Introduction To Trading 

TERMINOLOGY

Before you learn to trade, we MUST know the true meaning of a few terms.
I have written down the most important terms and tried to explain them in the simplest manner possible.
If you're a new trader, please go through them. People who already trade can refresh their understanding.

WHERE CAN I SEE THE CHARTS?

There are several websites, I use tradingview.com. Simple, easy and offers everything most people need.
You don’t need a paid version. The basic free version is enough.

• 1 Bitcoin = 100 Million satoshis
• Exchange- In terms of Crypto, a marketplace which allows buying and selling of Bitcoin or other coins. Eg.Bybit,Bitmex.
• FOMO- Fear Of Missing Out a trade. All beginners do it; they enter a trade without enough research in the fear of missing out profits.
• Total supply- The amount limit of coins that will ever exist. Supply limit of Bitcoin is 21 million. 
•  Bull market- A market where the prices are seeing a continuous uptrend, leading to new highs being created. Generally, happens when new investors enter the market.
• Bear market- A period where the prices are seeing a long term down trend leading to a sell off. Note- A Bull market can have many bearish cycles and vise versa as shown below. (edited)
• Market Cap: The market capitalisation of an Asset calculated by current supply of coins  multiplied by CMP of one coin.    
•   Bubble- A situation where the prices are irrationally high as compared to the actual value of theasset. Whole of an asset could be a bubble, or a market cycle could be a bubble. E.g. Theranos as an asset/company was a bubble.
• FUD- Fear, Uncertainty and Doubt
• Day trading- Taking a position in the market, either buy or sell and exiting it the same day.E.g. McAfee announcing in 2018 that Binance had been hacked was a FUD.0
• Swing trading- This method looks for buying and selling positions in a weekly range.Swing traders make my 2-3 traders a week. Most of my trades are swing trades.
• Positional trading- The aim is to buy monthly lows and hold them for days, weeks or sometimes months. This is a longer term trading time period.
• Day trading- Taking a position in the market, either buy or sell and exiting it the same day.
• Leverage- Refers to the extra amount of asset bought or sold, over your capital limit. E.g. If you buy $2000 of Bitcoin with a Capital of $1000, you have a leverage of 2x. Sites like Bitmex allow leverage as per your choice.
• Margin- The amount of funds required to open a leveraged trade. E.g. If you want to open a position of $1000 with a leverage of 5X, your margin requirement would be $200.                    200 x 5 = $1000
• Long Position- This is a buy position buy with leverage. E.g. If you have $1000 as capital, you could buy $2000 worth of Bitcoin with leverage, or even more. Both profit and loss in this case is multiplied by the leverage you take. E.g. A 10% rise/fall in price in case of a long position with 2x leverage will lead to 20% profit or 20% loss.
• Short Position- Exact opposite of Long Entry. You enter a short entry when you expect the prices to fall. Shorting allows you to make money in a bear market.
• Volatility- It is the percentage movement in price of an asset over a period. A balanced volatile asset gives ample opportunity to short and long. Traders look for predictable volatility. A very highly volatile or low volatile assets isn't considered good for trading.
• ROE: Return-on-Equity. This is calculated by the actual capital employed in a trade and not through leverage.
• OHLC: Open, high, low and close
• Altcoin- All coins except Bitcoin.
• Bull trap- A technique used by market makers to buy a huge amount suddenly, spiking the price. This makes everyone else that this is a Breakout and everyone buys. They market makers then sell enormous amounts, pushing the prices down, in turn liquidation everyone else that had bought, producing a cascading effect of liquidations. Bear trap is just the opposite of the above for making the prices go higher in the end.
• Ask/Bid: Sell orders are asks and Buy orders are Bids.
• Spread-The difference between what the sellers are ready to sell at and what the buyers are ready to buy at. There always exists a small spread on all exchange, the Higher the liquidity, the lower the spread.
• Support and resistance- A support is a zone/line where we can expect the price to bounce backup. Resistance is a line/zone where we can expect the price to rebound downwards. We will study this in the next lessons
• Walls: Extremely large orders at a range.

• Demand Zone- A zone with huge buy orders. This is determined through the heat map.
• Supply Zone- A zone with huge sell orders. This is determined through the heat map.
• Stop-Loss: Order that is triggered when the price goes below this point. Used to cut losses.
• Liquidity- The measure of how actively the coin is being traded in the market. A high liquidity coin/exchange has many buyers and sellers at the same time, making it easier to acquire or sell the coin at any time.
• Uptrend- A price is said to be in an uptrend when it's making higher highs and higher lows. It can be confined in a channel.
• Downtrend--Opposite of uptrend, the prices here make lower highs and lower lows.
• Consolidation- A period where the price is ranging in a well-defined region. This is a period of indecision and generally leads to a volatile movement in either directions.
• Correction- A correction is a fall in price after making a new peak or an upwards rally. Many authors define the correction as 10% drop from all time high but its arbitrary.    
• Sideways market- an indecisive market which isn't leading to a breakdown or a Breakout, and not giving any signals in either way.
• Sell off- Profit taking after a rally in price, which leads to lowering of price of the asset.
• Rally- An upward trend leading to increase in price of the asset. Can happen in both bear and bull
• market.
• Accumulation: The process by which one builds a position in an asset.
• Pattern- A chart pattern is a predefined shape that have been historically studied by technicians. Traders try to use these previous performance statistics to predict future price movements. E.g. A Head and Shoulders top is considered bearish. There are many such pattern which will be (edited) Fractal: A pattern of Price movement which has occurred earlier and might occur again.
• Limit Order: Order will execute at a predefined price, if the market riches that price.
• Market Order: An order to buy or sell at the current price level, executed immediately.
• Time Period/ Time Frame- The time spread of each candle stick in a chart.Common time periods are 15min,30 min, 1Hour, 4 Hour, Daily and so on.
• ATH- All-time highs prices.
• Average Down: Trying to lower the average entry cost of a position by slowly buying the asset at reducing rates.
• Liquidation--When you are stopped out of your position because the trade went in the opposite direction and your margins are not big enough to carry the trade anymore.
• Arbitrage: A method of making profit using the pricing difference between exchanges E.g. If Bitcoin is trading at $10,000 on Bitstamp and $10,100 on Bitfinex, People will buy from Bitstamp and sell on Bitfinex.