G8 Trade Camp

Module 1: Introduction to Trading

1.1 What is Trading?

Definition: Trading is the act of buying and selling financial instruments (e.g., stocks,
forex, commodities) to make a profit.
Purpose: Traders seek to capitalize on price movements in financial markets.

1.2 Markets Overview

Types of Markets:
Stock Market: Trading shares of companies.
Forex Market: Trading currencies.
Commodities Market: Trading physical goods like gold, oil, and wheat.
Crypto Market: Trading digital currencies like Bitcoin and Ethereum.
Types of Trading:
Spot Trading: Immediate purchase/sale of assets, typically settled within two
business days..
Futures Trading: Contracts to buy/sell an asset at a predetermined price on a future
date.
Options Trading: Buying the right (not obligation) to buy/sell an asset at a specified
price before expiration.
Other Trading Types:
Futures vs. Options: Futures are obligations to trade, while options provide the right
without the obligation.
Margin Trading: Borrowing funds from a broker to trade larger positions.
Example: Using $1,000 to control a $5,000 position.

1.3 Brokers or Exchanges

What is a Broker or Exchange? A broker or exchange provides access to markets for
trading and investment through platforms.
Examples of Brokers or Exchanges:
Stocks: TD Ameritrade (Thinkorswim), Interactive Brokers, E*TRADE.
Forex: OANDA, FXCM, IC Markets.
Crypto: Binance, Coinbase, Kraken.
1.4 Tools and Resources

Trading Platform for Analysis: Use TradingView for charting and analysis.
Set up a TradingView account.
Learn to navigate the TradingView interface:
Drawing tools: Rectangles, trendlines, and rays.
Chart settings: Candlestick charts.
Timeframes: 1-minute to 1-month intervals.
Forex Factory Calendar: Stay updated on economic events and news releases that can
impact the forex market. Use the calendar for tracking upcoming events and volatility.

Module 2: Days of Trading and Trading Sessions

2.1 Trading Sessions
New York Session: Open from 8:00 AM to 5:00 PM EST. Most liquid and volatile,
especially during overlap with London.
London Session: Open from 3:00 AM to 12:00 PM EST. Known for high liquidity and
volatility.
Asian Session: Open from 7:00 PM to 4:00 AM EST. Typically less volatile than the other
sessions.

2.2 Most Volatile Times

During Overlap: The overlap of the London and New York sessions (8:00 AM to 12:00 PM
EST) is when the market is most volatile due to the high volume of trading activity.
News Events: Economic data releases and news events (e.g., Non-Farm Payrolls,
interest rate decisions) can cause significant market movements.

Module 3: Types of Analysis

3.1 Technical Analysis
Definition: Technical analysis is the study of past price movements and patterns to predict
future price behavior. It relies solely on price charts and volume data rather than
fundamental factors like earnings or economic data.
 Purpose: To identify trading opportunities by analyzing trends, support/resistance levels,
and market behavior.
Focus Tools: Price action, chart patterns, and key levels using tools like rectangles,
trendlines, and rays.

3.2 Fundamental Analysis

Definition: Fundamental analysis involves analyzing economic indicators, financial
reports, company performance, and broader market conditions to evaluate the intrinsic
value of an asset.
Focus Areas: Economic data, earnings reports, interest rates, inflation, and geopolitical
events.
Purpose: To assess the underlying value of an asset and make informed predictions
about its future price movement based on fundamentals.

3.3 Sentiment Analysis

Definition: Sentiment analysis gauges the overall mood of market participants (bullish or
bearish) by assessing factors like news, social media, and market trends.
Purpose: To determine market sentiment and potential price movements driven by
collective trader behavior.

Module 4: Technical Analysis Basics

4.1 What is Technical Analysis?
Definition: Technical analysis is the study of past price movements and patterns to predict
future price behavior. It relies solely on price charts and volume data rather than
fundamental factors like earnings or economic data.
Purpose: To identify trading opportunities by analyzing trends, support/resistance levels,
and market behavior.
Focus Tools: Price action, chart patterns, and key levels using tools like rectangles,
trendlines, and rays.

4.2 Candlestick Basics

Definition: A candlestick represents price movement over a specified timeframe.

Body: Difference between open and close prices.
Wicks (Shadows): High and low prices during the timeframe.
 Bullish Candle: Close is higher than open (usually green).
Bearish Candle: Close is lower than open (usually red).

4.3 Timeframes
Short-Term: 1-minute, 5-minute, 15-minute charts for day trading.
Medium-Term: 1-hour, 4-hour charts for swing trading.
Long-Term: Daily, weekly charts for position trading.
Match the timeframe to your trading style.

4.4 Chart Drawing Basics

Rectangles: Highlight areas of interest like order blocks or consolidation zones.
Trendlines: Draw diagonal lines connecting highs or lows to identify trends.
Rays: Extend lines to mark potential future price movements.

Module 5: Types of Trading

5.1 Trading Styles
Day Trading: Short-term trades lasting minutes to hours. Focus on smaller timeframes
(e.g., 1-minute to 15-minute).
Swing Trading: Medium-term trades lasting days to weeks. Focus on higher timeframes
(e.g., 4-hour, daily).
Position Trading: Long-term trades lasting weeks to months. Focus on daily and weekly
charts.

Example Strategies:

ICT (Inner Circle Trader) Strategy:

Focus on concepts like liquidity, FVGs, order blocks, and PD arrays.
Combines price action analysis with institutional market behavior.
Trend Following: Trades are entered in the direction of the prevailing trend, using tools
like trendlines and moving averages.
Breakout Trading: Focus on trading price breaks from significant levels of support or
resistance.

