Trading Guide

What is Trading?

Trading is the act of buying and selling financial instruments (cryptocurrencies, forex, stocks, commodities) with the goal of making a profit from price movements. At orbits8, we provide access to over 100 trading instruments.

Types of Trading

• Day Trading: Opening and closing positions within the same day
• Swing Trading: Holding positions for several days to weeks
• Scalping: Making multiple quick trades for small profits
• Position Trading: Long-term holding based on fundamental analysis

Types of Charts

• Line Charts: Simple view of closing prices over time
• Candlestick Charts: Shows open, high, low, close (OHLC) for each period
• Bar Charts: Similar to candlesticks but uses vertical bars
• Area Charts: Filled area under the price line

Candlestick Patterns

• Bullish Engulfing: Green candle completely covers previous red candle - indicates uptrend
• Bearish Engulfing: Red candle completely covers previous green candle - indicates downtrend
• Doji: Open and close are nearly equal - indicates market indecision
• Hammer: Small body with long lower shadow - potential reversal signal

Trend Indicators

• Moving Averages (MA): Smooths price data to identify trend direction
• MACD: Shows relationship between two moving averages
• Bollinger Bands: Measures market volatility
• Parabolic SAR: Identifies potential trend reversals

Momentum Indicators

• RSI: Measures speed and change of price movements (0-100)
• Stochastic Oscillator: Compares closing price to price range
• CCI: Identifies cyclical trends
• Williams %R: Measures overbought/oversold levels

Volume Indicators

• Volume: Shows number of trades executed
• OBV: Relates price and volume changes
• Money Flow Index: Uses price and volume to measure buying/selling pressure

Trend Following

Identify and follow the prevailing market direction. Use moving averages and trendlines to confirm the trend. "The trend is your friend" until it ends.

Breakout Trading

Enter when price breaks through support or resistance levels. Look for increased volume to confirm breakout validity.

Range Trading

Buy at support and sell at resistance in ranging markets. Use RSI to identify overbought/oversold conditions.

Scalping

Make multiple small profits from small price changes. Requires quick execution and strict discipline.

Position Sizing

Never risk more than 1-2% of your trading capital on a single trade. Use proper position sizing based on your stop loss distance.

Stop Loss Orders

Always use stop loss orders to limit potential losses. Place stops at logical levels based on market structure.

Take Profit Orders

Set realistic profit targets based on risk-reward ratio (minimum 1:2). Let winners run but protect profits with trailing stops.

Risk-Reward Ratio

Calculate potential profit vs potential loss. Aim for minimum 1:2 risk-reward ratio (risk $100 to make $200).

Common Emotional Traps

• Fear of Missing Out (FOMO): Entering trades because price is moving up rapidly
• Revenge Trading: Trying to recover losses by taking excessive risks
• Overconfidence: Taking larger positions after winning streaks
• Analysis Paralysis: Over-analyzing and missing trading opportunities

Developing Discipline

• Create and follow a trading plan
• Keep a trading journal to track performance
• Take regular breaks to avoid fatigue
• Review and learn from both wins and losses

Trading Tools

• Real-time market data and charts
• Multiple order types (Market, Limit, Stop Loss, Take Profit)
• Technical indicators and drawing tools
• One-click trading interface

Automated Trading

• Built-in trading bots for automated strategies
• Custom bot configuration options
• Backtesting capabilities
• 24/7 automated trading

Mobile Trading

• Trade anywhere with our mobile app
• Real-time price alerts
• Full charting capabilities on mobile
• Secure biometric login

• Start with a demo account to practice without risk
• Keep a trading journal to track your performance
• Stay updated with market news and events
• Never trade based on emotions or tips from social media
• Regularly review and adjust your trading strategy
• Use stop losses on every trade
• Don't overtrade - quality over quantity
• Take profits periodically - don't be greedy