Welcome to the online trading academy
The Accuindex Trading Academy is a module-based learning programme which allows you to gain confidence and knowledge in trading the financial market independently. The Academy is a free resource which can be provided on a one to one or group basis and is tailored for beginners and experienced traders. Work through our six online trading modules to develop your trading confidence.
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1. An introduction to the markets

Getting started
So, you want to be a trader, but you don’t know what to trade, how to trade or where to trade?

This is the place to start.

By the end of our trading academy, you’ll be informed, enlightened and empowered to start trading for real.

Let’s get down to business; if you want to trade the financial markets, you need to understand what the financial markets are.


If you are confused or not sure, don’t worry, you may know more than you think you do. The financial markets have many names such as the stock market, capital markets, and even just the markets. Put simply, the financial markets are where buyers and sellers can participate in the trading of assets.
There are different types of markets, different participants, different products and even different types of investors. 
To understand the markets fully, it’s important to understand all the players involved.
Financial Markets
Market Participants
Types of Product
Types of Investors
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2. What is CFD Trading

A contract for difference (or CFD) is a contract between two parties; Accuindex is the market maker in this situation and will be the buyer to anyone selling and the seller to anyone buying. The seller will pay to the buyer the difference between the current value of an asset and its value at contract time. (If the difference is negative, then the buyer pays the seller.) In effect CFDs are financial derivatives that allow investors to take advantage of prices moving up (long positions) or prices moving down (short positions) on underlying financial instruments and are often used to speculate on those markets.
  • If the difference between the current and contract time value is negative, then the buyer will pay the seller.
  • If the difference is positive, then the seller will pay the buyer the difference in the values.
There is…
  • No restriction on the entry or exit price of a CFD.
  • No time limit on when this exchange happens.
  • No restriction on buying or selling first.
CFD Trading Example
CFDs are often traded on what is called leverage [don’t worry we’ll get to this a bit later on] to give traders more trading power, flexibility, and opportunities. For the meantime, let’s just keep it simple with the following example:

The Agreement:
  • Person A believes Gold is going to rise from $1,175.00 per oz
  • Person B believes Gold is going to fall from $1,175.00 per oz
Therefore the two clients enter an agreement to settle the difference from $1,175.00.

The Outcome:
  • Person A Buys 1 oz of Gold at $1,175.00
  • Person B Sells 1 oz of Gold at $1,175.00
After 3 days, Gold is trading at $1,180.00 showing Person A profit of $5 on his oz and person B a loss of $5
  • Person A Closes the position at $1,180.00 and makes $5
  • Person B Closes the position at $1,180.00 and loses $5
That example makes CFDs look pretty simple, and that's because, well, they are. Trading CFDs isn’t all that different from trading traditional shares;
  • If you buy 500 shares of a company at £5 then you have £2500 of stock.
  • If you buy 500 shares with a CFD at £5 then you also have £2500.
  • If the share price rises by 10% then you have made £250 from your share trade.
  • If the share price rises by 10% then you have made £250 from your CFD trade
Now you’re thinking, well if the value is the same, the profit is the same, the loss is the same, the risk is the same, then why trade CFDs?

Read “Advantages of CFD Trading” below to find out
Advantages of CFD Trading
The Potential Pitfalls of CFD Trading
The 3 Main Market Categories
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3. What is Forex

If you’re not quite sure what Forex is, don’t worry, you may be more familiar with another of its names; the Foreign Exchange Market, Spot FX, Spot or simply FX!
Forex
FOREX is the largest financial market in the world in terms of both size and liquidity. To give you a general idea of the size, an average of $5 trillion is traded globally each day. No stock market in the world trades such a huge amount on a daily basis.

The idea of FOREX is simple really; it’s the exchange of one country’s currency for the currency of another country. With FX you’re essentially buying one currency, and selling the other and so naturally FX is traded in pairs such the pound and the US Dollar [GBP/USD]. There are some “FX pairs” that are more popular than others, Euro vs. US Dollar [EUR/USD], British Pound vs. US Dollar [GBP/USD], US Dollar vs. Japanese yen [USD/JPY], and US Dollar vs. Swiss Franc [USD/CHF]. These four popular currency pairs are often referred to as “the Majors”


At almost any point during the day, there is always a financial center somewhere in the world open for business. The FX market is open 24 hours a day and only closes on weekends between 22:00 (GMT) on Friday and 22:00 (GMT) on Sunday.