5.2 ICT Concepts

Liquidity:
 Areas where stop losses are likely to be placed (above highs, below lows).
Price often moves to grab liquidity before reversing.
Fair Value Gaps (FVG):
Imbalances between buying and selling.
Identified as gaps in price movement on the chart.
Price often returns to these gaps.
Order Blocks:
Areas where institutional traders have placed significant orders.
Typically found at the start of major price moves.
Premium and Discount (PD) Arrays:
Premium Zones: Areas above the 50% level of a trading range where selling
opportunities are more likely.
Discount Zones: Areas below the 50% level of a trading range where buying
opportunities are more likely.
Use the Fibonacci tool on TradingView to identify the 50% level.

5.3 Identifying Key Levels

Use rectangles to mark areas of liquidity and order blocks.

Look for patterns of higher highs/lows or lower highs/lows to assess trends.

5.4 Trading Types

Spot Trading: Buying and selling assets directly for immediate delivery.
Futures Trading: Trading contracts that obligate the buyer/seller to transact an asset at a
predetermined price and date.
Options Trading: Trading contracts that give the right, but not the obligation, to buy or sell
an asset at a specific price before a certain date.
Margin Trading: Borrowing funds to trade larger positions than your account balance
would allow.

5.5 Understanding Leverage

What is Leverage?
Leverage allows traders to control larger positions with a smaller amount of capital.
For example, a leverage of 10:1 means you can control $10,000 with $1,000 of your
own money.
Leverage Calculation:
Formula: Position Size = Account Balance × Leverage
 Example: If your account balance is $1,000 and you use 10:1 leverage, you can trade
a position size of $10,000.
Impact on Price Movements:
A 1% move in price affects the entire leveraged position.
Example: A $10,000 position with a 1% price change results in a $100 gain or loss.
Risks:
Higher leverage amplifies both profits and losses.
Ensure proper risk management when using leverage.

Module 6: Risk Management

6.1 Risk-to-Reward Ratio (R:R)

Definition: Compares potential profit to potential loss.

Example: A 1:3 R:R means risking $1 to potentially make $3.
Rule of Thumb: Always aim for a favorable R:R, such as 1:2 or higher.

6.2 Setting Stop Losses

Place stop losses below/above recent lows/highs.
Adjust based on the size of the liquidity or FVG zone.

6.3 Position Sizing

Only risk a small percentage of your account per trade (e.g., 1-2%).
Calculate position size based on distance to stop loss.

Module 7: Trading Psychology

7.1 Key Concepts
Discipline: Stick to your plan; avoid impulsive decisions.
Patience: Wait for high-probability setups.
Emotional Control: Avoid revenge trading after losses.

7.2 Common Pitfalls

Overtrading: Trading too frequently without quality setups.

 Greed: Holding positions too long to chase higher profits.
Fear: Exiting trades prematurely or avoiding trades altogether.
FOMO (Fear of Missing Out):
Definition: The anxiety of missing a profitable trade, leading to impulsive entries.
Example: Entering a trade late in a trend because you fear missing further price
movements, often resulting in losses when the trend reverses.

7.3 Mindset Tips

Keep a trading journal to track progress.
Focus on process over profits.
Accept that losses are part of trading.

Module 8: Building a Trading Plan

8.1 Components of a Trading Plan
Trading Style: Day, swing, or position trading.
Timeframes: Which charts you will focus on.
ICT Concepts: Liquidity, FVG, order blocks, PD arrays.
Risk Management Rules: Max risk per trade and R:R.

8.2 Execution
Enter trades only when all criteria align.
Monitor trades and adjust stop losses to lock in profits.

Module 9: Trading Terms

Ask Price: The price at which a trader can buy an asset.
Bid Price: The price at which a trader can sell an asset.
Spread: The difference between the bid and ask prices.
Pip (Percentage in Point): The smallest unit of price movement in forex trading.
Lot Size: The quantity of the asset being traded.
Slippage: The difference between the expected price of a trade and the actual price.
Margin: The amount of capital required to open and maintain a position.
 Stop Loss: A predetermined price level to limit losses.
Take Profit: A predetermined price level to lock in profits.
Volatility: The degree of price movement in an asset over time.
Liquidity: The ability to buy or sell an asset without significantly affecting its price.
Entry: The specific price level at which a trader enters a trade.
Price: The current value or cost of an asset.
Fair Value Gap (FVG): An imbalance in price movement caused by a gap between buying
and selling. It often represents an area where price is likely to return before continuing its
trend.
Order Block: A price zone where institutional traders have placed significant buy or sell
orders. This is often seen as a strong support or resistance level.
Liquidity Zone: Areas where stop losses or large orders are clustered. Price moves
towards these areas to capture liquidity before reversing direction.
Premium/Discount Zones (PD Arrays): Price areas above or below the 50% level of a
trading range, indicating potential for either a bearish (premium) or bullish (discount) trade.
Premium Zone: Areas above the 50% level in a market's price range, typically seen
as selling opportunities.
Discount Zone: Areas below the 50% level in a market's price range, often seen as
buying opportunities.
Long Position: A trade where a trader buys an asset, expecting its price to rise.
Short Position: A trade where a trader sells an asset, expecting its price to fall.
Bullish: A market sentiment or trend where prices are expected to rise.
Bearish: A market sentiment or trend where prices are expected to fall.
Trend: The general direction in which an asset's price is moving (up, down, or sideways).
Uptrend: A series of higher highs and higher lows.
Downtrend: A series of lower highs and lower lows.
Sideways Trend: When the price moves within a range without clear direction.
Swing High: A peak or top in the price, typically used in identifying resistance levels.
Swing Low: A trough or bottom in the price, typically used in identifying support levels.

Final Notes:
1. Consistency is key. Master the basics before moving to advanced topics.
2. Use rectangles, trendlines, and rays to build a clear, clutter-free chart.
3. Avoid overcomplicating with indicators.