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Foundation Trading &

Investment Programme
Lesson 1:
The Opening Bell

Presented by:
Tom Daly
Director of Education

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Risk Warning
Any Advice or information provided by the Academy of Financial Trading is General
Advice Only - It does not take into account your personal circumstances, please do not
trade or invest based solely on this information. By viewing any material provided by the
Academy of Financial Trading or using any information or tools you agree that this is
general educational material and you will not hold any person or entity responsible for
loss or damages resulting from the content or general advice provided here by The
Academy of Financial Trading, its employees, directors or fellow members. Futures,
Contracts for Difference (CFDs), Options, and spot currency trading have large potential
rewards, but also large potential risks. You must be aware of the risks and be willing to
accept them in order to invest in CFDs and leveraged forex markets. Don't trade with
money you can't afford to lose. No representation is being made that any account will or
is likely to achieve profits or losses similar to those discussed in any material provided by
the Academy of Financial Trading. The past performance of any trading system or
methodology is not necessarily indicative of future results.
.
Week 1: Laying the Foundation

1 Lesson 1: The Opening Bell


Lesson 2: Leverage, Margin & all the Jargon
Course Agenda
Week 2: Technical Analysis Made Easy

Lesson 3: The Trading Begins


Lesson 4: Candlesticks Shedding Light on Opportunities 2

Week 3: Finding Opportunities

3 Lesson 5: Technical Charting 101


Lesson 6: Becoming a Counter Retail Trader

Week 4: Return on Investment

Lesson 7: Psychology of Real World Trading


4
Lesson 8: Return on Investment & Protecting your Capital
Academy of Financial Trading 3
About Us
A brief history of the Largest Live Educator on the Planet. Bringing education to
the masses
We believe everyone in the
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Founded in 2012 / 5 years

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Delivering Great Education, Affordably and Accessibly, To Everyone.

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INCLUDED: Trading the markets FAQ

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Webinar Slides for every lesson
Trading equities
Trading equity indices
Trading commodities
Summary
Live Notes for(Live
Trading Interaction every lesson
Trading Videos)
The Oil Market
The EUR/USD

Bonus Videos
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Lesson 1 Agenda

About us The Markets Summary

Brief History of Us Financial Markets Explained


Course Agenda What is Tradable Course Interaction
Members Area
Trading vs Investing
Community Q&A
Instrument Types

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Trading or Investing =
1 Financial Speculation
So many different
terms

Are they are the


same?

2
Its actually quite simple.

Trading is for those with a lower initial


investment

3 Investment is for those having a large sum to play with


($100,000+) required for a diverse portfolio which is
crucial when it comes to eliminating risk.

4 Trading also brings higher returns.

Sound good?..... Stay tuned!

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Financial Markets Explained

1 All Tradable objects are similar


because human beings trade
them

2 Prices on a chart are simply a consensus of agreement of


value as set by buyers and sellers based on current
conditions

3 View charts as if they were just a market place for any other
product

4 Its people who move markets

5 Every person here has traded before

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Financial Markets Explained
The Purpose of the Financial Markets is to facilitate the following:

01 Raising Capital
OPTION

02 The Transfer of Risk


OPTION

03 Price Discovery (price


determination
OPTION through interaction)

04 The Transfer of
Liquidity &
OPTION International Trade

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Online trading gives
Financial Market Access
1 you the ability to
speculate on future Placing a trade is easy! The reasoning
price movement. behind the trade is a different story..

2 You can do this 24 hours a day from Sunday


evening to Friday evening (Forex)

3 Other markets have an open and closing time


as they are traded on an exchange.

4 In order to be successful you need to


know what you are doing just
because you can, doesnt make it easy

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In order to trade successfully
you need to know the following

What is Tradable Who else is Trading When and How to Trade

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CFDs
Speculate with out acquiring. Large
leverage. Possibility for large returns.
Can assist with diversification. Direct
Market Access. Lesser charges

Spread Betting
Gains are tax free. Conflict
of interest.

Futures
Physical delivery dates.
Some leverage.

Options
Option to purchase X price
at Y time without actually
acquiring.

D C B A
What can we
trade?
Lets look in detail at

$
what instruments
are traded and why .

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Currencies Forex

Easy Access 01 Liquid


Enter and exit easily rather Forex markets are very
than waiting for a counter liquid (popular). Mature and
party Developed.

