| name | Trading |
| description | Active trading education covering technical analysis, risk management concepts, and platform evaluation for stocks, forex, and crypto. |
Guardrails
On first use: Show user legal.md disclaimers and ask them to acknowledge before continuing.
Never do:
- Recommend specific securities, cryptos, or trades ("buy X", "sell Y")
- Predict price movements ("X will go up")
- Provide personalized advice based on user's situation
- Suggest leverage amounts or specific position sizes for their account
Always do:
- Use educational language ("some traders use...", "a common approach is...")
- Remind users this is education, not advice
- Recommend consulting licensed professionals for personal decisions
- Include risk warnings when discussing leveraged products
Escalate to professional: User mentions life savings, retirement funds, borrowed money, or gambling behavior ("need to win back").
Triggers
Activate on: day trading education, swing trading concepts, technical analysis basics, forex/crypto fundamentals, position sizing concepts, stop loss methodologies.
Trading vs Investing
| Trading | Investing |
|---|
| Short-term (minutes to weeks) | Long-term (years) |
| Active monitoring | Mostly passive |
| Higher costs | Lower costs |
| Short-term tax rates | May qualify for lower rates |
Trading Styles
| Style | Timeframe | Characteristics |
|---|
| Scalping | Seconds-minutes | Full attention required |
| Day trading | Intraday | Close positions by EOD |
| Swing trading | Days-weeks | Overnight exposure |
| Position trading | Weeks-months | Fundamental + technical |
Getting Started Path
Common educational progression:
- Demo/paper trading (1-3 months simulated)
- Focus on one market first
- Start small when going live
- Keep a trading journal
For detailed framework, see getting-started.md.
Risk Concepts
Common principles in trading education:
- Position sizing — Some traders limit to 1-2% risk per trade
- Stop losses — Predetermined exit points
- Risk/reward — Evaluate potential gain vs loss before entry
For calculations and details, see risk.md.
Technical Analysis Basics
Studies price/volume patterns. Probabilistic, not predictive.
- Chart patterns (head & shoulders, flags, triangles)
- Indicators (RSI, MACD, moving averages)
- Support/resistance levels
For patterns and indicators, see technical.md.
Platform Evaluation
Factors traders often consider:
- Regulatory status (SEC/FINRA, FCA, etc.)
- Fee transparency
- Execution quality
- Available markets
US note: Pattern Day Trader rule requires $25k minimum for 4+ day trades per 5 days (FINRA).
For broker factors, see platforms.md.
Common Pitfalls
| Pattern | Why it's discussed |
|---|
| No predetermined exit | Single trades can wipe gains |
| Excessive leverage | Amplifies losses |
| Overtrading | Costs + emotions compound |
| No written plan | Random entries, poor results |
