In: finance.

Trading

Order book = a queue of orders waiting to be filled
Sellers are red (they want to exchange the base currency for the quote currency), buyers are green (they want to exchange the quote currency for the base currency)
Bid price = where you want to buy
Ask price = where you want to sell

Spot trading

A simple transaction between a buyer and a seller to trade at the current market rate, known as the spot price.
The trade takes place immediately when the order is fulfilled.
Users can prepare spot trades in advance to trigger when a specific spot price is reached, known as a limit order.

Margin trading

Trade with more funds that you actually have, to perform leveraged trading. Uses collateral to borrow that funds.
Liquidation = when the market moves agains your trade and the loss is the same amount as your margin, you lose the funds.

Futures / Contracts

What are crypto futures:
https://binance.com/en/support/faq/360033162052

Long and Short positions

Bull / Bear

Bullish describes a situation when the market is upward ↑
Bearish describes a situation when the market tends downward ↓

Position trading

A position trader buys an investment for the long term in the expectation that it will appreciate in value.
This type of trader is less concerned with short-term fluctuations in price and the news of the day unless they alter the trader’s long term view of the position.
Position traders might be seen as the opposite of day traders. They do not trade actively, with most placing fewer than 10 trades in a year.
https://investopedia.com/terms/p/positiontrader.asp

Day trading

The practice of purchasing and selling a security within a single trading day.
Day traders are attuned to events that cause short-term market moves. Trading based on the news is a popular technique.
https://investopedia.com/articles/trading/05/011705.asp

Swing trading

A style of trading that attempts to capture short- to medium-term gains in a stock (or any financial instrument) over a period of a few days to several weeks. Swing traders primarily use technical analysis to look for trading opportunities.
https://investopedia.com/terms/s/swingtrading.asp

Hints

Rule number one of investing: don’t invest more than you can afford to lose.
Trading too much leads to poor decision making. It’s better to wait for the right moment.
Your own greed will kill you. Stay calm, don’t get too excited, think clear.
Be a good loser. Be humble, you will fail sometimes.

Grid trading bot

This can be found in Binance futures (and probably other exchanges too)
Set lower and upper price; within these ranges the trading is active.
Set the number of grids up to 100.
If a sell order is placed, the stop loss should be above the price range.
If a buy order is places, the stop loss should be below bottom the price range.
IMPORTANT: Set the stop loss and take profit limits.

Quotes

Trading is buying and selling to exploit a change in the price. Investing is acquiring assets for economic reasons.
– Naved Abdali

Market price matters at only two points in time. When you buy and when you sell. In between, it is only a distraction.
– Naved Abdali

Short-term price fluctuation is not the real risk. It is an opportunity.
– Naved Abdali

The last transaction price is the least accurate measure of the fair value.
– Naved Abdali

Knowing when to sell is much harder than knowing when to buy.
– Naved Abdali

Having access to better information is not synonymous with better decisions.
– Naved Abdali

Identical information can lead to opposite conclusions based on relative perceptions of its receivers.
Humans are not machines. They analyze information through the lenses of their experience, knowledge, and cognitive biases.
All of it makes their perception, their unique viewpoint.
– Naved Abdali

Be fearful when others are greedy and greedy when others are fearful.
– Warren Buffet

Links

Trading glossary:

Crypto trading from 0 to 100:
https://youtube.com/watch?v=mQvw5JXXnrQ

Long Trades vs. Short Trades: which should I Use?
It’s all about what you think the price will do
https://thebalance.com/long-and-short-trading-term-definitions-1031122

In day trading, “long” and “short” trades refer to whether a trade was initiated with a purchase or a sale.
In a long trade, you purchase an asset and wait to sell when the price goes up. “Buy” and “long” are used interchangeably.
In a short trade, you borrow an asset, sell it, and hope to buy it back when the price goes down. “Sell” and “short” are used interchangeably.
Shorting a stock is confusing to new traders. In the real world, you have to “own” something to sell it. You can enter short trades (sell assets before buying them) in the hopes that the price will go down so that you can sell it to another trader.

Stop-loss orders
https://thebalance.com/where-to-place-a-stop-loss-order-when-trading-1030867
To limit your risk on a trade, you need an exit plan. When a trade goes against you, a stop-loss order is a crucial part of that plan.
When the price of an asset reaches your stop-loss price, a limit order is automatically sent to close the position at the stop-loss price or a better price.

Technical Analysis 101: How to find support and resistance zones?
https://coinmarketcap.com/alexandria/article/technical-analysis-101-how-to-find-support-and-resistance-zones

Technical Analysis Explained: Elementary Concepts In Trading Cryptocurrency
Technical analysis is a vital tool in the arsenal of many cryptocurrency traders. Here’s how to make sense of those candlesticks and wicks
https://decrypt.co/79954/technical-analysis-explained-elementary-concepts-in-trading-cryptocurrency

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