TRADING UNIVERSITY – Start

Trading Personality Test

*Based on research of over 5,000 traders. Discover your trader type in just 4 minutes. Each trader type has its own temperament, personality, perception and interpretation that ultimately affect how the market is approached and traded. Do You Have the traits of Top Traders?

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Trading Psychology Basics, by Dr. Van Tharp

*These concepts take the mystery out of trading by helping you understand who you are as a trader, how your personal psychology can work for you instead of against you, how to think about and manage risk, and how to develop winning trading systems.

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Money Management Introduction

Money management is a concept that protects your trading capital from losing trades and it is the most important skill for trading. This lesson will demonstrate the importance of applying prudent risk management to avoid large losses that can lead to you losing your entire trading account. The cost of trading is the overall expense that a trader has to incur in order to run their trading business. There are optional costs for things that the trader may wish to purchase, such as news services, custom technical analysis services and faster connections, and compulsory costs, which are expenses that every trader must pay.

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Position Sizing Strategy

*Choosing how much to trade has more impact on the results of your trading than choosing what to trade or when to trade it. Position Sizing is the work of determining how much to put on in any given trade. This underappreciated concept has more power in it to affect your trading results than any other of the mechanical aspects of trading. If you have never learned how important position sizing is, then you will be thrilled with what you learn in this course.

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Kelly Criterion

Based on 100+ previous trades, the Kelly criterion tells you what percentage of your trading account you could sensibly risk on a similar new trading position. The Kelly criterion is an advanced money management tool that helps you work out how much money you can risk on each new trading position based on how well you have done with similar trades in the past.

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Stop Losses

A stop loss is an order that automatically closes your trade at a specified price. They are used as a fail-safe mechanism to protect your trading capital in the event that the trade does not work out. Stop losses are therefore vital in protecting your trading capital, but there are different types of stop losses and a number of ways to determine where they should go.

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Taking Profits

A profit target is a price level on a chart that you set to take profit. Profit targets are the most important part of your trading. It is not your entries where you make a profit or loss, it is your exits. You need to be able to determine a suitable profit target for your trading – one that gives you a realistic profit target, but also gives you a sensible risk to reward.

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Leverage

Leverage is essentially the borrowing of capital to increase your returns on investment. In the forex industry, a forex broker can “lend” capital to a trader, allowing the trader to open a much larger position, just as if they had a much larger trading account than they actually do. This means, however, that a trader can also lose just as much as if they had a much larger trading account.

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Scaling In/Out

Scaling is a method of trade management that allows you to reduce potential losses and maximise potential profits, despite the fact that the future price movement in the market is unknown. There are two types of scaling: scaling in and scaling out.

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