchange Commission) and CFTC
Importance of compliance with insider trading laws
5. Summary & Additional Resources
Key Takeaways: Use a mix of fundamental & technical analysis for trading
Recommended Books: The Intelligent Investor, Technical Analysis of Financial
Markets

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