Phase 1 introduction
Markets and trading foundations. Build the right market model—where prices come from and what makes a complete trade.
What this phase establishes
On first opening a trading app, most people see a moving price and a collection of candles. This phase replaces that picture: a price is not just a number; it is the result of many people's orders meeting.
After six chapters, you should be able to explain who trades with you, why prices move, what candles compress away, which real orders and positions lie behind trends and support/resistance, and what a complete trade requires before placing an order.
Six chapters
Why would someone sell you their BTC?
Why does the same BTC have a different price a minute later?
What information does a candle retain, and what does it discard?
Why does a price rise often continue for a while?
Why does price often stop at the same level?
What should you settle before placing an order?
Phase project: Trade Card
Write a complete card for a realistic BTC or ETH trade (you do not need to place it):
| Field | What to specify |
|---|---|
| Thesis | What you think will happen and why |
| Entry | Conditions for entering |
| Invalidation | What would show you are wrong |
| Position | Position size and how you calculated it |
| Target | Expected target and its basis |
| Time Horizon | Planned holding period |
| Risk | Worst-case loss |
| Exit | When to exit, whether right or wrong |
Knowledge nodes
| concept_id | Nodes | Foundation | Advanced | 3D |
|---|---|---|---|---|
| TRD-MKT-001 | Market Market | Chapter 1 | E | — |
| TRD-MKT-002 | Price discovery Price Discovery | Chapter 2 | B | — |
| TRD-MKT-003 | Candles and volume Candlestick & OHLCV | Chapter 3 | A | — |
| TRD-MKT-004 | Trend Trend | Chapter 4 | B | — |
| TRD-MKT-005 | Support and resistance Support & Resistance | Chapter 5 | E | — |
| TRD-MKT-006 | Complete trade Trade Anatomy | Chapter 6 | B | — |
Self-test before skipping
If you have live trading experience and answer all four correctly, you may start from Phase 2.
No. Reasons to sell include needing cash, reducing risk, and earning a spread for providing immediate execution. Expecting a fall is only one reason.
No. It is the previous trade's price. Your market order executes against opposite-side resting orders; a larger quantity consumes successive levels.
A definition of “I am wrong.” Without it, there is no basis for a stop and no way to assess the original decision afterwards.
Many people put buy orders, stops, and psychological reference prices near round numbers. Real orders and memories cluster there. Support consists of those orders, not a line on a chart.