Trading Education Hub

Master stock trading with our comprehensive, interactive learning platform. From beginner basics to advanced strategies, learn at your own pace with quizzes, simulators, and real-world case studies.

50+ Lessons
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๐Ÿ“š

What Are Stocks?

Learn the fundamentals of stock ownership, how the stock market works, and why companies issue shares.

Completed
Beginner
โฐ

Market Hours & Order Types

Understand when markets are open, different order types (market, limit, stop-loss), and execution timing.

75%
Beginner
๐Ÿ“Š

Reading Stock Charts

Master candlestick patterns, volume analysis, and how to interpret price movements on charts.

40%
Beginner
๐Ÿ’ฐ

Understanding Bids & Asks

Learn about bid-ask spreads, market depth, and how liquidity affects your trades.

Not Started
Beginner
๐Ÿงฎ

Fundamental Analysis Basics

Introduction to P/E ratios, earnings reports, revenue growth, and company valuation metrics.

Not Started
Beginner
๐Ÿ“ˆ

Technical Analysis Intro

Learn support and resistance levels, trend lines, and basic technical indicators.

Not Started
Beginner

๐Ÿ“š What Are Stocks?

A stock (also called a "share" or "equity") represents fractional ownership in a company. When you buy a stock, you become a partial owner of that business and have a claim on its assets and earnings.

Companies issue stocks to raise capital for growth, expansion, or operations. Instead of taking out loans, they sell pieces of ownership to investors through the stock market.

Why Do Stock Prices Change?

  • Supply and Demand: More buyers than sellers = price goes up; more sellers than buyers = price goes down
  • Company Performance: Strong earnings reports typically drive prices higher
  • Market Sentiment: News, economic data, and investor psychology affect prices
  • External Factors: Interest rates, inflation, geopolitical events, industry trends

The goal of trading is to buy low and sell high โ€” purchasing stocks when they're undervalued and selling when they appreciate. However, timing the market perfectly is extremely difficult, which is why risk management and strategy are crucial.

Quick Check: What does owning a stock mean?

A) You own a bond issued by the company
B) You own a fractional share of the company
C) You are lending money to the company
D) You have no ownership rights
โšก

Entry Signals

Learn when to enter a trade: breakouts, pullbacks, momentum plays, and support bounces.

Intermediate
๐ŸŽฏ

Exit Strategies

Master profit targets, stop-loss placement, trailing stops, and when to cut losses.

Intermediate
๐Ÿ•

Day Trading vs Swing Trading

Compare short-term day trading with multi-day swing trading strategies and find your style.

Intermediate
๐Ÿ“‰

Trend Following

Trade with the trend using moving averages, MACD, and momentum indicators.

Intermediate
๐Ÿ”„

Mean Reversion Strategies

Profit from overbought/oversold conditions and price returning to average levels.

Advanced
๐Ÿ’ฅ

Breakout Trading

Identify and trade breakouts from consolidation patterns and key resistance levels.

Intermediate

โšก Entry Signals: When to Buy

Knowing when to enter a trade is one of the most critical skills in trading. A good entry can significantly improve your risk-reward ratio.

Common Entry Strategies:

  • Breakout Entry: Buy when price breaks above resistance with strong volume
  • Pullback Entry: Wait for price to dip in an uptrend, then buy near support
  • Momentum Entry: Jump in when price accelerates with high volume and strong trend
  • Support Bounce: Buy when price bounces off a key support level
  • Moving Average Crossover: Enter when fast MA crosses above slow MA (bullish signal)

Pro Tip: Never chase a stock that's already run up 20-30% in a day. Wait for consolidation or a pullback to a better entry point. FOMO (Fear Of Missing Out) leads to buying at the top and increased risk.

๐Ÿ›ก๏ธ Risk Management: Protect Your Capital

Risk management is MORE important than finding winning trades. Professional traders focus on limiting losses and managing position sizes to survive and thrive long-term.

The Golden Rules:

  • Never risk more than 1-2% of your account per trade โ€” This ensures you can survive 20+ losing trades in a row
  • Always use stop-losses โ€” Define your maximum loss before entering the trade
  • Risk-Reward Ratio: Target at least 2:1 or 3:1 reward vs. risk (if risking $100, aim to make $200-$300)
  • Position Sizing: Smaller positions = lower stress and ability to hold winners longer
  • Diversification: Don't put all your capital into one stock or sector
  • Cut Losses Quickly: If a trade goes against you, exit quickly. Don't hope it comes back

Example: You have a $10,000 account. With 1% risk, you can lose $100 per trade. If your stop-loss is $1 away from entry, you can buy 100 shares. If your stop is $2 away, you buy 50 shares. This is position sizing based on risk.

โš ๏ธ Common Mistakes That Blow Up Accounts:

  • Risking 10-20% per trade (one bad streak = account destroyed)
  • Not using stop-losses and "hoping" losing trades recover
  • Revenge trading after a loss to "make it back quickly"
  • Overleveraging with margin or options without understanding risk
  • Averaging down on losing trades (throwing good money after bad)

๐Ÿ“ Position Sizing Formula

Use this formula to calculate how many shares to buy:

Position Size =
(Account Size ร— Risk %) รท (Entry Price - Stop Loss Price)

Example: $10,000 account, 1% risk ($100), entry at $50, stop at $48 (risk $2 per share)

Position Size = $100 รท $2 = 50 shares

Paper Trading Balance
$100,000.00
Total P&L
$0.00

Place a Trade

Your Positions

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P&L
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Position Size Calculator

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Return %:
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Risk/Reward Ratio

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Success

Tesla Breakout Trade - +42% in 3 Days

Setup: TSLA was consolidating in a tight range between $240-$250 for two weeks with decreasing volume, forming a bull flag pattern.

