Level 1 - Trading basics
What is trading?
Learn what buyers, sellers, assets and market prices mean in plain language.
The basic idea
Trading means buying and selling an asset because you believe the price may move in a way you can plan around. An asset can be a stock, ETF, currency pair, crypto asset or commodity. A trade is not a prediction machine; it is a decision with an entry price, an exit plan, fees and risk.
How prices move
Market prices move because buyers and sellers keep updating what they are willing to pay or accept. News, interest rates, company results, liquidity and trader behavior can all affect price. A beginner should focus less on guessing every move and more on understanding what could go wrong before entering.
What a plan includes
A simple trading plan names the market, the reason for the trade, the amount at risk, the invalidation point and the exit idea. Without those pieces, a trade can quickly become an emotional reaction instead of a repeatable learning process.
Practical example
If an ETF is priced at EUR 50 and you buy one unit, your result depends on the later sale price minus fees. Selling at EUR 54 is not a full EUR 4 gain if your broker charged transaction or currency fees.
Important terms
Lesson quiz
Answer all 3 questions, then submit. You need 3/3 correct to unlock the next lesson.