Do you want to enter the world of trading with confidence? Here are the most important terms that will make you understand the market like a pro:
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1️⃣ Support
Definition: A price level from which an asset is expected to rise again due to increased demand.
Practical example: If your stock is at $50 and goes to $48 and then bounces back up, that is the support level.
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2️⃣ Resistance
Definition: A price level at which the rise stops due to an increase in supply.
Example: At $60, you may find resistance that prevents the stock from continuing to rise unless it is broken.
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3️⃣ Breakout
What is it?
A strong price movement that breaks through a support or resistance level, indicating the start of a new trend.
Tip: A breakout with high volume may mean a continuation of the trend.
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4️⃣ Trend
Its types:
Uptrend: A continuous upward movement.
Downtrend: A continuous downward movement.
Sideways: Movement within a narrow range.
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5️⃣ Retracement
tariff:
A movement that is opposite to the main trend, but temporary.
Example: In an uptrend, the stock may decline slightly before continuing upward.
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6️⃣ Short Selling
What is it?
A strategy for profiting from falling prices, where an unowned asset is sold with the intention of buying it back later at a lower price.
Practical example:
Sell a stock for $100 and then buy it back for $80 to make a profit of $20.
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7️⃣ Stop Loss
tariff:
A tool to automatically close a trade at a pre-defined loss level.
Why is it important?
Protects capital and reduces large losses.
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8️⃣ Trading Volume
tariff:
A measure of market activity, where higher volume indicates increased interest in the asset.
Example: A large volume during breakage means reliable movement.
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9️⃣ Japanese Candlestick Patterns
Why is it important?
It reveals patterns that can predict future movement, such as:
Bullish Engulfing Candle: Indicates a strong upcoming rise.
Doji candle: means market indecision.
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🔥 Golden tip!
1. Learn the basics of technical and fundamental analysis.
2. Use a demo account to test your strategies.
3. Don't trade without a clear plan.
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