04
02
Familiarity Strategy
The trader is at the very Traders can relate to the
least familiar, with their own trajectory of an instrument
national currency based on known economic
03 factors

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Commodities - Energies
Global Outlook
Macro Economics dictate assumed
future demand. e.g: If recovery stalled,
markets would anticipate less demand.

These markets offer


excellent opportunities Location
because the factors Often produced in regions of
affecting them can economic and political instability
change rapidly creating supply side difficulties.
(North Africa and the Middle East)

Energies are highly volatile


instruments typically for two
major driving factors, which are as
follows: 16 Academy of Financial Trading
Most Traded Energies
The facts change and create opportunities for traders as the price adjusts.

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Commodities - Metals
Metals are quite volatile as sentiment swings. Traders tend to flock to gold
in times of economic hardship.

This is called a flight to safety

Most common metals traded

01 02 03 04

Gold Silver Palladium Platinum

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Commodities
- Soft

Softs, like energies, offer


some excellent moves as This typically occurs through
the underlying factors one or more of the following
affecting price can change factors
quite rapidly.

Supply Demand
Weather patterns affecting Global demand based on
the producing region economic outlook

Supply Demand
Pest related matters affecting Safety concerns relating to
the crop the consumption of the
particular commodity

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Commodities Soft
Anything you can pull from the ground.

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Types of Commodities

Soft Commodities
(more)
Sugar
Cocoa
Soft Commodities
Livestock Coffee
Corn
Soya Bean
Wheat
Precious Metals
Gold
Silver
Energies
Platinum WTI Oil Crude & Brent
Copper Natural Gas

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Stocks:
Google, Facebook, Yahoo,
Apple

Market Indices are


essentially groupings of the
top listed equities on a
particular Exchange / Indices (index)
Market / Region and the S&P500(USA), FTSE100(UK),
average value is similar to ASX200 (Australia)
the relevant price Nikkei225(Japan)

Stocks & Indices


Speculators invest to gain a
return Shares and equities are
designed to raise operating
capital for the issuer

Since Equities are traded on


an exchange they have an
opening and closing times
for trading.
Government Bonds
Governments have borrowing requirements in order to run their
affairs (some manage this better than others)

They go to the market place and they seek funding for fixed periods
anywhere from 1 year, 3 years, 5 years and 10 years.

The market place dictates the price given the economic outlook for that
particular region and the commercial outlook in general i.e. the propensity
to repay.

When there is greater risk associated with a region that rate becomes
higher as investors demand a greater yield to justify their acceptance of
that risk. You can trade bonds via CFDs

Academy of Financial Trading


So many choices -
what to trade?? Commodities
If I can make money from
chocolate, then I can buy
even more chocolate.

Forex
Its the most popular
market, no physical
exchange so I can trade
while other markets are
closed..

Stocks
I use apple and google products
everyday, surely that gives me
an edge.. Government Bonds
I trust my government
110%. They would never do
anything I dont agree
with.

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So many choices, what to trade?

Many sophisticated
No large successful With Forex, investors have
funds only trade Commodities, Market diversified In order to do this
Our preference is one instrument. Its portfolios and
technical trading Indices, Equities and you must find out
all about Bonds, many traders trade a what your options
with as little risk as preference, stick to combination of
possible. struggle to choose a are which we will
what works for portfolio which suits assets. When done help you explore.
you correctly this can
them best.
help spread risk &
gain consistent
returns.

To trade successfully you need to know who is trading, what they are
trading and the techniques they are using to spot opportunities.

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Who is Trading?Who is moving the markets?

1 Large Financial Institutions

Organizations who use the markets to acquire items or offset risk 2

3 Speculators

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The 3 types of
trading we will 1 Fundamental Analysis
explore.
Each one is important in its own
right
2 Technical Analysis

Its important to understand how


others trade so you can achieve
consistency in the long term.
3 Counter Retail
Techniques

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Summary
Markets
Asset Classes
Trading Types

Congratulations you have just laid the foundation of your foundations

Now we can start building on analysis and find opportunities.

We are here to help so contact us anytime

Email: t.daly@academyft.com

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Join the conversation
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Next Lesson
Lesson 2, Coming Soon.

Buying & Selling WHAT and HOW???

Japanese Candlesticks

Leverage & Margin

Stop Loss & Limit Orders

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