The Responsible Trader

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Stock Trading Lessons for Beginners is part of the Continuous Education element of my advocacy, Responsible Trading.  In this connection, I am pleased to share these with you. All these lessons are shared without cost to you.  All of these are free.

For your proper guidance, whenever I post the video from Cloud9 Media Limited, the title of my article will end with – Video.  Whenever I post my own, my article will end with – TRT-POV.

Ok, let’s go to  Module 3

MODULE 3 – TREND CONCEPTS

LEARNING OBJECTIVES:

After viewing this video, you should now  know the following:

1. Why do you need to identify a trend
2. The different kinds of trend and what distinguishes one from the other
3. Support and Resistance and what Role Reversal means
4. Trendlines and how to draw them

 

QUICK SUMMARY OF MY TRT-POV 

1. A trend is the core of all of technical analysis. Knowing the trend gives you an edge in your trading.

2. In addition to the 3 directions of trend, a trend has 3 degrees:

a. Major trend – anything over six months

b. Intermediate or secondary tend –  three weeks to three months

c. Near term trend – anything less than two to  three weeks.

3. Prices move in a series of peaks and troughs, and the direction of those peaks and troughs determine the trend of the market. The  peaks and troughs also represent Support and Resistance.

4. Once a Resistance or Support level is broken, its role is reversed. If the price falls below a Support level, that level will become Resistance. If the price rises above a Resistance level, it will often become Support.

5. A trend line is always straight. The price should touch the trend line at least 3 times to confirm that the trend line is valid.

For a more comprehensive discussion, please click the video below:

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JUST A FEW GENTLE REMINDERS

1.  These lessons are not intended to be a substitute for the seminars offered by your broker/s but intended to serve as basic foundation to enable you to better appreciate the seminars offered once you have access to them.

2. I will post the videos and outline the Learning Objectives every Saturday. As a value added, I will post my TRT-POV, (The Responsible Trader’s Point of View)  every Thursday of the following week,  to annotate and explain the trading lessons in a simple and understandable way.

3. After posting this video, I expect you  to view and try to understand the topic discussed and  to compare what I am sharing with what you have  learned. plus your own personal research.   We will repeat the whole process until we finish the whole course.

4.  Learning is better when done in short durations with breaks in between. The learning curve looks like this.

 

Learning curve image source: http://easternseastar21.wordpress.com/2013/05/15/exploring-the-learning-curve/

Rate of learning starts slowly then gradually builds up where it becomes fun and enjoyable. After reaching a certain level it  decelerates to the point of boredom.

If you divide your study periods into shorter durations with breaks in-bteween, you are going to double the point where learning is fun and enjoyable and you will be able to retain more materials in your brain.

 

Learning curve image source: http://easternseastar21.wordpress.com/2013/05/15/exploring-the-learning-curve/

5. To make it easy for you to refer to the entire course, I will always include this as your guide and underline the topic that we are discussing.

The Video lessons are taken from Cloud9 Media Limited’s Master’s Certificate in Technical Analysis covering the following:

Module 1 – Technical Analysis and Dow Theory
Module 2 – Charting Basics
Module 3 – Trend Concepts
Module 4 – Reversal and Continuation Patterns
Module 5 – Volume and Open Interest
Module 6 – Moving Averages
Module 7 – Oscillators and Sentiment Indicators
Module 8 – Further Charting
Module 9 – Elliott Waves and Cycles of Time
Module 10 – Cloud Charts – Ichimoku Technique
Module 11 – Money Management and Computers
Module 12 – How to Build a Trading System

I have created  The  Responsible Trader’s  YouTube Channel: https://www.youtube.com/theresponsibletrader

where I will post all my own videos and other videos that will help us in our learning journey.  Please visit my Channel and subscribe so you will always be updated every time I upload new materials.

I wish you all the best in your learning journey and good luck on all your trades.