Starting from zero
Your first systematic study of trading. Read all 36 Foundation chapters in order and submit one project per phase.
Reading mode
- Who it suits
- People studying trading systematically for the first time
- Pace
- 2 chapters weekly, about four months; submit an artifact after each Phase.
- Goal
- Read all 36 Foundation chapters in order, build complete understanding, and finish the $100,000 virtual-portfolio capstone.
- Recommended reading mode ·Foundation mode
- Shows all content; Three depths defaults to Foundation. The main text is written at this depth, suitable for beginners.
Start with Foundation mode36 stops, of which36 have published bodies; for the rest, read the Phase overview first.
- Phase 11Chapter 1 · Why markets existWhy would someone sell you their BTC?
- 2Chapter 2 · Why prices changeWhy does the same BTC have a different price a minute later?
- 3Chapter 3 · What a candlestick really isWhat information does a candle retain, and what does it discard?
- 4Chapter 4 · Why trends formWhy does a price rise often continue for a while?
- 5Chapter 5 · What support and resistance really areWhy does price often stop at the same level?
- 6Chapter 6 · What makes a complete tradeWhat should you settle before placing an order?
- Phase 27Chapter 7 · Probabilistic thinkingWhat differs between saying BTC will rise and saying it has a 60% chance of rising?
- 8Chapter 8 · Expected ValueIs a trade with only a 40% chance of winning worthwhile?
- 9Chapter 9 · Win rate and reward/riskWhy can a strategy with a 90% win rate keep losing money?
- 10Chapter 10 · Variance and DrawdownWhy can a positive-expectancy strategy lose several times consecutively?
- 11Chapter 11 · Position SizingWhat size suits the same trading idea?
- 12Chapter 12 · Risk of RuinWhy can a positive-expectancy strategy still cause ruin?
- Phase 313Chapter 13 · Order BookWhat happens in the book when you click market buy?
- 14Chapter 14 · LiquidityWhy does a $1 million purchase barely move one coin but move another by several percent?
- 15Chapter 15 · Market MakerWhy is quoting both sides and earning the spread harder than it looks?
- 16Chapter 16 · Crypto Market StructureWhy do exchanges, on-chain AMMs, and aggregators quote and execute the same coin differently?
- 17Chapter 17 · Crypto DerivativesSpot, dated futures, and perpetuals all say buy BTC. What differs?
- 18Chapter 18 · Liquidation FeedbackWhy can a decline accelerate beyond anyone's expectations?
- Phase 419Chapter 19 · Where strategies originateWhose money funds a sustainably profitable strategy?
- 20Chapter 20 · HypothesisWhat is wrong with trading whenever an indicator signals?
- 21Chapter 21 · MechanismWhat economic mechanism makes a strategy profitable?
- 22Chapter 22 · SignalHow can a computer evaluate a feeling such as the market is too hot?
- 23Chapter 23 · Market RegimeWhy does the same strategy profit last year and keep losing this year?
- 24Chapter 24 · FalsificationWhat would show that your strategy is wrong?
- Phase 525Chapter 25 · What a Backtest isCan historical simulation prove future profitability?
- 26Chapter 26 · Data BiasWhy do perfect backtest curves often disappear in live trading?
- 27Chapter 27 · In-sample / Out-of-sampleWhy is tuning parameters to a perfect backtest bad news?
- 28Chapter 28 · Transaction CostWhat remains after costs from a strategy backtesting at 50% annualized?
- 29Chapter 29 · RobustnessWhat does losing profitability after a small parameter change imply?
- 30Chapter 30 · Paper TradingWhy can you not invest real money immediately after a passing backtest?
- Phase 631Chapter 31 · Risk ManagementWhy do professionals inspect risk before opportunities each morning?
- 32Chapter 32 · PortfolioDoes holding BTC, ETH, and SOL diversify risk?
- 33Chapter 33 · ExecutionWhy do two traders earn different returns from the same signal?
- 34Chapter 34 · PnL AttributionIf you profited this month, do you know why?
- 35Chapter 35 · Trading JournalIs a profitable trade necessarily a good decision?
- 36Chapter 36 · Professional Trading SystemWhat is still missing between an idea and a durable trading system?
How to read
- Read in order; do not skip. Phase 2 probability and position sizing are prerequisites for Phase 3 leverage and liquidation. Phase 4 hypotheses and mechanisms precede Phase 5 backtesting.
- Submit a project after every phase: Trade Card, Risk Calculator, Market Structure Report, 3 Strategy Hypotheses, Backtest Report, and finally a $100,000 virtual portfolio.
- Do the labs. Understanding a text and performing a task are different; the lab first turns knowledge into action.
- After all 36 chapters, the suggested allocation is Foundation 60%, Advanced 40%.