Question 1

What do you need to know about risk management?

Accepted Answer

Risk management is how you protect the account from blowing up on one trade. The core: stop loss, take profit, position size, risk per trade, risk/reward ratio, drawdown, risk of ruin, the Kelly criterion, and hedging.

Question 2

How many percent should a stop loss be?

Accepted Answer

There is no universal number — the answer lives in the risk per trade you accept, usually worked backward from the share of the account you can afford to lose on one wrong call.

Question 3

What do you need to know about trading psychology?

Accepted Answer

A trader's biggest enemy is usually themselves. The traps to recognize: FOMO, revenge trading, loss aversion, overconfidence, discipline, and cognitive biases.

Question 4

How do I stop FOMO when trading?

Accepted Answer

FOMO doesn't vanish through willpower — it fades when you recognize its mechanism and have a process to replace the emotional reflex.

Question 5

What do you need to know about the trading process?

Accepted Answer

Consistent trading needs a process, not inspiration. The frame: a trading plan, a journal, backtesting, and a pre-trade checklist.

Question 6

Do I need a trading journal?

Accepted Answer

The journal is the cheapest tool for improving: it turns vague experience into data you can review — and most people skip it precisely by underrating that.

Question 7

What do you need to know about measuring performance?

Accepted Answer

To know whether you're skilled or just lucky, you have to measure. The main metrics: win rate, expectancy, profit factor, the Sharpe ratio, maximum drawdown, and advanced measures like Sortino and Calmar.

Question 8

What win rate is good enough?

Accepted Answer

Win rate on its own is nearly meaningless — it only means something combined with your average win-to-loss ratio.

Question 9

What do you need to know about instruments and markets?

Accepted Answer

This is the base layer: knowing what you trade, where, and at what hours. It covers: asset classes, derivatives, where trading happens (exchange, OTC, spot), and market sessions.

Question 10

Which asset class should a beginner start with?

Accepted Answer

It depends on the risk you can bear and the information you can access — each asset class differs sharply in volatility, leverage, and trading hours.

Question 11

What do you need to know about trading mechanics and costs?

Accepted Answer

An order runs by its own rules, with costs attached to every step. You need: pip, point, tick, lot; leverage and margin; order types; trading costs; volume; and how prices are matched.

Question 12

What does 1:100 leverage mean?

Accepted Answer

One unit of capital controls one hundred units of value — amplifying gains and losses by the same ratio, and the number-one reason new accounts blow up fast.

Question 13

What are the schools of market analysis?

Accepted Answer

Four major schools answer the same question through four different lenses: fundamental analysis, technical analysis, sentiment and flow analysis, and quantitative analysis.

Question 14

Should a beginner learn fundamental or technical analysis first?

Accepted Answer

It depends on the goal: long-term investing leans fundamental, short-term trading needs technicals first — and the two schools don't exclude each other.

Question 15

What do you need to know about market structure?

Accepted Answer

Before any indicator comes the skill of reading the bare chart. It covers: trend, support and resistance, supply and demand, candlesticks, chart types, and timeframes.

Question 16

How do I know a trend has reversed?

Accepted Answer

Look at the structure of highs and lows instead of gut feel — a single pullback is not a reversal.

Question 17

What do you need to know about technical indicators?

Accepted Answer

Indicators fall into four groups by what they measure: trend (MA, MACD, ADX), momentum (RSI, Stochastic), volatility (Bollinger, ATR), and volume (OBV, VWAP).

Question 18

Is RSI above 70 a sell signal?

Accepted Answer

No. RSI above 70 only describes up periods dominating — in a strong trend it can stay there for a long time.

Question 19

What do you need to know about chart patterns?

Accepted Answer

Chart patterns come in two main families plus a toolset: reversal patterns, continuation patterns, and the price-zone tools Fibonacci and Pivot Points.

Question 20

What is Fibonacci drawn for?

Accepted Answer

To sketch in advance the zones where price might react on a pullback — reference zones to watch, not places price is guaranteed to stop.

Question 21

What are the main trading methods?

Accepted Answer

A method is what signal you enter on. The main paths: breakout, trend trading, reversal trading, range and mean reversion, plus advanced schools like Elliott, SMC, ICT, and Wyckoff.

Question 22

How do I avoid false breakouts?

Accepted Answer

You can't entirely — but volume confirmation and the retest help filter out a meaningful share.

Question 23

What are the trading styles?

Accepted Answer

Style is how long you hold — a different axis from entry method entirely. From fast to slow: scalping, day trading, swing, position trading, and long-term investing.

Question 24

Which trading style suits someone with a full-time job?

Accepted Answer

Usually swing or position trading — the styles that don't demand watching the screen during the session.

Question 25

What do you need to know about fundamental analysis?

Accepted Answer

Judging a business by its numbers instead of its chart. The frame: financial statements, valuation measures (EPS, P/E, P/B), profitability and health measures (ROE, ROA, D/E), and valuation with investing styles.

Question 26

Does a low P/E mean a cheap stock?

Accepted Answer

Not necessarily. A low P/E can be a bargain — or a reflection of poor prospects. You have to understand why it's low.

Question 27

What do you need to know about macro and market cycles?

Accepted Answer

Interest rates, inflation, and cycles move every asset at once. It covers: macro forces, the economic calendar and news, market cycles, and correlation with market sentiment.

Question 28

Why does price fall on good news?

Accepted Answer

Because the market reacts to the gap versus expectations, not the absolute number — moderately good news still disappoints when expectations were higher.

Question 29

What do you need to know about portfolio management?

Accepted Answer

Safe trades aren't enough — the whole portfolio has to be safe. It covers: asset allocation, diversification and correlation, and rebalancing with capital allocation across trades.

Question 30

Is holding many tickers already diversification?

Accepted Answer

Not necessarily. If the tickers are highly correlated and move together, the portfolio still behaves like a single asset.

Question 31

Who is in the market with you?

Accepted Answer

Retail, institutions, market makers — and machines. Two areas to grasp: retail versus institutional, and algorithmic and modern trading.

Question 32

Can retail traders beat institutions?

Accepted Answer

Yes — but not on speed or information; through the flexibility and patience that large institutions don't have.

Question 33

What do you need to know about brokers and safety?

Accepted Answer

Losing money to a fake platform is even faster than losing to a bad trade. Two mandatory skills: choosing a regulated broker, and spotting the common scam models.

Question 34

How do I spot a scam platform?

Accepted Answer

The clearest signs: promises of high risk-free returns, easy to deposit but hard to withdraw, and pressure to decide fast.