Entry: Bought 200 shares at $251 when price broke above $250 resistance with 3x average volume on positive earnings news.

Management: Set stop-loss at $245 (risk $6/share = $1,200). Target was $280 based on measured move ($12,000 potential).

Exit: Sold at $280 after 3 days when momentum stalled at resistance. Profit = $5,800 (risk/reward was 1:4.8).

๐ŸŽ“ Key Lessons:
โ€ข Patience paid off โ€” waited for clean breakout with volume confirmation
โ€ข Proper position sizing allowed holding through volatility
โ€ข Exited at predetermined target instead of getting greedy
โ€ข Risk was defined from the start (1.2% of $100k account)
Failure

FOMO Mistake: Chasing AMC Squeeze

Setup: AMC already up 85% in one day on social media hype. Trader saw momentum and feared missing out.

Entry: Bought 500 shares at $55 (near the high of day) without a plan, hoping for more upside.

Management: No stop-loss set. Stock immediately reversed, dropping to $48 within an hour. Trader held, hoping for recovery.

Exit: Panic-sold at $42 the next day when stock continued dropping. Loss = $6,500 (13% loss on account).

๐ŸŽ“ Key Lessons:
โ€ข NEVER chase a stock that's already up 50%+ in a day
โ€ข FOMO (Fear Of Missing Out) is not a trading strategy
โ€ข Always have a stop-loss before entering ANY trade
โ€ข Oversized position (27% of account) magnified the damage
โ€ข Emotional decisions (hope, panic) led to poor exits
Loss (Managed)

Apple Trade: Taking the Stop Loss

Setup: AAPL showing bullish reversal pattern with RSI oversold bounce from $165 support level.

Entry: Bought 150 shares at $166, targeting $172 bounce. Set stop-loss at $163 (risk $3/share = $450).

Management: Market turned negative on Fed news. AAPL dropped and hit stop-loss at $163. Trade was closed automatically.

Exit: Stop executed at $163. Loss = $450 (0.45% of $100k account). Stock continued to $158, so stop saved $1,200 additional loss.

๐ŸŽ“ Key Lessons:
โ€ข Not every trade wins โ€” even good setups fail sometimes
โ€ข Stop-loss protected capital and prevented larger loss
โ€ข Small loss (0.45%) is acceptable and part of trading
โ€ข No emotional attachment โ€” followed the plan mechanically
โ€ข One small loss doesn't matter; 100-trade track record does
๐Ÿ“ˆ

Bull Flag

Strong upward move followed by tight consolidation. Breakout continuation pattern signaling more upside.

Bullish
๐Ÿ“‰

Bear Flag

Sharp decline followed by consolidation. Breakdown continuation pattern signaling more downside.

Bearish
๐Ÿ”บ

Ascending Triangle

Flat resistance with higher lows. Bullish pattern indicating buyers gaining control before breakout.

Bullish
๐Ÿ”ป

Descending Triangle

Flat support with lower highs. Bearish pattern showing selling pressure building before breakdown.

Bearish
๐Ÿ’Ž

Double Bottom

Two lows at similar price forming "W" shape. Reversal pattern signaling trend change from down to up.

Bullish
๐Ÿ”ด

Double Top

Two peaks at similar price forming "M" shape. Reversal pattern signaling trend change from up to down.

Bearish
โ˜•

Cup & Handle

Rounded bottom (cup) with small consolidation (handle). Strong bullish continuation pattern.

Bullish
๐ŸŽฏ

Head & Shoulders

Three peaks with middle one highest. Reliable reversal pattern indicating downtrend ahead.

Bearish
๐Ÿ’น

Wedge (Rising)

Converging trendlines sloping upward. Bearish reversal pattern with declining momentum.

Bearish
Ask Price
The lowest price a seller is willing to accept for a stock. The difference between bid and ask is called the spread.
Bid Price
The highest price a buyer is willing to pay for a stock. Buy at the ask, sell at the bid.
Breakout
When price moves above resistance or below support with strong volume, indicating potential trend continuation.
Day Trading
Buying and selling stocks within the same trading day, closing all positions before market close.
FOMO
Fear Of Missing Out โ€” emotional trading mistake of chasing stocks that already moved significantly, often leading to losses.
Limit Order
An order to buy or sell at a specific price or better. Guarantees price but not execution.
Market Order
An order to buy or sell immediately at the best available current price. Guarantees execution but not price.
Moving Average (MA)
Average stock price over a specified period (e.g., 50-day, 200-day). Used to identify trend direction and support/resistance.
Position Sizing
Calculating how many shares to buy based on your account size, risk tolerance, and stop-loss distance.
Resistance
Price level where selling pressure is strong enough to prevent further upward movement. Previous highs often act as resistance.
Risk/Reward Ratio
Comparison of potential loss vs. potential gain. A 1:3 ratio means risking $1 to make $3. Aim for at least 1:2 or better.
Stop-Loss
An order that automatically sells your position if price drops to a specified level, limiting your loss on a trade.
Support
Price level where buying pressure is strong enough to prevent further downward movement. Previous lows often act as support.
Swing Trading
Holding positions for multiple days or weeks to capture larger price moves. Less stressful than day trading.
Technical Analysis
Analyzing price charts, patterns, and indicators to predict future price movements based on historical data.
Volume
Number of shares traded during a period. High volume confirms price moves; low volume suggests weak moves.

โš ๏ธ Important Disclaimer

This educational content is NOT financial advice. Trading stocks carries significant risk, including the potential loss of all invested capital. Most day traders lose money. The case studies and strategies presented are for educational purposes only and do not guarantee profits. Past performance does not indicate future results. Always do your own research, consider your risk tolerance, and consult with a licensed financial advisor before making investment decisions. Never trade with money you cannot afford to lose.