The Foreign Exchange market is homeless; by that, we mean that it has no set physical location. Homeless markets are known as OTC [Over-the-Counter] markets in which all trades are processed electronically 24 hours a day between banks around the world. Forex, unlike other financial markets, does not have an exchange center so you can pretty much trade FX anywhere in the world, at any point in time but there are some peak trading session times in each region. We have a general outline below:

REGION     CITY             Session OPEN [GMT]        Session CLOSE [GMT]
EUROPE      London          08:00                                 17:00
                 Frankfurt        07:00                                 16:00
AMERICA    New York       13:00                                  22:00
                 Chicago          14:00                                 23:00
ASIA          Tokyo            00:00                                 09:00
                 Hong Kong     01:00                                 10:00
PACIFIC     Sydney           22:00                                 07:00
                 Wellington      22:00                                 06:00
Quotes in Forex
The Bid, The Ask and The Spread
Going Long or Going Short
Watch Your Pips Grow into a lot More
How Much is a Lot?
Leverage and Margin
Calculating your Profit and Loss in the Market
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4. What is Forex

Trading isn’t a guessing game; you’ve got to plan your work and work your plan.
The Technical vs. The Fundamental
Technical and Fundamental Analysis are both tools used by traders to help determine a trading strategy. Both fundamental and technical analysis help traders to predict possible trends and future prices.

Technical Analysis; “The process of analysing a financial instrument's historical prices and other statistics generated by market activity, in an effort to determine probable future prices”


Fundamental Analysis; “'The determination of price based on future earnings – it focuses predominantly on factors such as the overall state of the economy, interest rates, production, earnings, and management”


Here it is put simply;


Technical analysis looks at past prices of an asset to predict future prices, and Fundamental Analysis believes that market movement is determined by macro and microeconomic factors including interest rates, war, political unrest, recession, global economic depression etc.


Essentially the fundamentalist studies the cause of market movement, while the technician studies the effect


There are probably a million questions running through your mind;

  • “Which one is better?”
  • “What’s the difference between the two?”
  • “Can I use them both?”
  • “How do I analyse?”
  • “What do I analyse?”
So, let’s start from the very beginning...
The Basics of the Fundamentals
Interest Rates
Money Supply
Inflation
Economic Release
What is Technical Analysis?
Support and Resistance
Trendlines and Channels
Indicators
Lagging Indicators
Leading Indicators
Bollinger Bands
Fibonacci Sequence
Chart Patterns
Conclusion
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5. Risk

Let's not get ahead of ourselves; before speaking about how to manage our risk, let’s make sure we understand what "risk" actually means.
Financial Risk
The risk in any situation is Uncertainty
'The chance of an outcome being different than expected'

So now that we know what risk is, what exactly is the risk in terms of finance?

'The chance of an investment's actual return being different than expected'
It’s often said that trading the financial markets is effectively the trading of risk.

Example: "By buying EUR/USD, I effectively have the opinion the Euro will strengthen against the US Dollar"

The risk is the possibility of the Euro weakening against the US Dollar – an adverse movement

In other words, financial risk is the possibility of losing part or all of your original investment
Why “Risk” It
What Makes Trading such risky business
Risk Management Tools
Risk Tolerance
Mitigating the Risk
Golden Rules for Trading in a Volatille Market
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6. Trading Psychology

Trading isn’t for the weak at heart, it’s a lot more emotional than you may think, and before you can master trading you have to learn to master your emotions.
The Emotions of Trading
When trading there are two emotions that are more common, and more dangerous, than all the rest; fear and greed.

Fear and greed can ruin even the best trading strategies


One moment of fear or greed can lead to a moment of madness and months of hard-won profits going down the drain


Uncontrolled emotions should not be an excuse for losses and losses should not be an excuse for uncontrolled emotions


Remember!!
Trading affects psychology as much as psychology affects trading


Greed

“You can’t feed on greed”

  • Many people think that greed is thinking that the sole aim of trading is to make money.
  • This is NOT what greed is
Greed is trying to make money too quickly
There are lots of ways to be greedy in trading;
  • Trading in sizes that are too large
  • Trading too frequently
  • Having unrealistic expectations
  • Dreaming of the big hit trade, rather than steadily building your equity
Fear
Fear in trading has two faces;
  • Fear of loss
  • Fear of missing out
The fear of loss compels traders to close profitable trades prematurely, meaning they miss out on potential profit
The fear of missing out compels traders to abandon their trading strategy so they do not miss a major price move
Fear is NOT good as it leads to overtrading and miss-timed entry and exit points
So
DON’T BE SCARED!!
Managing Risk and Emotion
Trading Tips

ACCUINDEX LTD, a company registered in Vanuatu with company number 40306.

ACCUINDEX is authorized and regulated by The Financial Services commission (VFSC) in Vanuatu.

High Risk Investment Warning: Trading foreign exchange on margin carries a high level of risk, and may not be suitable for all investors. The high degree of leverage can work against you as well as for you. Before deciding to trade foreign exchange you should carefully consider your investment objectives, level of experience, and risk appetite. The possibility exists that you could sustain a loss of some or all of your initial investment and therefore you should not invest money that you cannot afford to lose. You should be aware of all the risks associated with foreign exchange trading, and seek advice from an independent financial adviser if you have any doubts.

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