Who Is Level III For? (04:04)
All right. So who is Level III for? Ideally, you’ve already done Level I and Level II. If for some strange reason, you skipped those two, and you are just coming right in at Level III then you should know that Level III is for new traders. Level III is for someone who’s decided that they want to trade. They understand what trading is, but they have absolutely no clue how to go about doing it.
They know they want to do it. They like it. They can see the benefits of trading, and it works for their lifestyle. It works for their short-term goals. They’re very interested, but they just don’t know what to do. They pull up a chart, and that’s it. They’re lost. They have no clue what they’re doing.
Level III gets you more comfortable looking at a chart, understanding TA, getting into trades, understanding what Risk Management, position size and win rate are and what they do for you. Consider Level I and Level II; if you went through it, as riding a bike or training wheels, very handholding, elementary, slow, easy concepts, all very basic.
And Level III is like… Take those things off and smash ’em with a sledgehammer. We’re never going to use them again. So it’s time to get a little tricky and it is time to get a little deep. We’re going to get deeper into TA. We’re gonna get deeper into Risk Management. We’re gonna get deeper into the thought process of taking trades.
This means you’ll learn about trading plans, how they work, and why they work. You’re going to learn about journaling and why that’s important. You’re going to learn all about Risk Management. At least the 101 version of Risk Management, all right. Level III will open your eyes to one of the most important philosophies in money-making: and this isn’t just trading, that’s all money-making across the board, everywhere, every market, every single thing you do that you can make money from. And that is… Capital Preservation. So an essential part of Risk Management and we’ll discuss that in its entirety coming up in Level III. By the end of Level III; you will understand the basics of Technical Analysis.
You’ll be able to select a chart, look for trends, look for patterns, look for breakouts, recognize what is on the chart, and potentially be able to create a trading plan out of that. You will understand what some indicators are and what they’re telling you. There’s a lot of pressure.
There’s a lot of sell pressure. There’s momentum. It’s a sideways market. We’re at equilibrium. You will be able to look at a chart and answer those questions. You’ll also understand what it means to risk capital on a trade. Again, just the most important concepts are all derivatives of Risk Management.
They’re all some form of Risk Management and that is because it has everything to do with your money. And if you are a trader, your lifeblood is your capital. Once you’re out of capital, you can no longer trade. So not having capital makes you not be a trader. So everything you do comes down to how much risk I am putting on this particular trade and does it make sense for my risk appetite? That’s the type of stuff we’ll talk about in Risk Management 101. You’ll learn about trading plans. You’re going to learn about stop losses. We’re going to talk about journaling. We’re going to talk about position sizing. We’ll talk about all that good stuff and more.
And that is who Level III is for. We will be back with the last little sub-lesson: What will you learn?